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<p align="center"><font size="2" face="sans-serif"><b><font size="5">SECURITIES
        AND EXCHANGE COMMISSION</font></b><br>
      <b><font size="3">Washington, D.C. 20549</font><br>
      </b><br>
</font></p>
<p align="center"><font size="2" face="sans-serif"><b><font size="5">Form 20-F</font></b></font></p>
<hr width="150" size="2" noshade>
<p>&nbsp;</p>
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    <td align="center" width="10%"><font face="sans-serif"><img src="emptybox.gif" width="12" height="12"></font></td>
    <td align="left"><font size="2" face="sans-serif">REGISTRATION STATEMENT
        PURSUANT TO SECTION 12(b) OR (g)&nbsp;OF THE SECURITIES EXCHANGE ACT
        OF 1934</font></td>
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    <td colspan="2" align="center">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="2" align="center"><font size="2" face="sans-serif">OR</font></td>
  </tr>
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    <td align="center">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
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    <td align="center"><font face="sans-serif"><img src="tickedbox.gif" width="12" height="12"></font></td>
    <td align="left"><font size="2" face="sans-serif">ANNUAL REPORT PURSUANT
        TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
      For the fiscal year ended:&nbsp;<u>&nbsp;&nbsp;&nbsp; March 31, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
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    <td colspan="2" align="center">&nbsp;</td>
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  <tr valign="top">
    <td colspan="2" align="center"><font size="2" face="sans-serif">OR</font></td>
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    <td align="center">&nbsp;</td>
    <td align="left">&nbsp;</td>
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    <td align="center"><font face="sans-serif"><img src="emptybox.gif" width="12" height="12"></font></td>
    <td align="left"><font size="2" face="sans-serif">TRANSITION REPORT PURSUANT
        TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
      For the transition period from:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
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    <td colspan="2" align="center">&nbsp;</td>
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    <td colspan="2" align="center"><font size="2" face="sans-serif">OR</font></td>
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    <td align="center">&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
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    <td align="center"><font face="sans-serif"><img src="emptybox.gif" width="12" height="12"></font></td>
    <td align="left"><font size="2" face="sans-serif">SHELL COMPANY REPORT PURSUANT
        TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
      Date of event requiring this shell company report:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
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<p align="left"><font size="2" face="sans-serif">&nbsp;Commission file number:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1-10086&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
<p align="center">&nbsp;</p>
<p align="center"><font size="2" face="sans-serif"><b><font size="5">VODAFONE
        GROUP PUBLIC LIMITED COMPANY</font></b><br>
      <b>(formerly VODAFONE AIRTOUCH PUBLIC LIMITED COMPANY)</b><br>
      <i><font size="1">(Exact name of Registrant as specified in its charter)</font></i></font></p>
<p align="center"><font size="2" face="sans-serif"><b>England</b><br>
      <i><font size="1">(Jurisdiction of incorporation or organization)</font></i></font></p>
<p align="center"><font size="2" face="sans-serif"><b>Vodafone House, The Connection,
      Newbury, Berkshire RG14 2FN, England</b><br>
      <i><font size="1">(Address of principal executive offices)</font></i></font></p>
<p align="center"><font size="2" face="sans-serif">Securities registered or to
    be registered pursuant to Section 12(b) of the Act:</font></p>
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  <tr valign="top">
    <td align="center" width="50%"><font size="2" face="sans-serif"><b><u><font size="1">Title
              of each class</font></u></b></font></td>
    <td align="center"><font size="2" face="sans-serif"><b><font size="1">Name
            of each exchange<br>
              <u>on which registered</u></font></b></font></td>
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    <td align="center"><font size="2" face="sans-serif">Ordinary shares of $0.10
        each</font></td>
    <td align="center"><font size="2" face="sans-serif">New York Stock Exchange<sup>*</sup></font></td>
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    <td align="left" width="3%"><font size="2" face="sans-serif"><font size="1">*</font></font></td>
    <td align="left"><font size="2" face="sans-serif"><font size="1">Listed,
          not for trading, but only in connection with the registration of American
          Depositary Shares, pursuant to the requirements of the Securities and
          Exchange Commission.</font></font></td>
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<p align="center"><font size="2" face="sans-serif"><br>
  Securities registered or to be registered pursuant to Section 12(g) of the
      Act:<br>
  <b>None</b><br>
  <br>
  Securities for which there is a reporting obligation pursuant to Section 15(d)
  of the Act:<br>
  <b>None</b></font></p>
<p align="left">&nbsp;</p>
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    <td align="left"></td>
    <td colspan="3" align="left"><font size="2" face="sans-serif"> Indicate the number of
        outstanding shares of each of the issuer&#8217;s classes of capital or
        common stock as of the close of the period covered by the annual report.</font></td>
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    <td align="left"></td>
    <td colspan="3" align="left">&nbsp;</td>
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    <td height="21" align="left"></td>
    <td align="left"><font size="2" face="sans-serif">Ordinary Shares of $0.10
    each </font></td>
    <td width="10%" align="right"><font size="2" face="sans-serif">60,118,575,455</font></td>
    <td align="left">&nbsp;</td>
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    <td align="left" width="3%"></td>
    <td width="40%" align="left"><font size="2" face="sans-serif">7% Cumulative
        Fixed Rate Shares of &pound;1 each </font></td>
    <td align="right"><font size="2" face="sans-serif">50,000</font></td>
    <td align="left">&nbsp;</td>
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    <td align="left">&nbsp;</td>
    <td colspan="3" align="left">&nbsp;</td>
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    <td align="left"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td colspan="3" align="left"><font size="2" face="sans-serif">Indicate by check mark
        if the registrant is a well-known seasoned issuer, as defined in Rule
        405 of the Securities Act</font></td>
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    <td colspan="3">&nbsp;</td>
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  <tr valign="top">
    <td colspan="4" align="center"><font size="2" face="sans-serif">&nbsp;Yes&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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    <td align="left" width="3%"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="sans-serif">If this report is an annual
        or transition report, indicate by check mark if the registrant is not
        required to file reports pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934.</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
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    <td height="15" colspan="2"><font size="2" face="sans-serif">&nbsp;Yes&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
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    <td align="left" width="2%"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="sans-serif">Indicate by check mark
        whether the registrant (1) has filed all reports required to be filed
        by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
        the preceding 12 months (or for such shorter period that the registrant
        was required to file such reports), and (2) has been subject to such
        filing requirements for the past 90 days:</font></td>
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    <td align="center"><font size="2" face="sans-serif">Yes&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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    <td align="left" width="3%"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="sans-serif">Indicate by check mark
        whether the registrant is a large accelerated filer, an accelerated filer,
        or a non-accelerated filer. See definition of &#8220;accelerated filer
        and large accelerated filer&#8221; in Rule 12b-2 of the Exchange Act.
        (Check one):</font></td>
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    <td align="center">&nbsp;</td>
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    <td align="left"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="sans-serif">Large accelerated filer&nbsp;<img src="tickedbox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated
        filer&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated
        filer&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="left"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="left"><font size="2" face="sans-serif">Indicate by check mark
        which financial statements item the registrant has elected to follow:</font></td>
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    <td>&nbsp;</td>
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    <td align="center"><font size="2" face="sans-serif">Item 17&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item
        18 <img src="tickedbox.gif" width="12" height="12"></font></td>
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<br>
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    <td>&nbsp;</td>
    <td><font size="2" face="sans-serif">If this is an annual report, indicate
        by check mark whether the registrant is a shell company (as defined in
        Rule 12b-2 of the Exchange Act):</font></td>
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    <td width="3%">&nbsp;</td>
    <td>&nbsp;</td>
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    <td align="left"><font size="2" face="sans-serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="sans-serif">&nbsp;Yes&nbsp;<img src="emptybox.gif" width="12" height="12">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
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<p><a name="p??"></a>  </p>
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    <td colspan="3" bgcolor="#e82417"><font color="#ffffff" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To
      enrich our customers&#146;<br>
      lives through the unique,<br>
      expanding power of mobile <br>
      communication.</font> </td>
    <td>&nbsp;</td>
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    <td><font color="#FFFFFF" size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This constitutes the Annual Report on Form 20-F (the &#8220;20-F&#8221;)
      of Vodafone Group Plc (the &#8220;Company&#8221;) in accordance with the
      requirements of the US Securities and Exchange Commission (the &#8220;SEC&#8221;)
      and is dated 14 June 2006. This document contains the information set out
      within the Company&#8217;s Annual Report in accordance with International
      Financial Reporting Standards (&#8220;IFRS&#8221;) and with those parts
      of the Companies Act 1985 applicable to companies reporting under IFRS,
      dated 30 May 2006, as updated or supplemented at the time of filing of
      the 20-F with the SEC, which may be later amended if necessary. References
      to IFRS refer to the application of International Financial Reporting Standards,
      including International Accounting Standards (&#8220;IAS&#8221;) and interpretations
      issued by the International Accounting Standards Board (&#8220;IASB&#8221;)
      and its committees, and as interpreted by any regulatory bodies applicable
      to the Group and adopted for use in the European Union (&#8220;EU&#8221;).
      Financial information for the year ended 31 March 2005, presented as comparative
      figures in this report, has been restated from UK GAAP in effect at 31
      March 2004 in accordance with IFRS. The content of the Group&#8217;s website
      (www.vodafone.com) should not be considered to form part of this Annual
      Report or the Company&#8217;s Annual Report on Form 20-F.</font>  <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">References
      to the &#147;Group&#148; or &#147;Vodafone&#148; are references to the Company
      and its subsidiary undertakings and, where the context requires, its interests
      in joint ventures and associated undertakings.</font></font> <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the
      discussion of the Group&#146;s reported financial position and results for
      the year ended 31 March 2006, information in addition to that contained
      within the Consolidated Financial Statements is presented on the basis that
      it provides readers with additional financial information regularly reviewed
      by management. This information is provided to assist investor assessment
    of the Group&#146;s performance from period to period. However,</font></font>    </td>
    <td>&nbsp;</td>
    <td valign="top"> <font color="#ffffff" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
      additional information presented is not uniformly defined by all companies
      in the Group&#146;s industry. Accordingly, it may not be comparable with
      similarly titled measures and disclosures by other companies. Definitions
      of the terms presented are shown on page 49.</font> <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In presenting
      and discussing the Group&#146;s reported financial position, operating results
      and cash flows, certain information is derived from amounts calculated in
      accordance with IFRS but this information is not itself an expressly permitted
      GAAP measure. Such non-GAAP measures should not be viewed in isolation as
      an alternative to the equivalent GAAP measure. An explanation as to the
      use of these measures and reconciliations to their nearest equivalent GAAP
      measure can be found on pages 47 to 48.</font></font> <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Report
      of the Directors, incorporating the Business Review, covers pages 6 to 70
      of this Annual Report.</font></font> <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This Annual
      Report contains forward-looking statements within the meaning of the US
      Private Securities Litigation Reform Act of 1995 with respect to the Group&#146;s
      financial condition, results of operations and business management and strategy,
      plans and objectives for the Group. For further details, please see &#147;Cautionary
      Statement Regarding Forward-Looking Statements&#148; and &#147;Outlook and
      Risk Factors&#148; for a discussion of the risks associated with these statements.</font></font>
      <font color="#ffffff"><br>
      <br>
      <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone,
      Vodafone live!, Vodafone Mobile Connect, Vodafone Wireless Office, Vodafone
      Simply, Vodafone Passport, Vodafone Zuhause, Vodafone Casa, Oficina Vodafone,
      Stop the Clock and Vodafone Radio DJ are trademarks of the Vodafone Group.
      Other product and company names mentioned herein may be the trademarks of
      their respective owners.</font></font> </td>
    <td>&nbsp;</td>
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<a name="p??"></a>
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    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top"> <b><font color="#e82417" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Highlights
      for the Year</font></b> </td>
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    <td valign="top">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
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    <td colspan="2" valign="top"> <font size="3"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial
      performance:</font></b> </font></td>
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  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      revenue of &pound;29.4 billion from continuing operations. Mobile <br>
      telecommunications
      revenue increased to &pound;28.1 billion, representing <br>
      growth of 9.3%</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss
      before taxation for the year was &pound;14.9 billion after impairment losses
      <br>
      of &pound;23.5 billion</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free
      cash flow of &pound;6.4 billion, and net cash inflow from operating activities,
      <br>
      after net taxation paid of &pound;1.7 billion, up 10.3% to &pound;10.2 billion
      from <br>
      continuing operations</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top"> <font size="3"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operational
      highlights:</font></b> </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      proportionate customer additions of 21.5 million in the year</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Closing
      proportionate customer base of 170.6 million, with organic growth <br>
      of 14.9%
      in the year</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-messaging
      data revenue grew by 61.2% to &pound;0.8 billion, with organic <br>
      growth of
      60.4%</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      voice usage increased by 24.6% to 178.3 billion minutes, with organic <br>
      growth
      of 18.9%</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top"> <font size="3"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Increasing
      returns to shareholders:</font></b> </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      dividends per share increased by 49%, to 6.07 pence, with a final <br>
      dividend
      per share of 3.87 pence, giving a dividend pay out ratio of 60% on <br>
      underlying
      earnings per share and a total pay out of &pound;3.7 billion for the <br>
      financial
      year</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;6.5
      billion expended on the share purchase programme in the 2006 <br>
      financial year,
      reducing shares in issue by 7.5%</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;9.0
      billion to be returned to shareholders in the 2007 financial year via <br>&#147;
      B&#148;
      share arrangement, including an additional &pound;3 billion announced on<br>
      30</font><font size="3">&nbsp;<font color="#e82417" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May
      2006</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="4%">&nbsp;</td>
    <td valign="top" width="3%"><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top" nowrap><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      returns to shareholders announced over the year of &pound;19.2 billion</font></td>
  </tr>
</table>
</div>
<div style="float: left; width: 5%">
</div>
<div style="float: left; width: 30%">
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#e82417">
      <td>&nbsp;</td>
      <td><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Highlights</font></b></td>
      <td align="right">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td bgcolor="#cfe7f0">
        <hr noshade size=1>
      </td>
      <td bgcolor="#cfe7f0">
        <hr noshade size=1>
      </td>
      <td bgcolor="#cfe7f0">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td bgcolor="#cfe7f0"><a href="#p2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
        Highlights</font></a></td>
      <td align="right" bgcolor="#cfe7f0"><a href="#p2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></a></td>
      <td bgcolor="#cfe7f0">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
      <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
      <td bgcolor="#cfe7f0">&nbsp;</td>
    </tr>
    <tr>
      <td width="2%" bgcolor="#cfe7f0">&nbsp;</td>
      <td bgcolor="#cfe7f0"><a href="#p4"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
        at a Glance</font></a></td>
      <td width="5%" align="right" bgcolor="#cfe7f0"><a href="#p4"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></a></td>
      <td width="2%" bgcolor="#cfe7f0">&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
      <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
      <td bgcolor="#cfe7f0">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font color="#ffffff">&nbsp;</font></td>
      <td><font color="#ffffff">&nbsp;</font></td>
      <td><font color="#ffffff">&nbsp;</font></td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Strategy</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p6"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairman&#146;s
        Statement</font></a></td>
      <td align="right"><a href="#p6"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p8"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief
        Executive&#146;s Review</font></a></td>
      <td align="right"><a href="#p8"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p12"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business
        Overview</font></a></td>
      <td align="right"><a href="#p12"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p21"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Regulation</font></a></td>
      <td align="right"><a href="#p21"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p25"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Introduction</font></a></td>
      <td align="right"><a href="#p25"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p26"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Critical
        Accounting Estimates</font></a></td>
      <td align="right"><a href="#p26"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p29"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key
        Performance Indicators</font></a></td>
      <td align="right"><a href="#p29"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p30"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        Results</font></a></td>
      <td align="right"><a href="#p30"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p38"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
        Position and Resources</font></a></td>
      <td align="right"><a href="#p38"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p43"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk
        Factors, Trends and Outlook</font></a></td>
      <td align="right"><a href="#p43"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p46"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cautionary
        Statement Regarding</font></a></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p46">Forward-Looking
        Statements</a></font></font></td>
      <td align="right"><a href="#p46"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p47"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-GAAP
        Information</font></a></td>
      <td align="right"><a href="#p47"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">47</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p49"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Definition
        of Terms</font></a></td>
      <td align="right"><a href="#p49"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p50"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board
        of Directors</font></a></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p50">and
        Group Management</a></font></font></td>
      <td align="right"><a href="#p50"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p53"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate
        Governance</font></a></td>
      <td align="right"><a href="#p53"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employees</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p59">Corporate
        Responsibility</a></font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p59">and
        Environmental Issues</a></font></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p59">59</a></font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s
        Report to Shareholders</font></a></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p61">on
        Directors&#146; Remuneration</a></font></font></td>
      <td align="right"><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors&#146; Statement
        of Responsibility</font></a></td>
      <td align="right"><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p71"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated
        Financial Statements</font></a></td>
      <td align="right"><a href="#p71"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><a href="#p131"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report
        of Independent Registered</font></a></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p131">Public
        Accounting Firm on the</a></font></font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p131">Consolidated
        Financial Statements</a></font></font></td>
      <td align="right"><a href="#p131"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">131</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><a href="#p132"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company
        Financial Statements</font></a></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p132">of
        Vodafone Group Plc</a></font></font></td>
      <td align="right"><a href="#p132"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">132</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><a href="#p139"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report
        of Independent Registered</font></a></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a href="#p139">Public
        Accounting Firm on the</a></font></font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td nowrap><font size="2">&nbsp;&nbsp;&nbsp;<a href="#p139"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company
        Financial Statements</font></a></font></td>
      <td align="right"><a href="#p139"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#cfe7f0">&nbsp;</td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td bgcolor="#e82417">&nbsp;</td>
      <td bgcolor="#e82417"><font size="2"><b><font color="#ffffff" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
        information</font></b></font></td>
      <td bgcolor="#e82417"><font size="2">&nbsp;</font></td>
      <td bgcolor="#e82417">&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>
        <hr noshade size=1>
      </td>
      <td>
        <hr noshade size=1>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p140"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor
        Information</font></a></td>
      <td align="right"><a href="#p140"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td><a href="#p146"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Form
        20-F Cross Reference Guide</font></a></td>
      <td align="right"><a href="#p146"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146</font></a></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#cfe7f0">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
  </table>
</div><br clear="all">
<p> <b></b></p>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p2"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#e82417" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial Highlights</font></b></p>
<p>&nbsp;</p>
<p>
<img src="b826353-20fx4x1.jpg" width="100%" border=0>
</p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The selected financial data set out on the following pages is derived from the</font><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated
Financial Statements of the Company on pages 71 to 130 and as such should be
read in conjunction with them. Certain trends within the financial data presented
below have been impacted by business acquisitions and disposals, the most significant
of which are described in &#147;Business Overview &#150; History and Development of the Company&#148;.</font>
  </font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Consolidated Financial
Statements are prepared in accordance with IFRS, on the basis set out in note
1 to the Consolidated Financial Statements, which differ in certain significant
respects from US GAAP. For further details, see note 38 to the Consolidated Financial
Statements, &#147;US GAAP information&#148;. Solely for convenience, amounts represented below in dollars have been translated at $1.7393: &pound;1,
the Noon Buying Rate on 31 March 2006.</font>
</font></div>
<p><br clear="all">
</p>
<p></p>
<p>&nbsp;</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At/year
    ended 31 March</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><font size="1">&nbsp;</font></td>
  <td colspan=12 align="right"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2003</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="13"><hr noshade size=1></td>
  </tr>
<tr>
   <td><b><font color="#e82417" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Income Statement Data</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">IFRS</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td width="7%" align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">51,048</font></b></td>
   <td width="2%" align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,350</font></b></td>
   <td width="2%" align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%"><font size="2">&nbsp;</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%"><font size="2">&nbsp;</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%"><font size="2">&nbsp;</font></td>
   <td width="2%" align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating (loss)/profit</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(24,496</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,084</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted operating profit (Non-GAAP measure)</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,348</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,399</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,353</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit before taxation</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(25,833</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from continuing operations</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(29,973</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,233</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US GAAP</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41,319</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,756</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,370</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,637</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,487</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,447</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)(3)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23,081</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(13,270</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13,752</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,105</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9,072</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(16,769</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Cash Flow Data</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">IFRS</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from operating activities</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,723</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,190</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,240</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from investing activities</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11,573</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,654</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,112</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from financing activities</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,896</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,540</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,242</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free cash flow (Non-GAAP measure)</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,163</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,418</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,592</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font color="#e82417" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Balance Sheet Data</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">IFRS</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total assets</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">220,435</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148,383</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,312</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,648</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148,580</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,425</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,800</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total liabilities</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">72,052</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41,426</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">33,549</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US GAAP</font></b></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholders&#146; equity</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">151,291</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">86,984</font></b></td>
   <td align="left" bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">107,295</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129,141</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140,580</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141,016</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td colspan="13"><hr noshade size=1></td>
  </tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p3"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Highlights</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<img src="b826353-20fx5x1.jpg" width="100%" border=0></p>
<p>&nbsp;</p>
<p>&nbsp; </p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td colspan=4 align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At/year
    ended 31 March</font></font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td colspan=12 align="right"><hr noshade size=1>
</td>
  </tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2003</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="13"><hr noshade size=1></td>
  </tr>
<tr>
   <td>&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td align="left">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="left">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Earnings
    Per Share (&#147;EPS&#148;)</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted average number of shares (millions)</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Basic</font></font></td>
   <td width="7%" bgcolor="#eeeeee">&nbsp;</td>
   <td width="2%" bgcolor="#eeeeee">&nbsp;</td>
   <td width="7%" align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">62,607</font></b></td>
   <td width="2%" align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66,196</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,096</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,155</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67,961</font></td>
   <td width="2%" align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Diluted</font></font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">62,607</font></b></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66,427</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,096</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,155</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67,961</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">IFRS</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per ordinary share</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Continuing</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48.11</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27.66</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.12</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Discontinued</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12.78</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7.35</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.56</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per ordinary share</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Continuing</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48.11</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27.66</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.09</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Discontinued</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12.78</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7.35</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.56</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per ADS</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Continuing</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(481.1</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(276.6</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81.2</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Discontinued</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(127.8</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(73.5</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.6</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td bgcolor="#eeeeee">&nbsp;</td>
  <td align="left" bgcolor="#eeeeee">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per ADS</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Continuing</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(481.1</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(276.6</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80.9</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Discontinued</font></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(127.8</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(73.5</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.6</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US GAAP</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)(3)</font></sup></font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic and diluted loss per ordinary share</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(36.87</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21.20</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20.77</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11.90</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13.31</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(24.67</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic and diluted loss per ADS</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(368.7</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(212.0</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(207.7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(119.0</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(133.1</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(246.7</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)p</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash Dividends</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)(6)</font></sup></font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount per ordinary share</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.56</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.07</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.07</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0315</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6929</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4721</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount per ADS</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">105.6</font></b></td>
   <td bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&cent;</font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">60.7</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40.7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.315</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.929</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.721</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">p</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font color="#e82417" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other Data</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">IFRS</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ratio of earnings to fixed charges</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.0</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deficit</font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$(28,733</font></b></td>
   <td bgcolor="#eeeeee"><b><font size="2"><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)m</font></font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;(16,520</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)m</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US GAAP</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td bgcolor="#eeeeee"><font size="2">&nbsp;</font></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ratio of earnings to fixed charges</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#eeeeee">&nbsp;</td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#eeeeee">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deficit</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></sup></font></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$(24,133</font></b></td>
   <td bgcolor="#eeeeee"><b><font size="2"><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)m</font></font></b></td>
   <td align="right" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;(13,875</font></b></td>
   <td align="left" bgcolor="#eeeeee"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)m</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;(9,756</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">m&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;(9,059</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)m</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;(8,436</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)m</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;(14,425</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)m</font></td>
</tr>
<tr>
  <td colspan="13"><hr noshade size=1></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr align="left">
   <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Refer to &#147;Non-GAAP Information&#148; on pages 47 to 48 for a reconciliation of this non-GAAP measure to the most comparable GAAP measure and a discussion of
this measure.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005 net loss includes the cumulative effect of accounting changes related to intangible assets and post employment benefits that increase net loss by &pound;6,372
million or 9.63p per ordinary share. Net loss and shareholders&#146; equity for 2005, 2004, 2003 and 2002 have been restated to give effect to the modified retrospective adoption of SFAS No. 123 (Revised 2004). See note 38 to the Consolidated
Financial Statements for further details on these changes in accounting policy.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002 net loss includes the cumulative effect of accounting changes related to derivative financial instruments reducing net loss by &pound;17 million or 0.02p per
ordinary share.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts reported refer to continuing operations.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note 8 to the Consolidated Financial Statements, &#147;(Loss)/earnings per share&#148;. Earnings per American Depository Share (&#147;ADS&#148;) is calculated
by multiplying earnings per ordinary share by ten, the number of ordinary shares per ADS. Dividend per ADS is calculated on the same basis.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The final dividend for the year ended 31 March 2006 was proposed by the directors on 30 May 2006.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the purposes of calculating these ratios, earnings consist of profit before tax adjusted for fixed charges, dividend income from associated undertakings, share
of profits and losses from associated undertakings and profits and losses on ordinary activities before taxation from discontinued operations. Fixed charges comprise one-third of payments under operating leases, representing the interest element of
these payments, interest payable and similar charges and preferred share dividends.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The deficits for the 2002, 2003 and 2004 financial years are presented on the same basis as the Form 20-F for the year ended 31 March 2004. These deficits have not
been restated for the effect of discontinued operations, because the UK GAAP information, which forms the basis of the US GAAP information presented, has not been restated. Even if any such adjustments were made, it is expected that the ratio of
earnings to fixed charges would still show a deficit.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</FONT></td>
  </tr>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Group at a Glance</font></b>
</p>
<p>
<font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone is the world&#146;s leading mobile
<br>telecommunications company
with
<br>
mobile operations in 26
countries<br>
around the world and Partner
Network<br>
</font><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">agreements
    in a further 32 countries.</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr bgcolor="#cc3333">
    <td>&nbsp;</td>
    <td width="24%"><div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Germany</font></b></div></td>
    <td width="2%">&nbsp;</td>
    <td width="25%"><div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Italy</font></b></div></td>
    <td width="25%"><div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Spain</font></b></div></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr bgcolor="#cc3333">
    <td>&nbsp;</td>
    <td><div align="center"><img src="b826353-20fx6x1.jpg" border=0></div></td>
    <td>&nbsp;</td>
    <td><div align="center"><img src="b826353-20fx6x2.jpg" border=0></div></td>
    <td><div align="center"><img src="b826353-20fx6x3.jpg" border=0></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr bgcolor="#cc3333">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td width="2%" bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Closing
    proportionate <br>
    customers <br>
    (&#145;000)</font></b></td>
   <td width="2%" bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,191</font></b></td>
   <td width="7%" align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="2%" align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,490</font></b></td>
   <td width="7%" align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="2%" align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,521</font></b></td>
   <td width="9%" align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td width="2%" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Average
    proportionate <br>
    customer growth <br>
    (%)</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8.4%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.8%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18.5%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><font size="2"><b><font color="#FFFFFF" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3G devices <br>
    (&#145;000)</font></b></font></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,025</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,250</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Average
         <br>
    monthly <br>
    ARPU</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&euro;23.3</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&euro;28.5</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&euro;35.6</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-voice
    revenue <br>
    as a percentage of <br>
    service revenue (%)</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.2%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16.7%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14.4%</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
   <td bgcolor="#cc3333"><hr noshade size=1></td>
   <td bgcolor="#cc3333"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td bgcolor="#cfe7f0"><hr noshade size=1></td>
   <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
</td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue
         <br>
    (&pound;m)</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,754</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,363</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,995</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><font color="#FFFFFF" size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating</font> <b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
    (loss)/profit<sup>(1)</sup></font> <font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
    (&pound;m)</font></b></b></font></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,904)</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,928)</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
    assets <br>
    (&pound;m)</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25,029</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,310</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,039</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cfe7f0"><hr noshade size=1>
  </td>
</tr>
<tr>
  <td bgcolor="#cc3333">&nbsp;</td>
   <td bgcolor="#cc3333"><b><font color="#FFFFFF" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Employees
         <br>
    (000s)</font></b></td>
   <td bgcolor="#cc3333"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,124</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,123</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,052</font></b></td>
   <td align="right" bgcolor="#cfe7f0">&nbsp;</td>
   <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#cc3333"><hr noshade size=1></td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td bgcolor="#cc3333"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cc3333"><hr noshade size=1>
  </td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="left">
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr align="left">
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        operating (loss)/profit in Germany, Italy and Other Mobile Operations
        is stated after impairment
charges of &pound;19,400 million, &pound;3,600 million and &pound;515 million,
respectively.</font> </td>
  </tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%" height="12"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p5"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Highlights</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="60%"><div align="right"><img src="b826353-20fx7x1.jpg" border=0></div></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>&nbsp;</p>
<p>&nbsp; </p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%" bgcolor="#881b1a">&nbsp;</td>
    <td bgcolor="#881b1a"><div align="center"><b></b><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK</font></b></div></td>
    <td width="2%" bgcolor="#881b1a">&nbsp;</td>
    <td bgcolor="#881b1a"><b></b>      <div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US</font></b></div>
    </td>
    <td width="2%" bgcolor="#ca2327">&nbsp;</td>
    <td bgcolor="#ca2327"><div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other
    Mobile Operations</font></b> </div></td>
    <td width="2%" bgcolor="#ca2327">&nbsp;</td>
    <td bgcolor="#e53126"><div align="center"></div>
      <div align="center"><b><font color="#FFFFFF" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
    Mobile</font></b> </div></td>
    <td width="2%" bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#881b1a">&nbsp;</td>
    <td bgcolor="#881b1a">
<div align="center"><img src="b826353-20fx7x2.jpg" border=0></div></td>
    <td bgcolor="#881b1a">&nbsp;</td>
    <td bgcolor="#881b1a">
<div align="center"><img src="b826353-20fx7x3.jpg" border=0></div></td>
    <td bgcolor="#ca2327">&nbsp;</td>
    <td bgcolor="#ca2327">
<div align="center"><img src="b826353-20fx7x4.jpg" border=0></div></td>
    <td bgcolor="#ca2327">&nbsp;</td>
    <td bgcolor="#e53126">
<div align="center"><img src="b826353-20fx7x5.jpg" border=0></div></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td width="4%" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16.304</font></b></font></div></td>
    <td width="6%" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="2%" align="center" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,530</font></b></font></div></td>
    <td width="6%" align="center" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69,535</font></b></font></div></td>
    <td width="6%" align="center" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">170,571</font></b></font></div></td>
    <td width="6%" align="center" bgcolor="#e8f6f8">&nbsp;</td>
    <td width="2%" bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7.8%</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17.0%</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34.0%</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18.8%</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,033</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,511</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,721</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;24.0</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2"><b></b></font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$51.4</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.3%</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8.9%</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14.3%</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17.0%</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,048</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,250</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,137</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,008</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,203)</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
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    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,486</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,898</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,937</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">111,722</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#ccffff"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ccffff"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#cfe7f0"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cfe7f0"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e8f6f8"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e8f6f8"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,620</font></b></font></div></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#ccffff"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></div></td>
    <td align="right" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#881b1a"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cfe7f0"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22,895</font></b></font></div></td>
    <td align="right" bgcolor="#cfe7f0"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ca2327"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e8f6f8"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57,442</font></b></font></div></td>
    <td align="right" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#881b1a"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#ca2327"> <hr noshade size=1></td>
    <td bgcolor="#e53126"> <hr noshade size=1></td>
    <td bgcolor="#e53126"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#e53126"> <hr noshade size=1></td>
    <td bgcolor="#e53126">&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Group Plc </font><font color="#656565" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Annual
      Report 2006</font></td>
    <td width="3%"><font color="#e82417" size=1
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p6"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="25%"><b><font color="#e82417" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chairman&#146;s
      Statement</font></b> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><img src="b826353-20fx8x1.jpg" border=0></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Lord
      MacLaurin of Knebworth, DL</font></b> </font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
  <p><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">It
    has been my privilege<br>
    </font><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">to
    be the Chairman of a <br>
    company that has proved <br>
    to be one of the outstanding international success stories <br>
    of the last decade.</font> </p>
</div>
<div style="float: right; width: 48%">
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">My last year as Chairman of Vodafone has been a watershed in the history of your Company. We have been undergoing significant change whilst operating in the most challenging market
environment the telecommunications sector has seen. Nevertheless, our ability to deliver good growth in the face of increasing competition reflects the unique characteristics of our business, compared to many other mobile operators, particularly the
benefits derived from our increasing exposure to faster-growing markets and the opportunity to generate further benefits from our scale.</font></p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We maintained strong customer growth across many of our markets and grew our proportionate mobile customer base to over 170 million, representing organic growth of 15% since last
year. Importantly, we achieved our 10 million 3G target, which included Japan, during March, which was ahead of plan.</font></p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Over the year, we have announced total returns to shareholders of &pound;19.2 billion. We have purchased over 4.8 billion shares in the Company at a cost of &pound;6.5 billion and are
paying out &pound;3.7 billion in dividends for the year, including the proposed final dividend of 3.87 pence per share. We are also returning &pound;9.0 billion to shareholders, including &pound;6.0 billion following the sale of our Japanese
business. Full details are in the documentation accompanying this Report.</font></p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When I
    became Chairman in July 1998 we had fewer than 6 million customers in </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12
    countries producing some &pound;2.5 billion of turnover. In the summer of
    1999, we acquired AirTouch of the US, followed in 2000 by the acquisition
    of Mannesmann in Germany. This was a period of huge expansion which formed
    the basis of the transformation of Vodafone into the world&#146;s leading
    mobile telecommunications group that has equity interests in 26 countries
    across five continents with over 170 million proportionate customers worldwide,
    as well as 32 partner networks, generating turnover this year from our ongoing
    businesses of over &pound;29 billion. Not only have we extended our geographic
    reach but we have also transformed our industry by becoming a leader in innovation,
    introducing groundbreaking services such as Vodafone live! with 3G, thereby
    setting standards for the mobile industry as a whole. It has been a remarkable
    achievement.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p7"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Strategy</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><div align="center"><img src="b826353-20fx9x1.jpg" border=0></div></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>&nbsp; </p>
<div style="float: left; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">However,
  the Group now faces many challenges, particularly of competition, regulation
  and new technology. During the year, we conducted, in the face of these challenges,
  a review of the future growth prospects for the Group and our analysis indicated
  a lower view of growth, particularly in the medium to long term, and led to
  an impairment of the Group&#146;s goodwill by &pound;23.5 billion, the majority
  of which is attributable to Vodafone Germany. This charge does not impact this
  year&#146;s reported cash flows or distributable reserves, out of which we are
  making returns to shareholders.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">However,
  in this challenging market the Chief Executive has spent a great deal of time
  reviewing the management structure and future planning required to take the
  Company forward. In April he announced his new management team and in May they
  produced a clear forward-looking strategy. I believe that through this statement
  the Chief Executive sets out a clear vision for the future. I congratulate him
  on these changes and wish him and his impressive team well.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">It has been
  my privilege to be the Chairman of a company that has proved to be one of the
  outstanding international success stories of the last decade. The development
  and expansion of the Group has been made possible by the excellence of the management
  team whose flair and vision has enabled us to identify international opportunities
  for profitable growth while at the same time introducing technological advances
  to enhance the mobile experience for our customers. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">It was announced
  earlier this year that Sir Julian Horn-Smith had decided to retire from the
  Board following the Annual General Meeting in July. Julian has been with Vodafone
  for 22 years and a Board member for 10 years. He has had an outstanding career,
  being a major contributor to the creation of the UK network and subsequently
  leading the early development of our international presence. More recently he
  was Group Chief Operating Officer and then Deputy Chief Executive, with responsibility
  for our affiliates and business development. I am sure all shareholders will
  join with me in wishing him well for the future.</font> </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter Bamford,
  Chief Marketing Officer, who left the Company in early April, was instrumental
  in developing our brand both within the UK and internationally and developing
  a number of major initiatives, including the launch of Vodafone live! with 3G.
  I wish him well and thank him for his contribution to the success of the Company.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At the AGM,
  we say farewell to Paul Hazen, our Deputy Chairman, who has served with distinction
  as a non-executive director since 1999. We also say goodbye to Penny Hughes,
  a fine non-executive director for eight years and who was an exceptional Remuneration
  Committee Chair for five years. Her contribution cannot be overstated. Paul
  and Penny leave with our best wishes. Taking Paul&#146;s place as Deputy Chairman
  and senior independent director will be John Buchanan, who has been a non-executive
  director since April 2003, shortly after his retirement from BP p.l.c. I am
  sure that John will discharge his new duties very effectively. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
  year, we welcomed two new non-executive directors to the Board. In September,
  Philip Yea, Chief Executive Officer of 3i Group plc, was appointed and he was
  joined in November by Anne Lauvergeon, the Chairman of the Executive Board of
  AREVA, the leading French energy company. On 1 May, we welcomed Anthony Watson
  to the Board. Until his recent retirement, he was Chief Executive of Hermes
  Pensions Management Limited. I know that their collective experience in their
  different areas of business will be of great benefit to the Company.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finally
  I come to my own retirement. As I have said, it has been a great privilege for
  me to have been Chairman of a truly outstanding British company. I have, however,
  been particularly saddened this year by the nature of some of the media coverage
  and particularly by the suggestion of boardroom splits. There are no factions
  within the Board and any claim that your Board is not united is unfounded. I
  leave with the knowledge that Vodafone, which is now very different to the company
  which I first chaired, is well placed to continue to enjoy an exciting and profitable
  future. I wish Sir John Bond, my successor, Arun Sarin, your Chief Executive,
  and everyone at Vodafone the very best for the future and thank you all for
  your support during the last eight years as your Chairman.</font> </p>
<p>
<img src="b826353-20fx9x2.jpg" border=0>
<br>
<font size="2"><b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Lord
    MacLaurin of Knebworth, DL </font><font
face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
    Chairman</font></b> </font></p>
  </div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Group Plc </font><font color="#656565" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Annual
      Report 2006</font></td>
    <td width="3%"><font color="#e82417" size=1
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p8"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#e82417" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chief Executive&#146;s Review</font></b>
</p>
<p>
<img src="b826353-20fx10x1.jpg" border=0>
<br>
<font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b><font size="2">Arun Sarin</font></b></font><font size="2"><b>
</b></font></p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We delivered another set<br>
of robust financial and<br>
operational results amidst a<br>
more competitive landscape<br>
and announced returns to<br>
shareholders over the year<br>
of &pound;19.2 billion.</font>
</p></div>
<div style="float: right; width: 48%">
<p><b><font color="#e82417" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Review of the year<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have delivered another year of robust financial performance against a backdrop of increasing competition and regulation, meeting our expectations for revenue, EBITDA margin and
free cash flow.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proportionate customer growth was strong with nearly 22 million organic net additions in the year taking the closing proportionate customer base to over 170 million across 26
countries. Our unrivalled presence provides the platform for the next stage of our strategy.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These results have
enabled us to significantly increase returns to shareholders. We have increased
dividends per share by 49% to 6.07 pence, purchased &pound;6.5 billion of our shares
and announced a special distribution of &pound;9.0 billion. </font></font>
</p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial review<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Statutory
revenue
increased by 10% to &pound;29.4 billion, with over 9% growth in our mobile operations.
Excluding the net benefit from acquisitions, disposals and exchange rate movements,
we achieved organic revenue growth of 7% in mobile and 8% for the Group as a
whole. Strong performances in Spain and several of our emerging markets, including
South Africa, Egypt and Romania, helped offset lower growth this year in
several of our more established markets. Notwithstanding this lower growth, we
outperformed substantially all of our principal competitors in our major markets
on revenue and EBITDA growth.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our focus on profitability delivered an 11% organic increase in adjusted operating profit, with 13% growth in total. The competitive environment led to a necessary increase in net
customer acquisition and retention costs but this was mitigated by our ongoing success in delivering operating efficiencies. A key part of this growth has been the strong overall performance from our associates, increasing by over 20% this year, and
in particular from Verizon Wireless in the US, growing by nearly 28% as it consolidated its market leadership.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital expenditure
on fixed assets was &pound;4.0 billion as we continue to invest in broadening our 3G presence. Free cash flow of &pound;6.4 billion was slightly lower than last
year as expected, with increases in capital expenditure and lower dividends from Verizon Wireless offsetting an increase of &pound;1.0
billion in net cash flow from operating activities. </font></font>
</p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operational highlights<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have been focused on six strategic goals, including delighting our customers and leveraging scale and scope.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A core part of delighting our customers is our 3G offering. When we launched 3G late in 2004, we targeted 10 million consumers by the end of March 2006, including Japan. We reached
this during March, shortly before we agreed to sell our Japanese operation.</font>
</font></p></div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p9"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Strategy</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td><div align="center"><img src="b826353-20fx11x1.jpg" border=0></div></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We
        have updated our strategy<br>
to reflect our changing environment</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G brings an enhanced mobile experience to our customers, who want more speed, greater personalisation and richer content, and provides the platform for our future growth. For
consumers, we launched mobile TV capability during the year and will further enhance our music offering during 2006 with the launch of Vodafone Radio DJ, a personalised, interactive radio service streamed to both 3G phones and PCs.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For our business customers, we increased the number of mobile email solutions and range of email devices available. 3G broadband through HSDPA technology was launched in the year
offering an enhanced data experience through greater speeds than 3G and faster access to the network. This will improve our already successful Vodafone Mobile Connect offering for laptop users, who have more choice with mobile capability now being
built in to the laptop. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Another key part of delighting our customers is measuring customer satisfaction and brand preference. With rising customer expectations and a tougher competitive environment, we are
pleased that we continue to outperform our principal competitors in terms of customer satisfaction and that customers continue to show preference for the Vodafone brand.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The second strategic area of focus has been leveraging our scale and scope which delivers benefits through our One Vodafone programme, details of which we set out last year.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We are beginning to deliver real benefits in network supply chain management, as standardised designs lead to a reduced number of vendors and better terms. Our shared service
platforms, which centrally host services such as Vodafone live!, are also now established. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our strategic goals are ultimately designed to deliver shareholder value. With respect to Japan, given the relative competitive position of the business there, the reduced prospects
for superior long term returns and an attractive offer from SoftBank, we decided to sell our 97.7% stake based on a value for the business of &pound;8.9 billion. The sale completed in April, with Vodafone receiving &pound;6.9 billion in cash,
&pound;6.0 billion of which we are returning to shareholders as part of the &pound;9.0 billion special distribution.</font>
</font></p>
<p><font size="2">
<b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Rapidly changing environment<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Overall, we have performed strongly during the last year, meeting our expectations and delivering on our strategic objectives. We have continued to outperform our principal
competitors on revenue and EBITDA growth, as well as customer satisfaction. We have established a strong brand around our customer base and increased returns to shareholders significantly. However, our marketplace is changing and we need to change
to ensure we can leverage our unique position and continue to outperform our competitors.</font>
</font></p></div>
<div style="float: right; width: 48%">

<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are several key drivers to the changing environment. Competition is increasing not only from established mobile operators but also from new entrants, particularly mobile virtual
network operators (MVNOs). There are also new types of competitor. Established fixed line operators are increasingly combining fixed and mobile service offerings. In addition, internet based companies are extending their services to include
telecommunications. All of these factors are putting pressure on pricing.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The regulatory environment also remains challenging, with continued regulator-imposed rate reductions on incoming calls across many markets, ongoing pressure to provide access to
MVNOs to our networks and a high level of focus on the costs of roaming.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Developments in technology also mean that our customers have far more choice and have changing communication needs, but at the same time they demand simplicity and value for money. In
addition to the core benefits of mobility, customers want greater personalisation, faster data speed and richer applications through services centred on the home and the office. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finally, our growth historically has principally come from developed markets, particularly in Europe. With average penetration now around 100%, these markets are maturing and
delivering lower growth. Whilst growth in these markets has slowed, significant growth is now coming from emerging markets where average penetration is below 30%. This is creating greater diversity between our markets than previously. Transactions
over the last year in Turkey, South Africa, India and Romania have combined with existing operations in markets such as Egypt to provide us now with greater exposure to this growth potential.</font>
</font></p>
<p><font size="2">
<b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Developing our strategy<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These factors require our strategy to evolve so that we can continue to maintain our strong performance and deliver value to customers and shareholders. We have established five key
strategic objectives: </font></font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="3%" valign="top"><font color="#e82417" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In Europe, to focus on both cost reduction and revenue stimulation;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#e82417" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To deliver strong growth in emerging markets;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#e82417" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To satisfy our customer needs and extend our current mobile only offering by innovating and delivering total communications solutions;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#e82417" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To actively manage our portfolio to maximise returns; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#e82417" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To align our financial policies regarding capital structure and shareholder returns to support our strategy.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p10"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#e82417" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chief
Executive&#146;s Review<br>
</font></b><font color="#e82417" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>
<p>&nbsp;</p>
<p align="center">
  <img src="b826353-20fx12x1.jpg" width="100%" border=0></p>
<p>&nbsp;
</p>
<div style="float: left; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In order to deliver on these objectives, we have reorganised ourselves into three key business units. </font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In our European businesses, where competition is most intense, we will be focused on leveraging our regional scale to deliver cost reduction and revenue stimulation.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The principal focus in the Eastern Europe, Middle East, Africa, Asia Pacific and Affiliates (EMAPA) region is to deliver strong growth from our businesses in emerging markets.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The new objective of our third business unit, New Businesses, is to enable us to serve the total communications needs of our customers by taking advantage of evolving technology and
new opportunities to deliver new services. </font></font>
</p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cost reduction<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our primary objective here is to leverage our regional scale and reduce our cost structure in Europe through several approaches in order to maintain our competitiveness. </font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We will outsource further, particularly for IT development of billing and customer management systems, as a key means to reduce our costs. We will also continue to drive scale
benefits, either at a global level, in areas such as network supply chain management as we achieve greater standardisation across the Group, or regionally, such as through the establishment of regional data centres to support our European
operations. As the size of the Group evolves, we need to ensure the appropriate balance between local and group, particularly in respect of central functions, and this is expected to result in over 400 fewer group positions.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue stimulation<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In Europe, our customers use their mobiles on average for only four minutes a day and approximately two-thirds of voice traffic continues to travel across fixed lines. We therefore
aim to stimulate additional voice usage and substitute fixed line usage for mobile in a way that enhances both customer value and revenue.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For our consumers, we will seek to enhance revenues by continuing to deliver innovative bundles and tariffs to stimulate usage, building on success in areas such as 3G bundles,
targeted promotions, family plans that focus on community groups and roaming through Vodafone Passport.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We are already targeting fixed to mobile substitution in the home through offerings such as Vodafone Zuhause in Germany and Vodafone Casa in Italy and aim to target office
communications by building on our success in business with leading edge services, such as Oficina Vodafone in Spain, and applications through the benefits of broadband.</font>
</font></p></div>
<div style="float: right; width: 48%">
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Deliver strong growth
in emerging markets<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A source of growth is through emerging markets. Our focus here is to build on our strong track record of creating value in emerging markets, having delivered strong performances over
time in markets such as Egypt and South Africa. Our aim is to outperform not only our competitors but also our acquisition business plans. For example, since we achieved control in Romania last year, the business has performed strongly and ahead of
our original expectations. </font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We will seek selective opportunities to increase our emerging markets footprint as well as taking opportunities to increase our stakes in existing markets, with a view to gaining
control where possible over time.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Delivering our customers&#146; total
communication needs<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers have access to new technologies, devices and services. As a complement to mobility, they want Vodafone to provide a number of new services within the home and the
office.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We will extend our reach into the home and the office to deliver richer business applications and integrated fixed and mobile services, such as higher speed internet access. We will
use technologies such as HSDPA, DSL and WiFi to do this. Later this year, we will be enhancing our Vodafone Zuhause offering to incorporate DSL.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Developments in technology will also enable us to provide integrated mobile and PC offerings to give customers a consistent experience whether they are at home or on the move, with
core services such as VOIP and instant messaging. We also aim to extend our business model to generate revenue from advertising in ways that customers find attractive.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We will continue to pursue a mobile centric approach, focusing on the core benefits to customers of mobility and personalisation, and will resell fixed line technologies only
according to customer needs.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Actively managing our portfolio<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We seek to invest only where we can generate superior returns for our shareholders in markets that offer a strong local position, with focus on specific geographic regions. It is our
policy to apply strict investment criteria to ensure that transactions yield a return above the cost of capital within three to five years and overall create substantial value for our shareholders. Equally, we will consider exiting businesses which
do not meet our performance requirements or provide an opportunity to create shareholder value.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There has been much speculation about our position in the US. Verizon Wireless is the market leader on nearly all key metrics and has significant local and regional scale, with over
50 million customers. We will always consider the most appropriate way to deliver shareholder value. However, we expect continued strong growth in the US and are therefore happy to remain with our existing stake. </font></font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Strategy</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="left"><img src="b826353-20fx13x1.jpg" border=0></div></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font color="#e82417" size=6 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We
        have a significant opportunity to deliver<br>
value to both our customers and shareholders.</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<div style="float: left; width:48%">
<p>
<b><font color="#e82417" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial implications<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our One Vodafone programme, which primarily has been focused on our mature mobile markets in Europe, delivers efficiencies in operating costs, being payroll and other operating
expenses, and in capital expenditures. We have previously targeted keeping these total costs broadly stable between the 2004 and 2008 financial years, with operating costs expected to rise at a lower rate than revenue. Through our new strategic
objectives, we now expect underlying operating costs alone to be broadly stable between the 2006 and 2008 financial years for the total of our European operations and central costs.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On the same basis, we continue to target expenditures on fixed assets to be 10% of revenue for the 2008 financial year. We also continue to expect at least 1% additional revenue
market share between the 2005 and 2008 financial years, measured against our established principal competitors in Germany, Italy, Spain and the UK. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our strategic changes also have implications on returns to shareholders and our capital structure. We have previously indicated an intention to pay out approximately 50% of adjusted
earnings per share for the 2007 financial year onwards. We now consider it appropriate to target a 60% payout ratio, with effect for the full 2006 financial year, with a view to growing the dividend per share in line with underlying earnings per
share thereafter. Dividends per share have, therefore, increased by 49% to 6.07 pence for the year.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As we enter a new
phase in our development, we believe that the most appropriate capital structure,
which meets the needs of both the business and shareholders, is one that reflects
a higher level of gearing. The incremental borrowing capacity this provides enables
an additional return of &pound;3.0 billion to shareholders, which will be combined with the &pound;6.0
billion return of cash from the sale of Japan in early August. As a result, we
do not currently plan any further share purchases or other one-off returns to
shareholders.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This &pound;9.0 billion one-off return, together with the &pound;6.5 billion share purchase programme completed during the last year and &pound;3.7 billion of dividends, gives an
overall return to shareholders of &pound;19.2 billion.</font>
</font></p>
<p><font size="2">
<b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Prospects
for the year ahead<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">While
we are delivering on cost reduction, revenue stimulation and emerging market
growth in the shorter
term, the potential benefits from serving our customers&#146; total
communications needs will materialise over a longer timeframe.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the year ahead, we expect operating conditions to remain challenging, with a continued intense competitive environment and further regulatory pressure, but nevertheless see
continued growth in Group revenue. We are anticipating higher customer investment, pricing pressures and further termination rate reductions to impact growth in adjusted operating profit, however initiatives to deliver further cost efficiencies are
expected to mitigate this effect. </font></font>
</p></div>
<div style="float: right; width:48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital expenditure
on fixed assets is expected to be in the range of &pound;4.2 billion to &pound;4.6 billion, higher than last year due to the investment needs for recent
acquisitions and the wider rollout of HSDPA. Free cash flow is anticipated to be in the range of &pound;4.0 billion to &pound;4.5 billion. Higher tax payments, including around &pound;1.2
billion, with interest costs, from settling some long standing disputes, increased
capital expenditure and higher financing costs from our increased borrowing,
are expected to offset continued growth in underlying operating cash flows. </font></font>
</p>
<p><font size="2">
<b><font color="#e82417" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Executing our strategy<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have a good track record of delivering against our plans and demonstrating outperformance against the majority of our principal competitors. However, our environment is changing
and we need to adapt to ensure we continue to meet our customer needs and deliver superior returns to shareholders.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have established clear strategic objectives: cost reduction and revenue stimulation in Europe; innovating and delivering total communications solutions; delivering strong growth in
emerging markets; actively managing our portfolio to maximise returns; and aligning our financial policies to our strategy. We have reorganised the business as we begin to deliver against these objectives. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone is well placed to execute on this strategy. Our scale makes us the clear partner of choice for others and we have a track record for innovation. We have a strong brand and an
unrivalled customer reach. As customer demands evolve and technology converges, we remain focused on the core benefits of mobility and personalisation as we seek to deliver total communications solutions. We have a significant opportunity to deliver
value to both our customers and shareholders. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On a final note, on behalf of the Board, I would like to express sincere thanks to Ian MacLaurin, who is retiring as Chairman, for his service and support to the Company since 1997.
We wish him continued success.</font>
</font></p>
<p>
<img src="b826353-20fx13x2.jpg" border=0><br>
<b><font color="#e82417" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Arun Sarin<br>
</font></b><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chief Executive</font></b></p></div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p12"></a>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="contents1"></a></font>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="float: left; width:48%">
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contents</font></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td align="center" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Page</font></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td width="1%" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p12"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business Overview</font></a></td>
   <td width="10%" align="center" bgcolor="#ccffff"><a href="#p12"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></a></td>
   <td width="1%" bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p12a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Introduction</font></a></td>
   <td align="center" bgcolor="#ccffff"><a href="#p12a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></a></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p12b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Mobile
      Telecommunications</font></a></td>
   <td align="center" bgcolor="#ccffff"><a href="#p12b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></a></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p19"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Non-mobile
      Telecommunications</font></a></td>
   <td align="center" bgcolor="#ccffff"><a href="#p19"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></a></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p19"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; History
      and Development of the Company</font></a></td>
   <td align="center" bgcolor="#ccffff"><a href="#p19"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></a></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
   <td bgcolor="#ccffff"><a href="#p21"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Regulation</font></a></td>
   <td align="center" bgcolor="#ccffff"><a href="#p21"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></a></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
</table>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business Overview</font></b>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Introduction<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
  Group Plc is the world&#146;s leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States
through the Company&#146;s subsidiary undertakings, joint ventures, associated
undertakings and investments.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s mobile subsidiaries and joint venture in Italy operate under the brand name &#147;Vodafone&#148;. In the United States, the Group&#146;s associated undertaking
operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with a number of its associated undertakings and with network operators in countries where the Group does not hold an equity stake. Under
the terms of these Partner Market agreements, the Group and its Partner Markets co-operate in the development and marketing of certain services, often under dual brand logos. This has expanded the Group&#146;s
global footprint in Europe, Asia
Pacific and, most recently, South America.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group provides
a wide range of voice and data mobile telecommunications services, including
text messages (&#147;SMS&#148;), picture messages (&#147;MMS&#148;) and other data
services, and is continually developing and enhancing service offerings, particularly through third generation (&#147;3G&#148;) mobile technology which is being deployed in the majority of the Group&#146;s
operations. Services are provided to both consumers and corporate customers,
through a variety of both prepaid and contract tariff arrangements.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s mobile services are currently offered over a Global System for Mobile Communications (&#147;GSM&#148;) network, on which a General Packet Radio Service
(&#147;GPRS&#148;) service is also provided and, in certain operations, over a Wideband Code Division Multiple Access (&#147;W-CDMA&#148;) 3G network. The Group&#146;s
discontinued operation in Japan operated a different technology to GSM. Where
licences have been issued, the Group has secured 3G licences in all jurisdictions
in which it operates through its subsidiary undertakings and continues to roll
out mobile 3G network infrastructure. Vodafone offered 3G services in 11 of its
controlled operations at 31 March 2006.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group is managed
and organised by business and geography. The Group has mobile and fixed line
telecommunications businesses, with the latter referred to as Other Operations.
Vodafone&#146;s principal mobile operations are located in Germany, Italy, Spain, the UK and the US with the Group&#146;s Other Mobile Operations covering operations in Europe, the Middle East, Africa and Asia Pacific. In addition, there are a
number of central functions which provide services to the mobile operations and allow the Group to leverage its scale and scope and manage risk effectively. Other Operations principally consists of the Group&#146;s controlling interest in a fixed
line telecommunications business in Germany. On 1 May 2006, changes to the organisational structure were effected with the objective of focusing the Group&#146;s
mobile businesses according to different market and customer requirements.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
ordinary shares are listed on the London Stock Exchange and the Company&#146;s ADSs are listed on the New York Stock Exchange (&#147;NYSE&#148;). The Company had a total market capitalisation of approximately &pound;72
billion at 26 May 2006, making it the fifth largest company in the Financial
Times Stock Exchange 100 index and the twenty second largest company in the world
based on market capitalisation at that date.</font>
</font></p>
</div>
<div style="float: right; width:48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile Telecommunications<br>
</font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local operations<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company has equity interests in 26 countries, through its subsidiary undertakings,
  joint ventures, associated undertakings and investments. Partner Market arrangements
  extend the
Group&#146;s footprint to a further 32 countries.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006,
based on the registered customers of mobile telecommunications ventures in which
it had equity interests at that date, the Group had approximately 170.6 million
customers, calculated on a proportionate basis in accordance with the Group&#146;s percentage interest in these ventures, and 518.0 million registered venture customers. The table on the following page sets out a summary of the Company&#146;s
worldwide mobile operations at 31 March 2006 and venture customer growth in the year then ended (the &#147;2006 financial year&#148;).</font>
</font></p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Competition<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group faces a high degree of competition in each of its geographic markets. It is subject to indirect competition from providers of other telecommunications services in the
domestic markets in which it operates in addition to direct competition from existing mobile telecommunications network operators and MVNOs who do not operate a mobile telecommunications network. There are also new types of competitors, such as
fixed line operators offering combined fixed and mobile service offerings, and internet based companies extending their services to include telecommunications. Competitive pressures have adversely impacted the level of customer churn, although this
has been managed by reductions in tariffs and a continued focus on customer acquisition and retention initiatives.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group expects
that competition will continue from existing operators as well as from a number
of new market entrants, including those arising following the award of new 3G
licences and MVNOs. The scope of this increased competition, and the impact on
the results of operations, is discussed further in &#147;Performance &#150; Risk Factors, Trends and Outlook&#148;.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Many of Vodafone&#146;s key markets are highly penetrated with over 100% penetration rates in some, largely due to a number of customers owning more than one subscriber identity
module (&#147;SIM&#148;), which is, broadly, the Group&#146;s basis for defining
a customer. The Group has estimated penetration rates at 31 December 2005 for
its principal markets as follows:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Market</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Penetration (%)</font></td>
  </tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</font></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98</font></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">109</font></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">69</font></td>
  </tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A summary of the significant mobile competitors in its markets at 31 March 2006 is also provided in the following table.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></TD>
  </TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p13"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Summary
of Group mobile telecommunications businesses at 31 March 2006<sup><font size="1">(1)</font></sup></font></b></font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="right">
   <td align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Registered</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Venture</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Venture</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">proportionate</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Registered</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">customers</font></td>
   <td width="1%" align="left"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">customer</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">customers</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">prepaid</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country by region<sup>(2)</sup></font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ownership</font></td>
   <td width="1%" align="left"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(&#146;000)</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth (%)</font></td>
   <td width="1%" align="left"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(&#146;000)</font></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">prepaid (%)</font></td>
   <td width="1%" align="left"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Names of significant mobile competitors</font></td>
   <td width="1%" align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(7)</sup></font></td>
</tr>
<tr align="right">
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><font size="1">&nbsp;</font></td></tr>
<tr align="right">
   <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Germany</font></b></td>
   <td width="6%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,191</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,191</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53.3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td width="30%"><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">E-Plus, O</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sub>2 </sub>, T-Mobile</font></font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Italy<sup><font size="1">(8)</font></sup></font></b></font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24,056</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,490</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">TIM, Wind, 3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Spain</font></b></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,521</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,521</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amena,
    Telef&oacute;nica M&oacute;viles, Xfera</font><font size="2"><sup></sup></font></td>
   <td width="1%" align="left"><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9)</font></sup>&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK</font></b></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,304</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,304</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61.1</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Orange, O</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sub>2</sub>, T-Mobile, 3, Virgin Mobile</font></font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US<sup><font size="1">(10)</font></sup></font></b></font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53,020</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.7</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,530</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.5</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">National operators</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11)</font></sup><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">: Cingular Wireless,</font></font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sprint Nextel, T-Mobile</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other mobile operations</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Albania</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">773</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.1</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">772</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">AMC</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Australia</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,177</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,177</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Optus, Telstra, 3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech Republic</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,214</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,214</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">47.5</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">T-Mobile, Eurotel Praha</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50.1</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,615</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">59.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,314</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">90.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">MobiNil</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,479</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,471</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cosmote, Q-Telecom, TIM</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,063</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,063</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pannon GSM, T-Mobile</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ireland</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,075</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,075</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73.7</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Meteor, O</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sub>2</sub>, 3</font></font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Malta</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">175</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">175</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Go Mobile</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,913</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,909</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">KPN Mobile, Orange, T-Mobile, Telfort</font><font size="2"><sup></sup></font></td>
   <td width="1%" align="left"><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12)</font></sup>&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New Zealand</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,068</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.4</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,068</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77.6</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Telecom</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,276</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,276</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79.7</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Optimus, TMN</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Romania</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,384</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.1</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,384</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Orange, Cosmorom, Zapp</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">TOTAL</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38,212</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34,898</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2></td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other joint ventures</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fiji</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">206</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">101</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">India</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,579</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,958</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">82.8</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hutch, Idea, BSNL/MTNL, Reliance Infocom,</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tata Teleservices</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Kenya</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,944</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,380</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Celtel</font><font size="2"><sup></sup></font></td>
   <td width="1%" align="left"><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13)</font></sup>&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Poland</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.6</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,779</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,918</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56.5</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Orange, ERA</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South Africa</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14)</font></sup></font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,520</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">51.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,968</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89.5</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cell C, MTN</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">TOTAL</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57,028</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123.6</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,325</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">82.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other associates and investments</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Belgium</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,338</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,085</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57.7</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">BASE (KPN), Mobistar (Orange)</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">China</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.3</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">260,645</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.9</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,523</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">China Netcom, China Telecom, China Unicom</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">France</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,282</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,612</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bouygues, Orange</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Switzerland</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,370</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,092</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39.0</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Orange, Sunrise, Tele2</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">TOTAL</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">286,635</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.5</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,312</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73.2</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">GROUP TOTAL</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">517,967</font></b></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24.2</font></b></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">170,571</font></b></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65.9</font></b></td>
   <td width="1%" align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td width="1%" align="left">&nbsp;</td>
</tr>
<tr align="right">
  <td align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td width="1%" align="left"><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr valign="top">
   <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr valign="top">
   <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The above information is presented for continuing operations only. Japan is classified as a discontinued operation and had 15,210,000 venture customers
and14,858,000 registered proportionate customers at 31 March 2006.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All controlled networks and the jointly controlled network in Italy operate under the Vodafone brand, with the exception of Vodafone Romania, which operates under
the dual brand Connex Vodafone. Networks in which the Company does not have a controlling interest operate under the following brands: Belgium &#150; Proximus; China &#150; China Mobile; Fiji &#150; Vodafone; France &#150; SFR; India &#150; Airtel;
Kenya &#150; Safaricom; Poland &#150; Plus GSM; South Africa &#150; Vodacom; Switzerland &#150; Swisscom Mobile; US &#150; Verizon Wireless.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All ownership percentages are stated as at 31 March 2006 and exclude options, warrants or other rights or obligations of the Group to increase or decrease
ownership in any venture as detailed in &#147;Financial Position and Resources &#150; Liquidity and Capital Resources &#150; Option agreements&#148; Ownership interests have been rounded to the nearest tenth of one percent.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See page 49 for a definition of a customer.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Venture customer growth is for the year to 31 March 2006.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepaid customer percentages are calculated on a venture basis at 31 March 2006.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Includes significant MVNOs which do not operate a mobile telecommunications network.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Italy is a joint venture.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licensed network operator, scheduled to commence commercial service during the 2007 financial year.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s ownership interest in Verizon Wireless is 45.0%. However, the Group&#146;s proportionate customer base has been adjusted for Verizon
Wireless&#146;s proportionate ownership of its customer base across all its network interests of approximately 98.6%, at 31 March 2006. In the absence of acquired interests, this proportionate ownership will vary slightly from period to period
depending on the underlying mix of net additions across each of these networks.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This is not a full list of US network operators. In the United States, in addition to the national operators shown, there are several regional and numerous local
operators.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Telfort was acquired by KPN Mobile during the financial year but still operates its own network.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Kenyan Government has awarded a third licence but the operator had not commenced service at 30 May 2006.</font></td>
</tr>
<tr valign="top">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 20 April 2006, the Group&#146;s ownership percentage increased to 50%.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p14"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business
      Overview</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<div style="float: left; width: 48%">
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Partner Markets</font></b><font size="2">
  <br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Partner Markets
  are operations in which the Group has entered into a partnership agreement
  with a local mobile operator, enabling a range of Vodafone&#146;s global products and
  services to be marketed in that operator&#146;s territory. The Group&#146;s
  Partner Market strategy enables the Group to implement its global services
  in new territories,
  extend its brand reach into new markets and create additional revenue without
  the need for equity investment.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Similar agreements
also exist with a number of the Group&#146;s associated undertakings.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details of the partnership
agreements in place as at 31 March 2006 are provided on the Group&#146;s website.</font></font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Licences and network infrastructure<br>
</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Licences</font></b><br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group is dependent on the licences it holds to operate mobile telecommunications
services. Further detail on the issue and regulation of licences can be found
in &#147;Regulation&#148;. The table below summarises the significant licences held by the Group&#146;s mobile operating subsidiaries and the Group&#146;s
joint venture in Italy:</font></font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="left" valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Date of</font></td>
</tr>
<tr align="left" valign="bottom">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country by</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licence</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licence expiry</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Network</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">commencement of</font></td>
</tr>
<tr align="left" valign="bottom">
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">region</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">type</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">type</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">commercial service</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
<tr>
   <td width="17%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="11%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td width="26%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2009</font></td>
   <td width="20%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td width="26%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">June 1992</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2020</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">January 2015</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 1995</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2021</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 2023</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 1995</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">April 2020</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 1991</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2021</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
<tr>
   <td colspan=3><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other mobile operators</font></b></font></td>
   <td align="left">&nbsp;</td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Albania</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">June 2016</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">August 2001</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Australia</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">June 2017</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">September 1993</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 2017</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 2005</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech Republic</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">November 2020</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2000</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2025</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2013</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">November 1998</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">September 2012</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 1993</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">August 2021</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 2004</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 2014</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">November 1999</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2019</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2005</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ireland</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2014</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 1993</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 2022</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2003</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Malta</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">September 2010</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 1997</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">August 2020</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#8211;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2013</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">September 1995</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2016</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New Zealand</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">July 1993</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2021</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">August 2005</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 2006</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">October 1992</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">January 2016</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2004</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></sup></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Romania</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2011</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSM/GPRS</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">April 1997</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2020</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">W-CDMA</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">April 2005</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td width="6%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td width="94%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Date relates to 1800MHz spectrum licence. Vodafone Netherlands and Vodafone Spain also have separate 900MHz spectrum licences which expire in March 2010 and
February 2020, respectively.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Indefinite licence with a one year notice of revocation.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Date refers to 900MHz spectrum licence. Various licences are held for 1800MHz licences, which are issued by specific regional regulators. The earliest expires in
June 2013 and the latest in March 2015.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Planned for the 2007 financial year.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There is an option to extend this licence for seven years.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone New Zealand owns three GSM 900 licences (2x21MHz) and one GSM1800 licence (2x15MHz). The GSM900 licences expire in November 2011, July 2012 and September
2021. The GSM1800 licence expires in March 2021.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal launched the Vodafone Mobile Connect 3G/GPRS data card in February 2004, and the launch of 3G voice services took place in May 2005.</font></td>
</tr>
</table>
</div>
<div style="float: right; width: 48%">
<p>
<b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Mobile network infrastructure</font></b><font size="2">
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Network infrastructure is fundamental to the Group being able to provide mobile services. The mobile network enables the Group&#146;s customers to place and receive voice calls and allows the Group to provide other services, such as text messaging.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When a voice call or data transmission is made on a mobile device, voice or data is sent from the device and transmitted by low powered radio signals to the nearest base station,
which in turn is connected to the Group&#146;s network. Each base station provides coverage over a given geographic area, often referred to as a cell. Cells can be as small as an individual building or as large as 20 miles across. Each cell is
equipped with its own radio transmitter and receiver antenna. This network of cells provides, within certain limitations, coverage over the service area. When a customer using a mobile device approaches the boundary of one cell, the mobile network
senses that the signal is becoming weak and automatically hands over the call to the transmission unit in the next cell into which the device is moving.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">If the voice call or data transmission is intended for delivery to another device which is not on the Vodafone network, the information is delivered through a public or private fixed
line telephone network or the internet.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In a second generation (&#147;2G&#148;) network, each cell contains a base station using a number of radio frequencies or channels. A group of base stations is connected to a base
station controller, which in turn is connected to a mobile switching centre and then via a gateway support node for access to a fixed line network or the internet.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In a 3G network, voice or data traffic is passed through a node B, being similar to a base station in a 2G network, to a radio network controller, which is then connected to a mobile
switching centre, similar to a 2G network.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Base stations and node Bs form a core element of a mobile network and an insufficient number of base stations can result in loss of service for customers. In addition, the correct
deployment of the right base stations is instrumental in achieving the network quality and coverage that are crucial to customer satisfaction.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2G</font>
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone operates
2G networks in all its mobile operating subsidiaries, principally through GSM
networks, offering customers services such as voice, text messaging and basic
data
services. In addition, all of the Group&#146;s controlled networks, with the exception of Albania, operate GPRS, often referred to as 2.5G. GPRS allows mobile devices to be used for sending and receiving data over an internet protocol
(&#147;IP&#148;) based network, enabling wireless access to data networks like the internet.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The GPRS data service offering includes internet and e-mail access allowing the customer to be always connected at download speeds slightly below a dial-up modem. Vodafone also offers
a great variety of services on its Vodafone live! portal, such as picture and video messaging, download of ringtones, news and many other services.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G</font>
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone&#146;s 3G networks, operating the W-CDMA standard, provide customers with mobile broadband data access, allowing data download speeds of up to 384 kilobits per second
(&#147;kbps&#148;), which is up to seven times faster than a dial-up modem. Vodafone
has expanded its service offering on 3G networks with high speed internet and
e-mail access, video telephony, full track music downloads, mobile TV and other
data services in addition to existing voice and data services.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group has secured 3G licences in all jurisdictions in which it operates through its subsidiary undertakings and in which such licences have been awarded to date, as well as in
Italy through its joint venture. Vodafone expects to participate in additional 3G licence allocation procedures in other jurisdictions in which it operates. No assurances can be given that the Group will be successful in obtaining any 3G licences
for which it intends to apply or bid.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Roll out of the 3G network infrastructure has continued throughout the 2006 financial year across the Group&#146;s mobile operations, with additions to property, plant and equipment
and computer software amounting to approximately &pound;4.0 billion during the financial year, including approximately &pound;1.1 billion expenditure on 3G network infrastructure. By the end of March 2006, over 33,000 node B&#146;s were in operation
in the Group&#146;s controlled operations and the Group&#146;s joint venture in Italy. In many of the Group&#146;s markets, Vodafone has achieved the leading position on 3G coverage and quality of service.</font></font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p15"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High
Speed Downlink Packet Access (&#147;HSDPA&#148;)</font><br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">After successful field tests, Vodafone has started to upgrade existing 3G networks with HSDPA.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">HSDPA enables data
transmission speeds of up to two megabits per second (&#147;Mbps&#148;) in the
first phase, with up to 14.4 Mbps achievable with later releases. This will provide
customers with faster access speeds than experienced on existing 3G networks.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">HSDPA is enabled through
the deployment of new software in the 3G radio network and expanding the processing
capabilities of the node B. Significant performance benefits are achieved by
using mechanisms that use the radio interface more effectively and are further
adapted to &#145;bursty&#146; packet based data traffic using IP. A Vodafone
Mobile Connect data card which supports HSDPA is available commercially, and
compatible
Vodafone live! handsets will be launched in the summer of 2006.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">HSDPA has been launched
commercially by a number of the Group&#146;s mobile operations, including Germany
and Portugal, and will be launched by other operating companies in the Group
during the 2007 financial year.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">While HSDPA focuses on downlink (network to mobile), Vodafone is also working on improving the data speeds in the uplink (mobile to network) to achieve speeds of up to 384kbps.</font></font></p>
<p><font size="2">
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Global services</font><br>
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Supply chain management</font></b><br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Handsets,
network equipment, marketing and IT services account for the majority of Vodafone&#146;s purchases, with the bulk of these purchases from global suppliers. The Group&#146;s
Global Supply Chain Management (&#147;GSCM&#148;) team is responsible for managing most of the Group&#146;s
relationships with these suppliers.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As GSCM has expanded
its scope of activities, Vodafone has seen significant progress in reducing per
unit capital and operational expenditures, by leveraging the Group&#146;s
scale.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSCM works with more
than 250 strategic suppliers. A consistent supplier performance management process
has been implemented across the Group&#146;s mobile operations and Vodafone is
actively managing a growing number of key suppliers in this way. Key suppliers are evaluated across six areas, covering aspects of financial stability, technological and commercial criteria, delivery and quality management requirements and corporate
responsibility. This process is also being applied to consider relationships with new suppliers, and recently several Chinese suppliers have been qualified for business through GSCM&#146;s
China Sourcing Initiative.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GSCM also strives
to identify best practice across the Group&#146;s mobile operations with the
aim of harmonising business processes, which will bring the benefits of further
reducing
procurement costs and reducing time to market.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Global suppliers are
required to comply with the Group&#146;s Code of Ethical Purchasing which sets out the labour and environmental standards the Group expects suppliers to meet. The
Code is based on the Group&#146;s values and international standards, including
the Universal Declaration of Human Rights and the International Labour Organisation
Conventions on Labour Standards.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A business-to-business
electronic commerce strategy is currently being implemented to further increase
transparency and control. In the 2006 financial year, purchases of more than &pound;0.8
billion have been effected through e-auctions, driving significant cost savings.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">More recently, a global demand management application has been implemented as part of the One Vodafone programme. This web-based application has been developed to provide improved
co-ordination of the global purchase of handsets, providing benefits such as the reduction of inventory and obsolescence risk, improved availability and improved effectiveness to allow the Group to respond better to market changes.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">It is the Group&#146;s policy to agree terms of transactions, including payment terms, with suppliers and it is the Group&#146;s
normal practice that payment is made accordingly. The number of days outstanding
between receipt of invoices and date of payment, calculated by reference to the
amount owed to suppliers at the year end as a proportion of the amounts invoiced
by suppliers during the year, was 36 days (2005: 35 days) in
aggregate for the Group.</font></font></p></div>
<div style="float: right; width: 48%">
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Products and services<br>
</font></b><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Voice services</font></b>
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue from
voice services makes up the largest portion of the Group&#146;s revenue and the
Group is undertaking a wide range of activities to encourage growth in the usage
of these services. In increasingly competitive local markets where value for
money is an important consideration, improving use of existing products and developing
a range of new offerings for customers has helped the Group to continue to grow
total voice
revenue.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Value for money is an important factor for customers when choosing a mobile phone network and is also important in encouraging usage of services whilst maximising revenue and margins.
Two main charging or payment models exist in the mobile market &#150; contract and prepaid. Contract customers are usually governed by a written contract and credit facilities are granted to them to enable access to mobile network services. In most
cases, contracts have a term of 12 to 24 months with monthly payments for services and, in many of the Group&#146;s mobile operations, the option of purchasing a subsidised handset. A prepaid customer pays in advance in order to gain access to voice
and other services. The take-up of these models in the markets in which the Group operates varies significantly, from the US, where the vast majority of customers are on contract plans, to Italy and Egypt, where the market is predominantly
prepaid.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group has made pricing more customer friendly and value inclusive in a number of its mobile operations. In many cases, these new price structures include large minute bundles that
allow customers to talk more for longer. These larger bundle packages and promotions have driven significant usage growth in many of the markets in which the Group operates, although the price per minute is falling across most markets.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue is generated by incoming as well as outgoing calls. Interconnect revenue is received when a customer of a fixed line or other mobile operator network calls a Vodafone
customer. Approximately a fifth of mobile voice revenue is derived from incoming calls.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group continues to invest in providing enhanced network coverage for services in response to Group-wide customer feedback. In parallel, the Group is improving network service
quality to ensure that customers can use their mobile phone whenever and wherever they want.</font></font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Social products</font></b>
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Work has continued this year on making mobile services more accessible to people with special communication needs. Vodafone has undertaken significant research to better understand
the levels of exclusion relating to use of mobile technology, which is helping to inform relevant areas of the business.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A new Social Investment Fund has been formed to provide incremental resources going forward and to seed initiatives that can demonstrate high social value. One of the initiatives
likely to benefit from this is M-pesa, an innovative mobile micro-finance service now on trial in Kenya. This service, run in conjunction with a local bank and Vodafone&#146;s Kenyan joint venture, Safaricom, enables customers to move money in and
out of accounts, between other customers and to withdraw cash, all using secure mobile messaging.</font></font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-voice services</font></b><br>
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Messaging services</font><br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All
of the Group&#146;s mobile operations offer SMS, which allows customers to send
and receive text messages using mobile handsets and various other devices. SMS
usage continued to grow in the 2006 financial year and is the largest contributor
to total messaging revenues. MMS, which offers customers the ability to send
and receive multiple media, such as pictures, music, sound, video and text, to
and from other compatible
devices is also available in all Group mobile operations, with the exception
of Albania. MMS has enjoyed strong revenue growth in the 2006 financial year
across the Group.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone&#146;s mobile instant messaging service (&#147;Vodafone Messenger&#148;) was re-launched during November 2005 in Italy, Spain and the Netherlands and is currently available
in 11 countries. The service has full compatibility with Microsoft&#146;s MSN Messenger in order to address growing customer needs for instant communications.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone live!</font><br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
live!, the Group&#146;s integrated communications and multimedia proposition initially launched in October 2002, has continued to grow strongly. The proposition, targeted
primarily at the young adult (&#147;young active fun&#148;) segment, has been launched in four new markets since 31 March 2005, bringing the total number of countries now offering Vodafone live! to 24. The new markets added in the 2006 financial
year were Luxembourg, Iceland, Cyprus and South Africa. At 31 March 2006, there were 27.1 million Vodafone live! active devices on the Group&#146;s controlled and jointly controlled networks, with an additional 5.9 million devices connected in the
Group&#146;s associated undertakings.</font></font></p></div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p16"></a>
<p><a href="#contents1"><font size="2">Back to Content</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business
      Overview</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
    <font size="2">continued</font></font></p>
<div style="float: left; width: 48%">
<p><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      has continued to develop the Vodafone live! proposition by offering a new
      range of services,
content, handsets and tariffs. The design of the Vodafone live! portal, through
which customers can access a range of online services &#150; including games, ringtones, news, sports and information &#150; is
being continually enhanced to provide richer content and to make it easier for
customers to find and purchase
content.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The important ringtones
market has continued to develop with mass market adoption of &#145;real-tones&#146; where
customers are able to purchase samples of real music recordings as ringtones
from artists signed to labels including EMI, Sony BMG Music Entertainment, Universal
Music and Warner Music.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tariff structures have been updated, with a range of messaging and content based bundles now available to customers. These have delivered improved customer value, particularly when
offered in conjunction with a handset purchase. In addition, browsing charges for accessing the mobile internet have been simplified in many markets, making it more attractive for customers to browse the web using their mobile phones.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23 new 2.5G phones
have been added to the Vodafone live! portfolio in the 2006 financial year, with
an increased emphasis on exclusive and customised devices. The new handsets have
offered improved camera capabilities, better connectivity, with a significant
proportion of devices now offering &#145;Bluetooth&#146; (a wireless link function),
and increased memory card storage to enable customers to save content on their
devices.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Throughout the 2006 financial year, Vodafone has continued to develop standards in the areas of terminals, platforms, games, digital rights management and MMS. These initiatives are
expected to lead to increased speed to market and better services for customers.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone live! with 3G</font></font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In November 2004, the Group launched Vodafone live! with 3G across 13 markets, with an initial portfolio of 10 devices. Vodafone live! with 3G is now available in 10 controlled
markets, two joint venture markets, three associated company markets and three Partner Markets. At 31 March 2006, there were 7.1 million devices registered on the controlled and jointly controlled networks capable of accessing the Vodafone live!
with 3G portal, and the portfolio of Vodafone live! with 3G devices had expanded to 35. 17 new 3G phones have been added to the portfolio during the 2006 financial year.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An enhanced mobile experience gives Vodafone live! with 3G customers access to a range of high quality content and communication services. Vodafone live! with 3G customers can now
experience news broadcasts, sports highlights, music videos, movie trailers and other video content at a quality approaching that of digital television.</font></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone continues to work with leading content partners, including HBO, Eurosport, MTV, UEFA Champions League, Fox and Discovery, to enhance the mobile TV and film content offering.
The wide bandwidth of 3G supports access to sophisticated 3D games and the portfolio of mobile games is continually expanding.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The 3G service also
supports full track music downloads which allow customers to use their phone
to listen to music, choosing from a range that currently includes more than 600,000
music tracks. Vodafone has secured music from some of the world&#146;s greatest
artists through agreements with EMI, Sony BMG Music Entertainment, Universal
Music, Warner Music and other independent record labels. Using the 3G service,
customers can also download live performance videos and stream clips direct to
their mobiles.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the coming year, Vodafone will continue to enhance the music offering with the introduction of Vodafone Radio DJ, a personalised, interactive radio service streamed to both 3G
phones and PCs. Customers will have access to hundreds of thousands of tracks and will be able to personalise radio channels to their taste. This service will be offered on a monthly subscription, giving unlimited listening time, and is due for
release in more than 20 countries over the next year.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In February 2006,
a deal was signed with Google giving Vodafone customers access to the Google
search engine via the Vodafone live! portal. The addition of the Google search
engine (to be available from October 2006) will help customers access content
more easily both on-portal and on the wider &#145;mobile internet&#146;. The
agreement also sees the introduction of a new advertising based revenue stream
to Vodafone live! by incorporating relevant sponsored links within customer search
results. The partnership provides a future framework for other innovative collaborations
between Vodafone and Google, bringing new opportunities to further expand consumer
offerings by
incorporating other existing Google products.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Content standards</font></font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
has continued to provide a leadership role in content standards with the launch
of a global
access control programme and an off-net filter. The access control programme
demonstrates Vodafone&#146;s commitment to deliver content responsibly and provides
the capability for parents to restrict access to content that may be inappropriate
for younger users. Ensuring that the mobile needs of parents and their children
are satisfied will remain a priority during the 2007 financial year.</font></font></p></div>
<div style="float: right; width: 48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As new media channels evolve, a number of Vodafone initiatives are designed to ensure protection for our customers from inappropriate content, contact and commercialism. These include
providing supporting guidelines around the marketing of content to customers, signing up to the codes of practice on spam content and the development of editorial guidelines to provide more robust parental controls.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Mobile Connect data cards</font></font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">First launched in April 2003, the Vodafone Mobile Connect data card provides simple and secure access to existing business information systems such as email, corporate applications,
company intranets and the internet for customers on the move. Access speeds vary depending on which technology the data card is using but typically ranges from 384 kbps when connected to a 3G network up to 1.2 Mbps when connected to a network
enabled with HSDPA technology. The Vodafone Mobile Connect with 3G broadband data card, which utilises HSDPA technology, has been launched in five markets, with other markets to follow during the 2007 financial year.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Vodafone Mobile Connect 3G/GPRS data card has now been rolled out across 11 controlled markets, two joint venture markets, three associated companies markets and ten Partner
Markets. Vodafone Mobile Connect data cards are available in an increasing number of distribution channels.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the 2006 financial year, Vodafone announced the launch of built-in 3G broadband connectivity with Acer, Dell and Lenovo notebooks. The roll out of the notebooks will further
enhance the choices available to Vodafone customers for high speed mobile working.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The product portfolio
was enhanced during the financial year with the launch of an EV-DO data card
allowing customers to connect with Verizon Wireless&#146; high speed data network
whilst travelling in the US. In addition, Vodafone also launched a 3G router
in conjunction with Cisco and Linksys, which enables mobile connectivity for
groups of employees.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006,
there were 0.7 million registered Vodafone Mobile Connect data cards in the Group&#146;s
controlled and jointly controlled markets.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Wireless Office</font></font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Wireless Office offers companies the opportunity to reduce the number of fixed desk phones they have and facilitates the move of voice minutes from the fixed to the mobile
network through a solution that includes elements that can match or better fixed line call costs, desk phone functionality and user experience. A closed user group tariff, allowing employees to call each other for a flat monthly fee, is a key part
of the offer. Another optional element allows a customer to control their mobile phone from their PC or laptop.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006, Vodafone Wireless Office was available in 14 markets and had over 1.5 million customers.</font></font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other business services</font></font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Beyond the wireless enablement of notebook computers, there is an increasing demand for handheld solutions that allow real-time access to email, calendar, contact and other
applications. During 2004, Vodafone launched its BlackBerry<sup>&reg; </sup>from Vodafone proposition,
which is now available in 11 controlled markets, two joint venture markets, three associated company markets and nine Partner Markets.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There were 0.4 million
BlackBerry from Vodafone customers on the Group&#146;s controlled and jointly
controlled networks as at 31 March 2006.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 21 April 2005, the Group announced the roll out of Vodafone Push email, a service providing real-time, secure and remote access to email, contacts and calendar direct to a range of
business-focused mobile devices. The service has been rolled out in six controlled markets, one joint venture market, two associated company markets and two Partner Markets. At 31 March 2006, the service was supported by ten global devices and a
varied number of local devices in the controlled markets.</font></font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Roaming services</font></b>
</font><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When travelling abroad roaming allows mobile phone users to make and receive calls using another mobile network in the visited country. The Group continued to expand its roaming
coverage and services during the 2006 financial year. The focus of the year, however, was to provide reduced, clearer and easier to understand prices to our customers under the Vodafone Travel Promise roaming campaign launched in May 2005.</font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 8 May 2006, the Group announced that average European roaming costs for Vodafone customers will be cut by at least 40% by April 2007, when compared to the period from June to
August 2005. This is expected to benefit over 30 million Vodafone customers who roam every year, and will see the average cost of roaming in Europe fall from over 90 eurocents per minute to less than 55 eurocents per minute. The average</font></font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p17"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">saving was
  determined by calculating the expected cost per minute for all Vodafone&#146;s European customers who roam within the EU during the month of April 2007 and comparing this
to the average cost per minute for all European customers who roamed within the EU during the period from June to August 2005 (see &#147;Regulation&#148;).</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone also announced that it will enter into reciprocal wholesale arrangements
with any other European operator at no more than 45 eurocents per minute for
voice calls within the EU from October 2006. This will enable both Vodafone and
other European mobile operators to continue to lower the cost of roaming to customers
outside of their own networks.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone Passport<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
Passport introduced a new roaming pricing architecture for calls made on Vodafone
and
Partner Networks, enabling customers to &#147;take their home tariff abroad&#148;.
The Vodafone Passport price architecture offers greater price transparency and
certainty to customers when using roaming services abroad. Whilst abroad, customers
can make calls using their domestic tariff, in some cases including free minute
bundles,
and receive calls at no charge &#150; for a one-off connection fee per call.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone Passport is now available in 10 controlled markets, one joint venture
market, one associated company market and one Partner Market. By 31 March 2006,
the service had attracted
5.6 million customers in the Group&#146;s controlled and jointly controlled operations
and a further 0.4 million customers in one of the Group&#146;s associated undertakings
and a Partner Market. Results show that on average, customers are both talking
more and paying less per call when abroad. In addition, Vodafone&#146;s cost
per minute for roaming customers fell by over 30% from summer 2004 compared with
summer 2005.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Wholesale strategy<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
the year, the
commercial management of the Group&#146;s business with its main roaming partners
has been consolidated in order to better leverage the scale and scope of the
Group&#146;s branded footprint. This arrangement has successfully secured a number
of important wholesale roaming discount agreements with other networks on behalf
of the Group. These provide cost structures that support the development of our
roaming customer propositions, promote the mutual development of roaming services
with our Partner Markets, and deliver significant cost savings.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Managed roaming, the network technology that automatically directs Vodafone customers
to the networks of Partner Markets, is now operating in ten markets, delivering
a strong Vodafone customer experience and allowing the Group to benefit from
an improved cost structure.
</font></p>
<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Data propositions<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Several
actions were taken to complement Vodafone Passport by providing simplicity, price
predictability and value for money across data services. Vodafone Group took
the initiative
to reduce substantially &#150; up to 66% in some markets &#150; the cost per
megabyte for standard data usage across its controlled markets. This move was
followed by most joint ventures, associated companies and Partner Markets, enabling
customers to benefit from a conveniently priced data platform across a wide footprint
of 30 markets.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In addition, after pioneering flat monthly data roaming tariffs with its BlackBerry
from Vodafone offer in 2004, Vodafone launched a monthly bundle for its Vodafone
Mobile Connect 3G/GPRS data card in August 2005, which eliminated price uncertainty
and further reduced the nominal cost per megabyte by over 80%. This has significantly
increased usage and contributed to the revenue growth in data services seen over
the 2006
financial year.
</font></p>
<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Vodafone Simply<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Vodafone Simply proposition, launched in May 2005, is predominantly targeted
at the adult personal user segment. The integrated proposition has been developed
to help customers who are less comfortable with mobile technology but would still
like to access
the mobile experience. The proposition includes exclusively developed, &#145;easy
to use&#146; mobile phones with uniquely developed user interfaces accompanied
with tariff plans
and a tailored retail and customer support experience.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
At 31 March 2006, Vodafone Simply was available in a total of 17 markets, with
0.4 million Vodafone
Simply enabled devices registered on the Group&#146;s controlled and jointly
controlled networks.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Marketing and brand<br>
</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Brand<br>
</font></b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Brand
marketing focuses on defining a superior, consistent and differentiated experience
for our customers. A programme has been undertaken to identify the heart of the
Vodafone brand,
that is, Vodafone&#146;s brand essence &#150; which evokes passion, dependability
and a constant striving for improvement. The brand essence has been used to bring
the Vodafone brand to life for Vodafone employees, so that they can do the same
for customers in every interaction.</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Customer communications<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Communication
to drive brand preference and service usage is facilitated through various integrated
advertising media including radio, television, print and outdoor sites. Global
advertising has been developed to communicate the brand essence and to drive
revenue growth by encouraging our customers to &#145;make the most of Now&#146;.
Advertising is supported by strong sponsorship relationships, such as those with
Ferrari and the UEFA Champions League, which have global exposure and allow for
benefits to be realised at the local level. Media activity is based on customer
insight, and is designed to ensure a consistent and effective brand experience
across
Vodafone&#146;s footprint.
</font></p>
<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Customer strategy and management<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
uses a customer
management system called &#145;customer delight&#146; to measure customer satisfaction
in the Group&#146;s controlled markets and the jointly controlled market in Italy
at a local and global level. This is a proprietary diagnostic system which tracks
customer satisfaction across all the points of interaction with Vodafone, and
identifies the drivers of customer delight and their relative impact. This information
is used to optimise satisfaction and maximise the financial benefit from differentiated
marketing propositions and programmes.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Distribution<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group distributes its products and services through a wide variety of direct
and indirect channels, with different approaches used in the consumer and business
sectors.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Products and services are available directly to both consumer and business customers
in the majority of markets. Over 1,000 stores are directly owned and managed
by Vodafone, with an additional 6,500 Vodafone branded stores. In addition, local
websites offer products and services online and local sales forces are in place
to discuss terms with business customers.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The extent of indirect distribution varies between markets but may include using
third party service providers, independent dealers, agencies and mass marketing.
Marketing to third party service providers includes maintaining a competitive
tariff structure, providing technical and other training to their staff and providing
financial incentives for service providers, their dealers and sales people. It
also entails providing assistance on advertising campaigns and supporting the
development of both specialist retail outlets and programmes with multiple retailers.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone&#146;s engagement with IT resellers and distributors has strengthened
during the year, with global and local partnerships now fully operational in
12 countries across the Vodafone footprint. In support of this channel capability,
Vodafone has launched a channel marketing programme to engage with the IT reseller
community via the internet. The programme allows Vodafone marketing and communication
access to the IT channel and incentivisation for the sale of Vodafone data products.
The programme is operational in eight controlled markets and will be extended
across the rest of the Vodafone footprint during the 2007 financial year. This
engagement with the IT
channel considerably extends Vodafone&#146;s ability to sell to small and medium
enterprises and small business customers as well as providing a key platform
to support the launch of notebooks with built in 3G broadband during the coming
year.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The last few years have seen the growth of MVNOs who buy access to existing networks
and re-sell them to customers under a different brand name and proposition. Where
such a relationship generates profitable use of network capacity and does not
impact the Vodafone brand, a mobile operating subsidiary may consider entering
into a partnership with an MVNO.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Multinational
corporates (&#147;MNC&#148;)<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
April 2005, Vodafone launched the first global business unit aimed at serving
a specific customer
segment &#150; the multinational corporate market. The MNC business unit currently
serves many of the world&#146;s largest enterprises with a differentiated global
MNC proposition. The sales and service teams are located across the globe, aligned
with the customers&#146; locations. Customers of the business unit also benefit
from a central service unit to develop specific propositions and pricing specifically
targeted to meet the needs of a global Chief Information Officer, helping to
purchase, manage, monitor and administer mobile telecommunications centrally
within a
global organisation.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Vodafone MNC unit&#146;s initial focus is on providing consistency across
Vodafone markets for existing corporate solutions, together with dedicated global
customer service and
global account management. The MNC vision is &#147;worldwide communications made
easy for global businesses&#148;. In the year since launch, the Vodafone MNC
unit can offer a consistent BlackBerry from Vodafone solution in 12 markets,
a Master Service Agreement covering nine countries, a global helpdesk offering
third line support to the administrator of the global accounts, account and service
management at a global and local level in over 20 markets with full support from
a technical
team to implement existing solutions, and help develop tailored solutions.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</font></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p18"></a>
<p><a href="#contents1"><font size="2">Back to Content</font></a></p>

<p><font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business Overview<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>

<div style="float: left; width: 48%">
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Summary of Group products and services<br>
</font></b><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
following table summarises the availability of the Group&#146;s most significant
products and services as at 31 March 2006. Only the markets in which Vodafone
products and
services are available to customers are represented below: </font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Connect</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Black-</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Connect</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G/GPRS</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Berry</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
  <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">live!</font></td>
  <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">data</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">data</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">from</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Push</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Wireless</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">live!</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">with 3G</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">card</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">card</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Email</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Office</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Passport</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Simply</font></td>
</tr>
<tr>
   <td colspan=10><hr noshade size=1></td>
</tr>
<tr>
   <td colspan="9"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</font><font color="#f02015" size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
   <td align="center"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
</tr>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Albania</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">*</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
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   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Australia</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">*</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ireland</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Malta</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
</tr>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New Zealand</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
</tr>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
</tr>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Romania</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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</tr>
<tr>
   <td colspan="3"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint Ventures</font><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fiji</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
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</tr>
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</tr>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South Africa</font></td>
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   <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Associates</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">France</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Belgium</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Switzerland</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Partner Markets</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Austria</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bahrain</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Croatia</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cyprus</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Denmark</font></td>
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   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Estonia</font></td>
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   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finland</font></td>
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   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hong Kong</font></td>
   <td><font size="2">&nbsp;</font></td>
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   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Iceland</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Kuwait</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luxembourg</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Singapore</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">*</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
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<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Slovenia</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sweden</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
</tr>
<tr>
   <td colspan=10><hr noshade size=1></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total markets</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
</tr>
<tr>
   <td colspan=10><hr noshade size=2></td>
</tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        following information is presented for continuing operations only. Japan
    is classified as a discontinued operation.</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key:</font></td>
  </tr>
  <tr>
    <td><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font><font size="1">&nbsp;</font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Available
    throughout the 2006 financial year</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font><font size="1">&nbsp;</font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Launched
    in the 2006 financial year</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">*</font><font size="1">&nbsp;</font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Launched
    since 31 March 2006</font></td>
  </tr>
</table>
</div>
<div style="float: right; width: 48%">

<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">One
Vodafone</font></b><br>
<font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
One Vodafone initiatives are aimed at achieving cost savings and enhancing revenue
for the Group&#146;s controlled mobile businesses and the Group&#146;s
jointly controlled mobile business in Italy. The Group has previously targeted
that, in the 2008 financial year, the total of operating expenses (being the
aggregate of payroll and other operating expenses) and capitalised fixed asset
additions, would be broadly similar to those for the 2004 financial year, assuming
no significant changes in exchange rates and after adjusting for acquisitions
and disposals. </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group has also previously targeted mobile capitalised fixed asset additions
in the 2008 financial year to be 10% of mobile revenue as a result of the initiatives.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Further, revenue enhancement initiatives were expected to deliver benefits equivalent
to at least 1% additional revenue market share in the 2008 financial year compared
with the 2005 financial year, which the Group is measuring in Germany, Italy,
Spain and the UK against its principal competitors.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group has updated its One Vodafone targets to reflect both the new organisational
structure and additional cost saving initiatives.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Capitalised fixed asset additions are expected to be 10% of revenues in the 2008
financial year
for the total of the Group&#146;s Europe region and its common functions.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group now expects the aggregate of payroll and other operating expenses to
be broadly stable in the 2008 financial year when compared to the 2006 financial
year for the total
of
the Group&#146;s Europe region and its common functions, assuming no significant
changes in exchange rates, after adjusting for acquisitions and disposals, and
excluding the potential impact from its New Businesses unit and any one off business
restructuring costs.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The objective for the 2006 financial year has been to commence implementation
of the plans outlined last year. Significant benefits are expected in the 2007
financial year, with the full targets expected to be met in the 2008 financial
year.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The One Vodafone programme has focused on six key initiatives, as follows:
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The network and supply chain management initiative has driven prices down over the last two years in the radio network area through competitive bidding via
e-auctions and standardising specifications for base stations, accessories and operating costs. In core networks, the Group is advancing towards an all IP based network, thereby simplifying and reducing the number of component parts and leading to
lower costs. Through increasing the amount of self built transmission, both through microwave links and owned dark fibre, costs are being reduced and future cost escalation will be limited as the volume of data traffic grows.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The service platforms initiative has created a shared service organisation to host the European development and operations of services. The shared service
organisation is now providing a hosting service for the Vodafone live! portal for seven of the Group&#146;s mobile operating subsidiaries, the Group&#146;s joint venture in Italy and two Partner Markets. Other platforms are also being migrated and
new services are being implemented, for the first time, solely on the shared service platform. The centralisation is designed not only to reduce costs but also to increase revenue through reduced time to market for new products and
services.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The IT initiative focuses on the two areas of data centres and application development. For data centres, which host the servers to support billing and customer
relationship management systems, consolidation is underway, with migrations of all of the Southern European, German and Dutch data centres completed in the year, and work is progressing on the UK and Ireland data centres following the completion of
the planning phase in the 2006 financial year. The remaining part of the IT effort is focused on driving efficiencies in application development and maintenance, which will continue through to 2008 and beyond. Activities in both these areas are
enabling the Group to leverage its global purchasing power and drive operational excellence.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The customer management programme is focused on driving segment and value based service differentiation to improve customer satisfaction, generate revenue and
reduce churn. During the 2006 financial year, achievements included the launch of a common customer management service strategy, the implementation of a cross operating company network of specialised roaming customer care teams to improve service
for our roaming customers and the roll out of a number of best practice activities to a number of operating companies.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The focus of the terminals programme is to provide an end to end process for delivering terminals to our customers, driving benefits from scale and reduced time to
market. At present, the procurement of approximately four out of five handsets in the Group&#146;s mobile operating subsidiaries and joint venture in Italy is negotiated globally, providing the Group with scale advantages. In addition, complexity in
handsets is being reduced by standardising components and the move to a smaller number of technology platforms. It is expected that these activities, together with the launch of</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</font></td>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p19"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">

<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top"> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exclusive
      Vodafone branded handsets, will drive incremental revenue benefits, as
    well as cost savings, through reduced churn and higher ARPU per handset.</font> </td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finally, the focus of the roaming initiative is to transform customers&#146; roaming experience, primarily through reducing barriers to usage by providing better
value when they travel abroad. In addition, providing the best value inter-operator tariffs and consolidating certain roaming support activities are key goals of the programme. Vodafone Passport has been launched in 13 markets and over 6 million
customers have signed up to the service at 31 March 2006. Improvements in customer satisfaction and a higher proportion of customers roaming on to Vodafone networks have been observed.</font></td>
</tr>
</table>
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Research
and Development (&#147;R&amp;D&#148;)<br>
</font></b><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s R&amp;D function comprises an international and multicultural team
for applied research in mobile telecommunications and its applications. The majority
of the
Group&#146;s R&amp;D function is undertaken through the Group&#146;s centres
of excellence, located in Newbury, Maastricht, Munich, California, Milan and
Madrid, and in an associate centre in Paris belonging to Vodafone&#146;s associated
undertaking
in France, SFR. In the 2006 financial year, the R&amp;D Centre in Tokyo was re-absorbed
into the Japanese operation and ceased to engage in research and development
for the Vodafone Group. The work of the centre in California was refocused to
activities where a presence in the US was essential in order to carry them out
and the size of the centre reduced accordingly. Early in 2006, the Group&#146;s
R&amp;D function was given full responsibility for intellectual property across
the Vodafone
Group.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group&#146;s R&amp;D function provides technical leadership, and a programme
of research support, into technology that will typically start to be used in
the business in three
years and beyond. Governance is provided by the Group R&amp;D Board which is
chaired by the Group R&amp;D Director and consists of the chief technology officers
from four of the mobile operating subsidiaries, together with the heads of Future
Products, Business
Strategy, Terminals and Technology Development.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group&#146;s R&amp;D function focuses on applied research that is positioned
between the basic research undertaken by universities and commercial product
development. The emphasis
of the Group&#146;s R&amp;D work programme is on providing technology analysis
and vision that can contribute directly to business decisions, enabling new applications
of mobile telecommunications, using new technology for new services, and research
for improving operational efficiency and quality of the Group&#146;s networks.
The work programme is organised into technology research and application research.
The technology research is concerned with core radio, network and service enabling
technologies. It includes business modelling techniques, application of social
science and analysis of disruptive technologies. The application research is
concerned with developing new business applications of radio based technologies
for commercial launch. Both areas of research are directed to expanding business
boundaries and opportunities through advances in technology, science and business
practice.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The work of the Group&#146;s R&amp;D function is delivered through a series of
programmes with a substantial number of trials, demonstrations and protoypes.
All work is set in a business and social context. There is growing emphasis on
work that secures intellectual property rights or can otherwise lead to Vodafone
having stronger influence on the technology it will deploy in the future. In
addition, the Group&#146;s
R&amp;D function provides leadership for funding research into health and safety
aspects of mobile telecommunications and technical leadership for the Group&#146;s
spectrum strategy.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The main themes currently being researched are the evolution of 3G, new application
areas for mobile communications and convergence with the internet. The basis
of the Group&#146;s 3G radio technology is W-CDMA and enhancements to provide
a higher speed version, usually referred to as HSDPA, or High-Speed Uplink Packet
Access (&#147;HSUPA&#148;), are currently being rolled out. The focus over the
last year has been on setting scientifically justifiable targets for the long
term evolution of the 3G radio interface and establishing these within the industry.
Evolutions to the core network based on ubiquitous use of internet protocols
and web services complement this, and are leading to a convergence of internet
and mobile technologies. Several internet based or converged services have been
prototyped and demonstrated within the Vodafone community. Significant R&amp;D
effort has also been dedicated to transferring previous research results in mobile
TV to the Group&#146;s marketing and technology functions to provide the basis
for the Vodafone&#146;s mobile TV programme. Applications of mobile telecommunications
to health and well being, intelligent transport systems and the digital home
are also being
researched.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Much of the work of
the Group&#146;s R&amp;D function is done in collaboration with others, both
within the Group and externally. Joint R&amp;D facilities have been set up with
three major infrastructure suppliers. Infrastructure and handset suppliers work
with the Group&#146;s R&amp;D function on many of its projects, from providing
equipment for trials, through coauthoring research reports, to being a partner
in some of the
R&amp;D programmes. At the more academic end of the spectrum of applied research,
the Group&#146;s R&amp;D function continues to develop relationships with a number
of universities. These relationships include sponsoring research students, collaboration
in European research activities, funding specialised research centres and working
with Vodafone funded chairs and readerships. This year, the Group&#146;s R&amp;D
function hosted an Academic Conference where</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
it brought together its academic partners to consolidate its academic research
programme.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The R&amp;D programme provides the Group with long term technical policy, strategy
and leadership, as well as providing technical underpinning for the Group&#146;s
public policies and
government relations, and is shared with all of the Group&#146;s mobile operations
and common functions. They are able to influence the programme through working
relationships that are designed to allow delivery of the results of the programme
directly into the business units where they are needed.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group expensed &pound;206 million in the 2006 financial year on R&amp;D,
compared with &pound;198 million in the 2005 financial year, and capitalised
development costs of &pound;10 million (2005: nil). Besides the core R&amp;D
outlined above, this expenditure was incurred principally on developing new products
and services,
billing systems and network development.</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-mobile Telecommunications</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s non-mobile telecommunications businesses comprise interests in Arcor,
Neuf Cegetel and Bharti Airtel (&#147;Bharti&#148;), previously named Bharti
Tele-Ventures.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Arcor is the second largest fixed line telecommunications provider in Germany.
Based on its own Germany-wide voice and data network, Arcor offers its customers
a range of services for voice and data transfer, with a focus on direct access
based broadband and internet
protocol enabled virtual private network (&#147;IP-VPN&#148;) products. The Group&#146;s
ownership interest in Arcor is 73.7% and it is accounted for as a
subsidiary.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The merger of Cegetel and Neuf Telecom completed on 22 August 2005, creating
the leading alternative operator for fixed telecommunication services in France,
offering a wide range of fixed line telephone services to residential and business
customers as well as special corporate services ranging from internet and customer
relations management to internet and intranet hosting services. The new entity,
Neuf Cegetel, has the largest alternative broadband network in France, with 70%
population coverage.
The Group&#146;s indirect ownership interest in Neuf Cegetel is 12.4% and it
is accounted for as an associated undertaking. In May 2006, the Group&#146;s
indirect
ownership interest increased to 15.4%.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Bharti is an Indian based mobile fixed line telecommunications operation with
three strategic business units: mobility, enterprise services and broadband.
The Group&#146;s ownership interest in Bharti is 10% and it is accounted for
as a joint venture.</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">History and Development of the Company</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company was incorporated under English law on 17 July 1984 as Racal Strategic
Radio Limited (registered number 1833679), as a subsidiary of Racal Electronics
Plc, and changed its name to Racal Telecommunications Group Limited in September
1985. In September 1988, it became Racal Telecom Limited then re-registered as
Racal Telecom Plc, a public limited company. In October 1988, approximately 20%
of the Company&#146;s capital was offered to the public. The Company was fully
demerged from Racal Electronics Plc and became an independent company in September
1991, at which time it changed
its name to Vodafone Group Plc.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Between 1991 and 1999, the Group consolidated its position in the United Kingdom
and enhanced its international interests through a series of transactions. At
31 March 1999, the Group had subsidiary
mobile network operating companies (&#147;mobile operating subsidiaries&#148;)
in six countries (the UK, the Netherlands, Greece, Malta, Australia and New Zealand),
as well as equity interests in a further seven countries, and a proportionate
mobile customer base of 10.4 million.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group completed a number of business transactions between 1999 and 31 March
2003, which transformed
the Company into the world&#146;s leading international mobile telecommunications
company. The most significant transactions were:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
       merger with AirTouch Communications, Inc. (&#147;AirTouch&#148;), which
       completed on 30
June 1999. The Company changed its name to Vodafone AirTouch Plc in June 1999.
       The combined Group had mobile operating subsidiaries in 10 countries,
       (adding Sweden, Portugal, Egypt and the US) and equity interests in an
       additional 12
countries.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
       acquisition of Mannesmann AG (&#147;Mannesmann&#148;), which completed on 12 April 2000. Through this transaction the Group acquired subsidiaries in two of
Europe&#146;s most important markets, Germany and Italy, and increased the Group&#146;s indirect holding in SFR, a French mobile telecommunications operator. Subsequent to the acquisition, the Group sold a number of non-core businesses acquired as
part of the Mannesmann transaction. Following approval by its shareholders at the Annual General Meeting (&#147;AGM&#148;),
the Company reverted to its former name, Vodafone Group Plc, on 28 July 2000.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</font></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p20"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business Overview<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<div style="float: left; width: 48%">
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The combination of the Group&#146;s US mobile operations with those of Bell Atlantic Corporation and GTE Corporation to form the Cellco Partnership, which operates
under the name &#147;Verizon Wireless&#148;, on 10 July 2000. The Group owns 45% of Verizon Wireless and accounts for it as an associated undertaking.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The acquisition of Airtel M&oacute;vil S.A., a mobile network operator in Spain, which became a subsidiary of the Group in December 2000.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The acquisition of Eircell Limited, a mobile network operator in Ireland, following a public offer for shares which closed in May 2001.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The acquisition of the Group&#146;s operations in Japan. The Group&#146;s initial investment in Japan resulted from the AirTouch merger and between the date of the
merger and October 2001, the Group increased its effective interest in the Japanese mobile telecommunications company, J-Phone Co. Ltd to 69.76% through a number of transactions. The Group also acquired a 66.7% stake in the fixed line operator,
Japan Telecom Co., Ltd (&#147;Japan Telecom&#148;).</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">By 31 March 2003, the Group controlled mobile operations in 16 countries and held equity investments in mobile operations in a further 12 countries. The proportionate mobile customer
base was 119.7 million at that date.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions since 31 March 2003</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Acquisitions</font></b><font size="2">
<br>
</font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Subsidiary undertakings</font></b>
<br>
</font><font size="2"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Turkey</font><font size="2">
<br>
</font></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
13 December 2005, the Group announced it had agreed to acquire substantially
all the assets and
business of Telsim Mobil Telekomunikasyon (&#147;Telsim&#148;) from the Turkish
Savings Deposit and Investment Fund. The transaction was completed on 24 May 2006, with cash paid of $4.67 billion (&pound;2.6
billion). Telsim was consolidated as a subsidiary undertaking from that date.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech Republic and Romania</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 31 May 2005, the Company announced that its wholly owned subsidiary, Vodafone International Holdings B.V., had completed a transaction with Telesystem International Wireless Inc.
of Canada to acquire:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79.0%
       of the share capital of MobiFon S.A. (&#147;MobiFon&#148;) in Romania, increasing the Group&#146;s
       ownership in MobiFon to approximately 99.1%;
and,</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.9%
       of the share capital of Oskar Mobil a.s. (&#147;Oskar&#148;) in the Czech
    Republic</font></td>
</tr>
</table>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for cash consideration
of approximately $3.5 billion (&pound;1.9 billion) which was funded from the Group&#146;s cash resources. In addition, the Group assumed approximately $1.0
billion (&pound;0.6 billion) of net debt. The remaining 0.9% of MobiFon was acquired
in a separate transaction in the 2006 financial year.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 1 February 2006, Oskar was renamed Vodafone Czech Republic.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
16 May 2003, the Group increased its shareholding in Vodafone Egypt from 60.0%
to 67.0%. Subsequently,
the Group has reduced its effective interest in Vodafone Egypt to 50.1%. Further
details are provided in &#147;Performance &#150; Financial Position and Resources &#150; Option
agreements and similar arrangements&#148; on
page 42.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece</font><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
1 December 2003, following the purchase of a 9.433% stake in Vodafone Greece
from Intracom S.A.,
the Group announced a public offer for all remaining shares not held by the Group.
As a result of the offer and subsequent market purchases, the Group increased
its effective interest in Vodafone Greece to 99.4% at 31 March 2004. The total
aggregate cash consideration paid in the 2004 financial year was &pound;815 million.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Greece&#146;s
shares were delisted from the Athens and London Stock Exchanges on 15 July 2004
and 20 August 2004 respectively.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Between 24 January 2005 and 31 March 2005, the Group acquired a further 0.4% interest in Vodafone Greece through private transactions at a price equal to the price paid in the public
offer.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
10 June 2003, the Group increased its stake in Vodafone Hungary to 87.9% by subscribing
for Antenna&#146;s share of an issue of &#145;C&#146; shares.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the first half
of the 2005 financial year, the Group subscribed for HUF 89,301 million (&pound;248 million) shares in Vodafone Hungary, increasing the Group&#146;s
stake to 92.8%.
On</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24 September 2004, the Group entered into a sale and purchase agreement to acquire the remaining 7.2% shareholding from Antenna. This transaction completed on</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12 January 2005 with the effect that Vodafone Hungary became a wholly owned subsidiary of the Group.</font>
</font></p>
</div>
<div style="float: left; width: 4%">
</div>
<div style="float: right; width: 48%">
<p><font size="2"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font>
    <br>
  </font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
  the 2004 financial year, the Group sold its interest in Japan Telecom, as described
  under &#147;Disposals&#148;.
  In addition, J-Phone Co., Ltd was renamed Vodafone K.K. on 1 October 2003 and
  Japan Telecom Holdings Co., Ltd. was renamed Vodafone Holdings K.K. on</font>
  </font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font>&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2003.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 25 May 2004, the
Group&#146;s wholly owned subsidiary, Vodafone International Holdings B.V., announced offers for the shares not held by the Group in Vodafone Holdings K.K. and
Vodafone K.K. As a result of these offers, the Group increased its effective shareholding in Vodafone K.K. to 98.2% and its stake in Vodafone Holdings K.K. to 96.1% for a total consideration of &pound;2.4
billion. On 1 October 2004, the merger of Vodafone K.K. and Vodafone Holdings
K.K. was completed and the Group held a 97.7% stake in the merged company, which
was renamed Vodafone K.K. Subsequently, on 1 August 2005, shares in Vodafone
K.K. were delisted from the Tokyo Stock
Exchange.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone K.K was subsequently
sold on 27 April 2006. Further details are provided in the section on &#147;Disposals&#148; below.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Malta</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
1 August 2003, the Group increased its shareholding in Vodafone Malta from 80%
to 100% by purchasing
Maltacom Plc&#146;s 20% interest in Vodafone Malta for cash consideration of </font></font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30 million.</font><font size="2">
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Netherlands</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
the 2004 financial year, the Group increased its effective interest in Vodafone
Netherlands to 99.9%
as a result of private transactions. The Group has exercised its rights under
Dutch law and initiated compulsory acquisition procedures in order to acquire
the remaining shares. Following these procedures, Vodafone Netherlands will become
a wholly owned subsidiary of the Group. Vodafone Netherlands&#146; shares have
been de-listed from the Euronext Amsterdam Stock Exchange.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Having
achieved an effective interest of greater than 90% at the start of the 2004 financial
year,
the Group implemented compulsory acquisition procedures to acquire the remaining
shares, which became effective on 21 May 2003, for a further consideration of &pound;74
million. As a result, Vodafone Portugal became a wholly owned subsidiary of the
Group.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sweden</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under compulsory acquisition procedures, on 15 March 2004, Vodafone Holdings Sweden AB obtained advanced access to an aggregate of 2,377,774 shares in Vodafone Sweden, giving the
Group ownership of, and title, to these shares.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 31 March 2004, the Group increased its effective interest in Vodafone Sweden to 100% by the purchase of 1,320,000 shares which were held in treasury by Vodafone Sweden.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Sweden was subsequently sold on 5 January 2006. Further details are given on page 115.</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
22 September 2003, the Group acquired 100% of Singlepoint (4U) Limited for a
consideration of &pound;417 million. In addition, as a result of a recommended cash offer announced on
5 August 2003, the Group acquired 98.92% of Project Telecom plc, after the offer was declared unconditional on 19 September 2003, and subsequently acquired the remaining 1.08% in November 2003, for a total consideration of &pound;164 million. These
businesses have been integrated into the Group&#146;s UK operations.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Joint ventures</font></b>
<br>
</font><font size="2"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">India</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
18 November 2005, the Group acquired a 5.61% direct interest in Bharti from Warburg
Pincus LLC
and, on 22 December 2005, the Group acquired a further 4.39% effective shareholding
in Bharti by subscribing for convertible debentures in Bharti Enterprises Private
Limited, bringing the Group&#146;s effective shareholding in Bharti to 10.0%. Bharti is a national mobile operator in India which also provides fixed-line services.
The total consideration paid for these transactions was Rs. 67 billion (&pound;858
million).</font>
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South Africa</font><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
26 January 2006, the Group announced that its offer to acquire a 100% interest
in VenFin Limited
(&#147;VenFin&#148;) had become wholly unconditional. VenFin&#146;s principal asset
was a 15% stake in Vodacom Group (Pty) Limited (&#147;Vodacom&#148;) and VenFin has disposed of substantially all of its assets other than its stake in Vodacom for a cash consideration of R5 billion (&pound;0.5
billion) to a new company owned by certain of the former shareholders in VenFin.
At 31 March 2006, the Group held an effective economic interest in VenFin of
98.7% and an effective voting interest of 99.3%. On 20 April 2006, the Group
completed the compulsory acquisition of the
remaining minority shareholdings in VenFin, from which date the Group holds 100%
of the issued share capital of VenFin. As a result the Group holds 50% of the
share capital of Vodacom.</font>
</font></p>
</div>
<br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</FONT><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p21"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Business</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Associates<br>
</font></b><font size="2"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">SFR and Cegetel</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
December 2003, in order to optimise cash flows between Cegetel Group and its
shareholders, SFR
was merged into Cegetel Group and this company was renamed SFR. The fixed line
businesses, Cegetel S.A. and T&eacute;l&eacute;com D&eacute;veloppement, previously controlled by SNCF, were merged to form Cegetel S.A.S. (&#147;Cegetel&#148;), a company in which SFR had a 65% stake, giving the Group an effective interest of 28.5%
at that date. The Group&#146;s interest in SFR remained at approximately 43.9%
as a result of this reorganisation.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 11 May 2005, SFR announced an agreement to merge its fixed line business, Cegetel, with Neuf Telecom, subject to competition and regulatory authority and employee council approvals
which were received, and the transaction completed, on</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22
August 2005. Under
the agreement, SFR purchased SNCF&#146;s 35% minority interest in Cegetel, according
to a pre-existing contract, and then contributed 100% of the capital of Cegetel
to Neuf Telecom. In return, SFR received a 28% interest in the combined entity,
Neuf Cegetel, together with a </font></font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">380 million bond to be issued
by Neuf Cegetel, bringing the Group&#146;s effective shareholding in Neuf Cegetel
to 12.4%.</font><font size="2">
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Disposals</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the three year period ended on 31 March 2006, the Group has also disposed of interests in a number of Group companies.</font>
</font></p>
</div>
<div style="float: left; width: 4%">
</div>
<div style="float: right; width: 48%">

<p><font size="2"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font>
    <br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
14 November 2003, Vodafone Holdings K.K. completed the disposal of its 100% interest
in Japan Telecom.
The Group ceased consolidating the results of Japan Telecom from 1 October 2003.
Receipts resulting from this transaction were &yen;257.9 billion (&pound;1.4 billion), comprising &yen;178.9 billion (&pound;1.0 billion) of cash, &yen;32.5 billion (&pound;0.2 billion) of transferable redeemable preferred equity and &yen;46.5
billion (&pound;0.2 billion) recoverable withholding tax, which was received during the 2005 financial year. In October 2004, the preferred equity was sold to the original purchaser for &yen;33.9 billion (&pound;0.2
billion).</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 17 March 2006,
the Group announced an agreement to sell its 97.7% holding in Vodafone Japan
to SoftBank. The transaction completed on 27 April 2006 for cash consideration
of
approximately &yen;1.42 trillion (&pound;6.9 billion) including the repayment of intercompany debt of &yen;0.16 trillion (&pound;0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately &yen;0.23
trillion (&pound;1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of &yen;0.13 trillion (&pound;0.6
billion).</font>
</font></p>
<p><font size="2">
<font color="#ff0000" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sweden</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
5 January 2006, the Group completed the disposal of its 100% interest in Vodafone
Sweden to Telenor
Mobile Holding AS (&#147;Telenor&#148;). Net cash proceeds after assumption of
net debt by Telenor were </font></font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">970
million (&pound;678 million).</font><font size="2">
</font></p>
<p><font size="2">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other disposals</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the 2004 financial year, the Group disposed of its interests in its associated undertakings in Mexico, Grupo Iusacell, and India, RPG Cellular.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 26 January 2005,
the Group completed the disposal of a 16.9% stake in Vodafone Egypt to Telecom
Egypt, reducing the Group&#146;s effective interest to 50.1%.</font>
</font></p>
</div><br clear="all">
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><hr size="2" noshade></td>
  </tr>
</table>
<div style="float: left; width: 48%">
  <p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Regulation</font></b>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Introduction</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s operating companies are generally subject to regulation governing the operation of their business activities. Such regulation typically takes the form of industry
specific law and regulation covering telecommunications services and general competition (anti-trust) law applicable to all activities. Some regulation implements commitments made by Governments under the Basic Telecommunications Accord of the World
Trade Organisation to facilitate market entry and establish regulatory frameworks. The following section describes the regulatory framework and the key regulatory developments in the EU and selected countries in which the Group has significant
interests. Many of the regulatory developments reported in the following section involve ongoing proceedings or consideration of potential proceedings that have not reached a conclusion. Accordingly, the Group is unable to attach a specific level of
financial risk to the Group&#146;s performance from such matters.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">European Union</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Although
  most Member States of the EU (&#147;Member States&#148;) have now implemented the EU Regulatory Framework for the communications sector (&#147;the EU Framework&#148;),
  which was adopted in 2002, there remain both ongoing and new infringement proceedings
  against a number of Member States for late or inadequate implementation.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The EU Framework consists
of four principal Directives outlining matters such as the objectives to be pursued
by national regulatory authorities (&#147;NRAs&#148;), the way in which
telecommunications operators are to be licensed, measures to be taken to protect
consumers and ensure universal provision of certain telecommunications services
and the terms and basis upon which operators interconnect and provide access
to each
other.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The EU Framework introduces
a number of important changes to the previous framework. It is intended to align
the techniques for defining where sector specific regulation may be applied and
the threshold for when such regulation can be applied with those already employed
in EU competition law. It is also intended to ensure greater consistency of approach
amongst NRAs within the Member States. All NRAs are required to take
utmost account of the list of markets which are specified by the European Commission
(the &#147;Commission&#148;) in a Recommendation when deciding which markets to investigate. The first such Recommendation was published by the Commission in
February 2003 and includes markets at a wholesale level, for &#145;voice call termination on individual mobile networks&#146; (the &#147;call termination market&#148;), the &#145;wholesale national market for international roaming&#146; (the
&#147;roaming market&#148;) and the wholesale market for &#145;access and call origination&#146; (the &#147;access market&#148;) on public mobile networks (together the &#147;relevant markets&#148;). NRAs may, with the Commission&#146;s
consent, also propose markets not included in the Recommendation. The Commission
will periodically review the Recommendation and the Commission has said it expects
to complete the first such review by the end of 2006. This review may lead to
an increase or a
decrease in the number and scope of markets subject to sector specific regulation.
Changes to the Recommendation are expected to become effective at the conclusion
of the review,</font>
</font></p>
</div>
<div style="float: left; width: 4%">
</div>
<div style="float: right; width: 48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">while any changes to the framework would become effective following their transposition into national law, from approximately 2010 onwards. So far, the</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Commission has signalled that only minor changes to the regulatory framework will be considered. Whether the reviewed regulatory framework will increase or decrease the regulatory
burden on the Group will depend on the changes being adopted by the EU, the manner in which revised directives are subsequently implemented in Member States and how the revised regulatory framework will be applied by the respective NRAs.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Regulation, under
the EU Framework, can only be applied to undertakings with significant market
power (&#147;SMP&#148;) (either individually or collectively) in the relevant markets,
subject to the Commission&#146;s consent. SMP under the EU Framework accords with the concept of &#147;dominance&#148; under
existing EU competition law. This generally implies a market share of at least
40%, although other factors may also be taken into consideration. The SMP threshold
under the previous framework required only a 25% share of the relevant market.
The Commission published SMP Guidelines in July 2002, which set out principles
for use by NRAs in the analysis of markets to
determine if undertakings have SMP under the EU Framework.</font>
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spectrum</font>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In September 2005, the Commission published proposals for spectrum reform across the EU, including proposals to allow holders of spectrum greater flexibility on the use to which it is
put, to allow holders to trade spectrum within a spectrum market and to improve harmonisation of certain bands. The Commission has proposed that these reforms be enacted by 2010 and has commenced a number of actions to pursue its proposals,
principally through the work of the Radio Spectrum Policy Group, a spectrum policy working group comprising the Commission and Member States.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Data retention</font>
<br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In 2005, the
European Parliament passed a new Directive on the retention of electronic communications
data for law enforcement purposes. Member States must now proceed with national
implementation. The Directive sets out the data that network operators and service
providers must store and, if requested, make available to law enforcement authorities
for the purpose of the prevention, investigation, detection and prosecution of
serious criminal offences. The initial invest</font></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ment and recurring annual operating costs to the Group of this data retention requirement may be material. It depends on how it is implemented nationally and the extent to which the total of such costs
are compensated.</font><font size="2">
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">International Roaming</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In February
2006, the Commission announced that it is proposing to enact new legislation
by way of a regulation under Article 95 of the EU Treaty (which would have immediate
effect) to reduce what it considers to be excessive prices charged by mobile
network operators for international roaming services. The Commission has concluded
its consultation on proposals for a regulation which it proposed would include
both retail price regulation aimed at ensuring that the costs of calls when roaming
are no more than equivalent domestic calls and the regulation of wholesale prices
charged between mobile operators for roaming services. </font></p>
<p>&nbsp;</p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</font></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p22"></a>
<p><a href="#contents1"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Regulation </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font></p>
<div style="float: left; width: 48%">
<p><font size="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
      12 June 2006, the Commission
announced that it had &#8216;fine tuned&#8217; its proposals so as to set the
maximum wholesale roaming charge for a local call (within the visited country)
at twice the average EU mobile termination rate and that the price of international
calls (from the visited country) will be set at three times the mobile termination
rate. Retail prices would be capped at wholesale rates plus an allowance for
retail costs of 20-30%. These proposals are now subject to consultation within
the European Commission before being presented for consideration by the European
Parliament and Member States, expected in July. The Commission expects the regulation
to become law during 2007. In July 2005, the Commission, supported by the European
Regulation Group (&#147;ERG&#148;), a body established under the EU Framework
and comprising all EU NRA&#146;s, also called for greater transparency of roaming
tariffs and in October 2005 launched a website to inform the public about roaming
tariffs within the EU. The website was updated in March 2006.</font><font size="2"> </font></font></p>
<p><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Anti-trust proceedings in relation to international roaming continue. In July 2004, the Commission issued a statement of objections, a document detailing its proposed findings,
  following its investigation into the UK market for wholesale international roaming and, in January 2005, the Commission issued a statement of objections following its investigation of the German market. In both cases, the statement of objections was
  addressed to both the national mobile operating subsidiaries and to the Company and, in both cases, Vodafone has responded both in writing and in oral proceedings.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Commission&#146;s
proposed findings are that Vodafone has monopoly power over its wholesale customers
in both the UK and Germany. Vodafone UK and Vodafone Germany are alleged to have
engaged in excessive or unfair pricing. The Commission alleges that the abuse
occurred from 1997 to at least September 2003 in the UK and from 2000 to December
2003 in Germany. In the event the Commission finds that there has been a breach
of
competition law, it may impose a fine on any addressee who had committed the
breach.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Separately, the roaming market is one of the relevant markets in the Recommendation. In May 2005, the ERG adopted a common position on international roaming and several NRAs have
since then commenced their reviews of the roaming market but no NRA has proposed any regulation in this market. NRAs in Finland and Italy have concluded their market analysis and found no operator to have SMP. The French regulator has concluded that
no operator has SMP in the traditional sense but has proposed an extended definition of joint SMP which, if approved, could lead to a finding that all three French operators are jointly dominant. In addition, it has asked the Commission to take
action using instruments outside of the existing Framework.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany enacted
  a law implementing the EU Framework in June 2004. Vodafone Germany agreed to
  and subsequently reduced its mobile call termination rate with Deutsche Telekom
  for
incoming calls from Deutsche Telekom&#146;s network in December 2004 from14.32
eurocents to 13.2 eurocents and in December 2005 to 11.0 eurocents. The NRA has
found all mobile network operators to have SMP in the call termination market
and has announced that it will now propose ex-ante price regulation in the absence
of agreement to further reductions amongst the mobile network operators.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In February 2004, the NRA decided to award licences for 450MHz spectrum for the provision of public access mobile radio services. Vodafone Germany is appealing this decision.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA has concluded that it will seek to harmonise the expiry of all 2G licences in 2016 and it will extend the terms of all licences ceasing prior to this date, including the
licence held by Vodafone subject to agreement on fees. The NRA has also decided to award certain 900MHz frequencies to O2 and EPlus. The NRA is now developing proposals to license new spectrum at 2.6 GHz, often referred to as the 3G extension band,
and is considering the auction of unused 3G spectrum at 2 GHz at the same time.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy enacted national law implementing the EU Framework in September 2003.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA has concluded
that all mobile network operators have SMP in the call termination market and
has imposed obligations on Vodafone Italy of cost orientation, non-discrimination
and transparency. In September 2005, Vodafone Italy reduced its rates by 19%
from 14.95 eurocents to 12.10 eurocents. The NRA foresees further reductions
to 11.20 eurocents from 1 July 2006 and by 13% below the retail prices index
on both 1 July
2007 and 1 July 2008. Vodafone Italy has appealed the NRA&#146;s decision.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA concluded its review of the access market in February 2006 and found that no operator had SMP but has said it will keep the market under review.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In March 2005, the
National Competition Authority (&#147;NCA&#148;) in Italy conducted unannounced
inspections of the offices of mobile network operators in Italy, including Vodafone
Italy, seeking evidence of collusion following complaints by resellers and potential
MVNOs about alleged anti-competitive conduct. In November 2005, Vodafone Italy
received a further request for information from the NCA. In February 2006, the
NCA
decided to prolong the duration of the proceeding until December 2006. If the
NCA were to decide that there had been a breach of competition law, it would
be able to impose a fine on any operator who had committed the breach.</font>
</font></p>
</div>
<div style="float: right; width: 48%">
  <p><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
        March 2006, the NRA published for consultation the draft analysis of
  the roaming market and found no operator to have SMP.</font> </font></p>
  <p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font>
    <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legislation implementing the EU Framework was enacted in November 2003, and the main sections of secondary legislation were approved during 2004 and 2005.</font><font size="2">
    </font></p>
  <p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In September 2005,
the NRA announced a 10.57% reduction in Vodafone&#146;s mobile termination rates,
which was implemented by Vodafone Spain in November 2005. On 23 February 2006, the Spanish NRA found all mobile network operators to have SMP in the call termination market and imposed obligations including non-discrimination, cost orientation
and accounting separation on Vodafone Spain. A further reduction in rates is expected on 1 September 2006.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In February 2006, the NRA found that the three mobile network operators held a position of joint SMP in the access markets. This decision was reviewed by the European Commission and
the NRA allowed to proceed. The NRA has decided to impose a wholesale network access obligation at reasonable prices facilitating the entry of firms including MVNOs. Vodafone has appealed the decision of the NRA to find Vodafone as holding SMP in
the Spanish courts and has appealed the decision of the European Commission to allow the NRA to proceed to the Court of First Instance at Luxembourg.</font>
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United Kingdom</font>
<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The new Communications Act, implementing the EU Framework, was enacted in July 2003.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA conducted and concluded its review of the access market and found that no operator had SMP. The NRA found that all mobile network operators have SMP in the call termination
market and required Vodafone UK to reduce its termination charge for calls conveyed over the 2G network, with effect from September 2004, to a target average charge of 5.6 pence per minute. In December 2005, the NRA decided to maintain this price
control until 31 March 2007. The NRA has now embarked upon consultation on proposals to regulate the call termination market in respect of calls conveyed over both 2G and 3G networks from April 2007.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA has proposed that 2G mobile frequencies will be tradable in 2007. The NRA is assessing whether holders of 2G spectrum can use it to provide 3G services. The NRA is also
consulting on a specific proposal to liberalise spectrum usage rights more generally.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United States</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Federal
  Communications Commission (&#147;FCC&#148;), the United States&#146; NRA, commenced
  a Notice of Inquiry in 2004 into the level of termination rates charged by
  foreign mobile network operators to US international operators. The FCC sought
  inputs on the status of foreign mobile termination rates, including actions
  taken to date by foreign regulators to address the issue. This proceeding remains
  pending.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NRA plans to award spectrum via auction in the 1.7 and 2.1 GHz bands beginning in June 2006.</font>
</font></p>
<p>
  <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other Mobile Operations<br>
  </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</font><font size="3">
  <br>
  </font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Albania</font></b><font size="2">
  </font><br>
      <font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
    March 2006, the NRA issued for consultation to the operators its analysis
      of the mobile market
  in Albania, where the NRA proposed to designate the mobile networks operators
  including Vodafone Albania as having SMP in two markets: the call termination
  market and &#147;the market of mobile services to end users&#148;. As a result,
  the NRA proposes obligations of transparency, non-discrimination and access
  obligations. The NRA may also impose retail price controls.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Albania has
submitted its comments and objections on the NRA&#146;s market analysis. In addition,
Vodafone Albania has been notified by the NCA of an investigation into alleged
excessive pricing of mobile services. In May 2006, a Parliamentary Investigation
Commission was established to investigate the two mobile operators and to prepare
recommendations for liberalisation of the market.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Australia</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
NCA released its final decision on the regulation of mobile termination in June
2004. In its review,
it proposed that all mobile network operators have market power with respect
to mobile termination and proposed a pricing principle that requires mobile call
termination rates to fall from 21 Australian cents per minute to 12 Australian
cents per minute. Vodafone Australia&#146;s appeal of this decision was rejected. In
addition, Vodafone Australia lodged an &#147;access undertaking&#148; proposing
alternative rates, which the NCA has rejected. Vodafone Australia is now appealing
that decision. The NCA has also received various requests for adjudication of
disputes between Vodafone Australia and certain other operators, the results
of which will apply from the date the dispute was lodged with the NCA.</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p23"></a>
<p><a href="#contents1">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><font color="#ffffff" size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><B>Business</B></font></td>
  </tr>
  <tr>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Czech Republic</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
February 2005, Vodafone Czech Republic was awarded a 3G licence. There have been
one or more complaints that the award may have breached EU competition law and
the Commission is
investigating the award process.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In May 2005, a new law implementing the EU Framework came into effect. Mobile
number portability was implemented in January 2006.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Egypt</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt
enacted a new telecommunications law in 2003, which gave new powers to the NRA
and imposed new obligations on licensees, including obligations in relation to
universal service provision. During 2004, Vodafone Egypt finalised an agreement
with the NRA that covered most of these new obligations while obtaining additional
spectrum in the 1800MHz range to facilitate business expansion.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In February 2005, the NRA announced proposals to award a third mobile licence.
The licence will be technology neutral and enable both 2G and 3G services. The
licence is expected to be awarded by September 2006. The NRA is planning to negotiate
the award of 3G licences to the two existing mobile network operators by September
2006. Mobile number portability and national roaming are expected to be implemented
in Egypt by April
2007.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Greece</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece
enacted national law implementing the EU Framework in February 2006. Vodafone
Greece agreed to reduce its mobile termination rate from approximately 17.0 eurocents
to 14.5 eurocents per minute on 1 October 2004. The NRA has found all firms to
have SMP in the call termination market and has developed a Long Run Incremental
Cost
model (&#147;LRIC model&#148;) to determine cost oriented mobile call termination
rates. Vodafone Greece will reduce its rate to 12.0 eurocents on 1 June 2006
and further reductions to approximately 10.0 eurocents will be made in one or
more steps prior to 1 June 2007.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In August 2005, each of the mobile network operators was fined </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">500,000 for failing to implement mobile number portability.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In March 2006, the three largest mobile network operators were found by the NRA
to have colluded in the setting of retail SMS prices and were fined </font><font size=2
face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 million each. Vodafone Greece has filed an administrative appeal.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In April 2005, the Council of State issued a judgement that base stations erected
by mobile operators prior to August 2002 did not meet legal requirements. The
new law seeks to remedy this but also prohibits the installation of base stations
in schools and hospitals and decreases EMF exposure limits.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In March 2005, Vodafone Greece was made aware of a security issue in its network.
Software foreign to the network, and capable of performing interception, had
been installed in the
network without Vodafone&#146;s knowledge. The software was created, supported
and maintained by an external supplier. The foreign software was removed without
delay and the Greek authorities promptly informed. The authorities conducted
investigations and subsequently made the matter public in February 2006. Since
then, further investigations have taken place and continue. Vodafone Greece is
co-operating with the Greek authorities.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Hungary</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary
implemented the EU Framework in January 2004 as part of its preparations for
joining the EU on 1 May 2004. In its review of the call termination market, the
NRA has proposed that all mobile network operators have SMP and has imposed obligations
of cost orientation, non-discrimination, accounting separation and transparency.
Vodafone Hungary has appealed this finding. In May 2005, Vodafone Hungary complied
with a requirement to reduce its call termination rates by 16%. Vodafone Hungary
has appealed the decision. In its review of the access market the NRA found that
no mobile network operator had SMP.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Ireland<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Regulations
implementing the EU Framework were adopted in June 2003. In December
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005,
an appeal
court annulled the NRA&#146;s finding that Vodafone and O</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sub>2 </sub>have joint SMP</font>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
the access market.
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In its review of the call termination market, the NRA has found that all mobile network operators have SMP. The NRA has imposed obligations of cost orientation and non-discrimination
on all operators and accounting separation and transparency on</font>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone and O<sub>2</sub>. The
NRA is also considering the use of price controls. Vodafone Ireland</font>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">has agreed to reduce its rates by 11% below the retail price index per annum for the 24 months commencing January 2006.</font>
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In February 2006, the NRA withdrew a 3G licence it had awarded to Smart Telecom
in November 2005. Smart Telecom is appealing this decision.
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Malta</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legislation
implementing the EU Framework in Malta was enacted during 2004. In the call termination
market, the NRA has found both mobile network operators as having SMP and has
imposed obligations on Vodafone Malta of cost orientation, non-discrimination,
accounting separation and transparency. Vodafone Malta reduced its mobile termination
rates by 5% from 11.5 eurocents per minute to 10.9 eurocents per minute in January
2006. The NRA is consulting on proposals to find Vodafone and Go Mobile, the
two Maltese mobile network operators, as having joint SMP in the access market,
with obligations to offer cost based access to MVNOs and indirect access to other
parties.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone Malta and Go Mobile were awarded 3G licences in August 2005. The third
3G licence remains unassigned. In October 2005, Vodafone Malta was awarded a
Broadband Wireless Access
frequency licence to operate a nationwide network.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Number portability was implemented on 31 March 2006.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">The Netherlands</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Netherlands implemented the EU Framework during 2004. In December 2003, mobile
network operators reached agreement with the NRA and the NCA to reduce mobile
call termination rates on 1 December 2004 from 15.4 eurocents per minute to 13.0
eurocents per minute, and on 1 December 2005 to 11.0 eurocents per minute. In
addition, the NRA has finalised its review of the call termination market and
has found that all operators have SMP and proposes remedies of cost orientation,
non-discrimination and transparency.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In its review of the access market, the NRA found that no mobile network operator
had SMP.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Government is consulting on the extension or renewal of the existing 2G 900
MHz licences which expire in 2010.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">New Zealand</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
NRA released a report proposing regulation of mobile termination rates, including
a rate reduction of 44% from 27 New Zealand cents per minute to 15 New Zealand
cents per minute and reducing further to 12 New Zealand cents per minute by 2010/2011.
These proposals were submitted to the Minister for approval, who has requested
the NRA to reconsider them. The NRA has done so and published a further position
in which its key findings remain essentially unchanged. These will now be resubmitted
to the Minister.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The NRA is also reviewing regulation of national roaming and co-location and
disputes submitted by Vodafone in relation to certain local interconnection services.
It has also recently announced a review to determine whether further regulation
or changes to existing regulation are necessary to promote competition in the
mobile services market.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The NRA has approved industry plans for the introduction of mobile number portability
and has set a date of April 2007 for its introduction.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The government is in the process of determining the price for renewal of 2G licences
which expire in 2011.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Portugal<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal
enacted national law implementing the EU Framework in February 2004. Following
its review of the call termination market, the NRA found all three mobile network
operators as having SMP and it has imposed obligations on Vodafone Portugal including
cost orientation, non-discrimination, accounting separation and transparency.
Vodafone Portugal reduced its mobile termination rates in July 2005 to 13.0 eurocents
per minute
and in January 2006 to 12.5 eurocents per minute.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone Portugal has requested the renewal of its 2G licence, which is due to
expire in October 2006, and the Government has proposed terms which remain largely
unchanged from those
which already apply to the licence.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Romania</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
March 2003, the
NRA determined MobiFon, the Group&#146;s subsidiary in Romania, as having SMP
in the national interconnection market so, under national law, MobiFon&#146;s
mobile termination rates were reduced from 12.0 US cents to 10.0 US cents. In
March 2005, the NRA granted a 3G licence to MobiFon.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Number portability will be implemented in Romania during the 2007 financial year,
with the obligation for all mobile and fixed operators to provide number portability
to customers no
later than June 2007.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p24"></a>
<p><a href="#contents1">Back to Contents</a></p>
</font>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Regulation<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</font></p>
<div style="float: left; width: 48%">
<p><font size="2">
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint ventures</font>
<br>
</font><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fiji</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
Fiji has been required to make wholesale and retail price reductions of between
from 15% to 70% for a range of services. In December 2005, Vodafone Fiji issued
proceedings to prevent the government from issuing a second licence in breach
of Vodafone&#146;s
exclusivity rights.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>India<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From
1 March 2006, a new Interconnection Usage Charge regulation became effective.
Interconnection charges remained at Rs.0.30 per minute. However, changes were
made to reduce by 33% the total access deficit charge paid by operators to BSNL.
It is proposed that the charge be removed by the 2008 financial year.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In March 2006, the NRA recommended to the Department of Telecommunications that
mobile number portability should be implemented by 1 April 2007.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In November 2005, the government announced a lifting of the foreign direct investment
ceiling from 49% to 74% in the telecom sector, subject to certain preconditions.
The deadline for
compliance is 2 July 2006.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Department of Telecommunications is expected to issue a new national spectrum
policy before the end of 2006. The new policy is expected to include plans for
allocation of 3G
spectrum.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Kenya</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
March 2006, the Kenyan Government issued a new Information and Communications
Bill for public comment. The new legislation will replace the Communication Act
1998, and is expected
to be finalised before the end of 2006.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In April 2006, the NRA commenced a review of interconnection and retail prices,
which may result in new interconnection and retail price regulations.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Safaricom, Vodafone&#146;s joint venture, has been given until December 2006
to relinquish 2.5MHz of paired 900 MHz spectrum in return for the allocation
of 1800MHz spectrum. It is proposed that the relinquished 900 MHz spectrum will
be given to a new third mobile licensee. In September 2005, Safaricom filed an
application for permanent 3G spectrum.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Poland</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legislation
implementing the EU Framework in Poland, which joined the EU on 1 May 2004, was
enacted during 2004 and the Polish NRA has commenced its market reviews. The
NRA, in its review of the call termination market, proposes to find all mobile
network operators to have SMP and to impose obligations of cost orientation,
transparency and non-discrimination.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The NRA awarded a fourth 3G licence in 2005, which Polkomtel is appealing. In
November 2005, the President of the NRA initiated the process to issue a new
2G licence. In January 2006, three companies submitted offers which are now under
consideration.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Mobile number portability for contract customers was implemented by the mobile
network operators in January 2006.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">South Africa</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
new Electronic Communications Bill was adopted by Parliament in November 2005,
and is awaiting signature of the President. The new Bill will replace current
telecommunications and
broadcasting legislation.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
An Information Communication Technologies Black Economic Empowerment Charter
(the &#147;Charter&#148;) is expected to be finalised in 2006. The Charter will
set targets to evaluate a
company&#146;s contribution to Broad-Based Black Economic Empowerment, which
is the Government policy to increase economic empowerment of historically disadvantaged
individuals in South Africa. Targets will be set in terms of equity ownership,
management and control, employment, skills development, procurement, enterprise
development and corporate social investment.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In May 2005, the NRA commenced an investigation to assess whether Vodacom, the
Group&#146;s joint venture in South Africa, has major operator status, which
is similar to SMP, in the interconnection market. Vodacom has challenged the
grounds for this investigation in court, with a hearing expected before the end
of 2006.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In 2005, the NRA commenced investigations on mobile pricing and handset subsidies.
Separately, in May 2005, the NCA commenced an investigation into alleged excessive
pricing of mobile termination rates. These investigations remain ongoing. Vodafone
has been notified of the commencement of judicial review proceedings of the decision
under competition law approving its acquisition of VenFin.
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2">
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Associated undertakings and investments</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font></font><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Belgium</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Belgium
implemented the EU Framework during 2005. The NRA has commenced its market reviews
and in the call termination market proposes to find all operators as having SMP
and has commenced a process to develop a LRIC model to set rates. The proposals
include decreases of mobile termination rates of each firm by around 12% every
six months from July 2006 to July 2008, and confirms the existing degree of asymmetric
termination
rates between the three network mobile operators.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The NRA held an initial
consultation on the renewal of Vodafone&#146;s associated undertaking, Proximus&#146;,
2G licence which expires in 2010.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In January 2006, the NCA conducted unannounced inspections of the offices of
Proximus seeking evidence of anti-competitive behaviour in relation to the market
for corporate customers following a complaint by a competitor. These enquiries
are continuing. If the NCA decides that there had been a breach of competition
law, it would be able to impose a fine on any operator who had committed the
breach.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">China</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Chinese Government is expected to award 3G licences in 2006 and to implement
related changes to its telecommunications regulatory framework.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">France</font></b><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">France
implemented the EU Framework during 2004. In its review of the call termination
market, the NRA concluded that all mobile network operators have SMP and imposed
obligations of cost orientation, non-discrimination, accounting separation and
transparency.
It set a price cap for Vodafone&#146;s associated undertaking, SFR, of 9.5 eurocents
per minute from 1 January 2006. During 2006, the NRA commenced work on a new
price cap
for the period from 1 January 2007.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In December 2003, a French consumers association lodged a complaint with the
NCA alleging collusion amongst the three French mobile operators on SMS retail
pricing. The NCA is still investigating this complaint. Independently, the NRA
has commenced a review of SMS termination and is consulting on proposals for
wholesale price regulation and the notification of a wholesale SMS market to
the Commission under the EU
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Framework. If it proceeds, the French NRA would be the first to do so in Europe.
In its consultation, the NRA proposes a price cap for wholesale termination of
no greater than 2.5 eurocents per minute. In addition, following two complaints
against SFR and Orange France, the NRA ordered Bouygues and SFR, and Bouygues
and Orange, respectively, to reduce their symmetric wholesale SMS termination
rates to 4.3 eurocents per
message with effect from 1 July 2005.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In December 2005, the NCA decided that SFR and the other mobile network operators
had contravened competition law during the period from 1997 to 2003 by sharing
information and during the period from 2000 to 2002 by entering into an agreement
aimed at stabilising the development of market shares. SFR has been fined </font><font size="2"><font face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">220 million. SFR has appealed against this decision.</font>
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Following the NRA&#146;s review of the access market, the NRA proposed that all
three mobile network operators, including SFR, had joint SMP in the market and
it proposed access obligations as a remedy. The proposals were notified to the
Commission in April 2005 but
the NRA has subsequently withdrawn its proposals.
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Switzerland<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
April 2005, the
Swiss NCA issued proposals finding that Swisscom Mobile, Vodafone&#146;s associated
undertaking, had abused a dominant position in the call termination market. In
April 2006, the NCA announced that it intends to fine Swisscom Mobile CHF489
million (&pound;216 million). Additional interconnection disputes between Swisscom
Mobile and its
mobile competitors are pending.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In July 2005, the Swiss NCA started a preliminary investigation concerning access
to mobile networks. At the end of November 2005, the Swiss NRA commenced a process
to award three licences for broadband wireless access and Swisscom Mobile is
participating in an auction which will take place in the summer of 2006.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p25"></a></font><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="contents2"></a></font><font size="2">
<p><a href="#contents">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><font color="#ffffff" size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><B>Performance</B></font></td>
  </tr>
  <tr>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<table width="100%" border=0 cellpadding=0 cellspacing=0 bgcolor="#ccffff">
<tr>
   <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contents</font></td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Page</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p25"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance Introduction</font></a></td>
   <td width="10%" align="right"><a href="#p25"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p26"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Critical Accounting Estimates</font></a></td>
   <td align="right"><a href="#p26"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p29"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key Performance Indicators</font></a></td>
   <td align="right"><a href="#p29"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p30"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating Results</font></a></td>
   <td align="right"><a href="#p30"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p30a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Group
    Overview</font></a></td>
   <td align="right"><a href="#p30a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p32"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Review
    of Operations</font></a></td>
   <td align="right"><a href="#p32"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p36"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; US
    GAAP Reconciliation</font></a></td>
   <td align="right"><a href="#p36"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p37"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Summary
    of Key Performance Indicators for Principal Markets</font></a></td>
   <td align="right"><a href="#p37"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p38"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources</font></a></td>
   <td align="right"><a href="#p38"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p38a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Balance
    Sheet</font></a></td>
   <td align="right"><a href="#p38a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p38b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Equity
    Dividends</font></a></td>
   <td align="right"><a href="#p38b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p39"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Contractual
    Obligations</font></a></td>
   <td align="right"><a href="#p39"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p39a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Contingencies</font></a></td>
   <td align="right"><a href="#p39a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p39b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Liquidity
    and Capital Resources</font></a></td>
   <td align="right"><a href="#p39b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p43"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk Factors, Trends and Outlook</font></a></td>
   <td align="right"><a href="#p43"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p46"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cautionary Statement Regarding Forward-Looking Statements</font></a></td>
   <td align="right"><a href="#p46"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p47"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-GAAP Information</font></a></td>
   <td align="right"><a href="#p47"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">47</font></a></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><a href="#p49"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Definition of Terms</font></a></td>
   <td align="right"><a href="#p49"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49</font></a></td>
   <td>&nbsp;</td>
</tr>
</table>
<p><font size="2">
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Introduction</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
</font></b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
following discussion is based on the Consolidated Financial Statements included
elsewhere in this Annual Report.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
On 19 July 2002, the European Parliament adopted Regulation No. 1606/2002 requiring
listed companies in the Member States of the European Union to prepare their
Consolidated Financial Statements in accordance with IFRS from 2005. This is
the first time the Company&#146;s Annual Report has been prepared under IFRS.
Consequently, financial information for the year ended 31 March 2005, presented
as comparative figures in this report, has been restated from UK GAAP in accordance
with IFRS, as disclosed in note
40 to the Consolidated Financial Statements.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Consolidated Financial Statements, which are prepared in accordance with
IFRS, differ in certain significant respects from US GAAP. Reconciliations of
the material differences in the IFRS Consolidated Financial Statements to US
GAAP are disclosed in note 38 to the
Consolidated Financial Statements, &#147;US GAAP information&#148;.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group faces a number of significant risks that may impact on its future performance
and activities.
Please see &#147;Risk Factors, Trends and Outlook&#148;.
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign Currency Translation</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company publishes its Consolidated Financial Statements in pounds sterling. However,
the majority
of the Company&#146;s subsidiaries, joint ventures and associated undertakings
report their revenue, costs, assets and liabilities in currencies other than
pounds sterling and the Company translates the revenue, costs, assets and liabilities
of those subsidiaries, joint ventures and associated undertakings into pounds
sterling when preparing its Consolidated Financial Statements. Consequently,
fluctuations in the value of pounds sterling versus other currencies could materially
affect the amount of these items in the Consolidated Financial Statements, even
if their
value
has not changed in their original currency.
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The following table sets out the pounds sterling exchange rates of the other
principal currencies
of the Group, being: &#147;euros&#148;, &#147;</font><font size=2
face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#148; or &#147;eurocents&#148;, the currency of the EU Member States which have adopted the euro as their currency,
and &#147;US dollars&#148;, &#147;$&#148;, &#147;cents&#148; or &#147;&cent;&#148;,
the currency of the United States.</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
   <td colspan=3 align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
      / year ended 31 March</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td colspan=3><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr valign="bottom">
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Currency
      (=&pound;1)</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average:</font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro</font></td>
   <td width="12%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.47</b></font></td>
   <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.47</font></td>
   <td width="2%">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US dollar</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.79</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.84</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March:</font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.43</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.46</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.1</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US dollar</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.74</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.89</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7.9</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Merely
    for convenience, this Annual Report contains translations of certain pounds
    sterling amounts into US dollars at specified rates. These translations should
    not be construed as representations that the pounds sterling amounts actually
    represent such US dollar amounts or could be converted into US dollars at
    the rate indicated or at any other rate. Unless otherwise indicated, the
    translations of pounds sterling into
US
dollars have been made at $1.7393: &pound;1.00, the Noon Buying Rate in the City
of New York for cable transfers in sterling amounts as certified for customs
purposes by the Federal Reserve Bank of New York (the &#147;Noon Buying Rate&#148;)
on 31
March 2006. The Noon Buying Rate on 26 May 2006 was $1.8566: &pound;1.00.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
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: &pound;1.00,
to
two decimal places.
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
      ended 31 March</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Period
      end</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002</font></td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.42</font></td>
   <td width="2%">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.43</font></td>
   <td width="2%">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.48</font></td>
   <td width="2%">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.37</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2003</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.58</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.54</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.65</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.43</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.84</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.69</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.90</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.55</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td align="left">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.89</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.85</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.96</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.75</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
   <td align="right"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.74</b></font></td>
   <td>&nbsp;</td>
   <td align="right"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.79</b></font></td>
   <td>&nbsp;</td>
   <td align="right"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.92</b></font></td>
   <td>&nbsp;</td>
   <td align="right"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.71</b></font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td align="center">&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="bottom">
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Month</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">November 2005</font></td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.78</font></td>
   <td width="2%">&nbsp;</td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.71</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.78</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.72</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">January 2006</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.79</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.74</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2006</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.78</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.73</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2006</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.76</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.73</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">April 2006</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.82</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.74</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2006</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.89</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.83</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
    </tr>
  <tr>
    <td width="5%"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> In
        respect of May
2006, for the period from 1 May to 26 May 2006, inclusive. </font></td>
  </tr>
</table>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inflation</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inflation
has not
had a significant effect on the Group&#146;s results of operations and financial
condition during the two years ended 31 March 2006.
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation of Information</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
the discussion
of the Group&#146;s reported financial position and results, information in addition
to that contained within the Consolidated Financial Statements is presented.
Refer to page 49 for definition of terms.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page>
<a name="p26"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Critical Accounting Estimates</font></b>
</p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  prepares its Consolidated Financial Statements in accordance with IFRS, the
  application of which often requires judgements to be made by management when
  formulating the
Group&#146;s financial position and results. Under IFRS, the directors are required to adopt those accounting policies most appropriate to the Group&#146;s circumstances for the purpose of presenting fairly the Group&#146;s financial position,
financial performance and cash flows. The Group also prepares a reconciliation of the Group&#146;s revenue, net profit and shareholders&#146; equity
between IFRS and US GAAP.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed
could materially affect the reported results or net asset position of the Group should it later be determined that a different choice would be more appropriate.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Management considers
the accounting estimates and assumptions discussed below to be its critical accounting
estimates and, accordingly, provides an explanation of each below. Where it is
considered that the Group&#146;s US GAAP accounting policies differ materially
from the IFRS accounting policy, a separate explanation is provided.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The discussion below
should also be read in conjunction with the Group&#146;s disclosure of significant IFRS accounting policies, which is provided in note 2 to the Consolidated
Financial Statements, &#147;Significant accounting policies&#148; and with the &#147;Summary of differences between IFRS and US GAAP&#148; provided
in note 38 to the Consolidated Financial Statements.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Management has discussed
its critical accounting estimates and associated disclosures with the Company&#146;s
Audit Committee.</font>
</font></p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment reviews</font>
<br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Asset recoverability is an area involving management judgement, requiring assessment as to whether the carrying value of assets can be supported by the net present value of future
cash flows derived from such assets using cash flow projections which have been discounted at an appropriate rate. In calculating the net present value of the future cash flows, certain assumptions are required to be made in respect of highly
uncertain matters, as noted below.</font><font size="2">
</font><p></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS requires management
to undertake an annual test for impairment of indefinite lived assets, and for
finite lived assets, to test for impairment if events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Group management
currently undertakes an annual impairment test covering goodwill and other indefinite
lived assets, and also reviews finite lived assets and
investments in associated undertakings at least annually to consider whether
a full impairment review is required. In the year to 31 March 2006, the Group
has recognised impairment losses amounting to &pound;23,515 million relating to the
Group&#146;s mobile operations in Germany, Italy and Sweden, of which &pound;23,000
million was recognised following completion of the annual impairment test.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>US GAAP</b></font><b>
</b><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under US GAAP, the requirements for testing the recoverability of intangible assets and property, plant and equipment differ from IFRS. US GAAP requires the carrying value of such
assets with finite lives to be compared to undiscounted future cash flows over the remaining useful life of the primary asset of the asset group being tested for impairment, to determine if the asset or asset group is recoverable. If the carrying
value exceeds the undiscounted cash flows, the carrying value is not recoverable and the asset or asset group is written down to the net present value of future cash flows derived in a manner similar to IFRS.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For purposes of goodwill impairment testing under US GAAP, the fair value of a reporting unit including goodwill is compared to its carrying value. If the fair value of a reporting
unit is lower than its carrying value, the fair value of the goodwill within that reporting unit is compared with its respective carrying value, with any excess carrying value written off as an impairment. The fair value of the goodwill is the
difference between the fair value of the reporting unit and the fair value of the net assets of the reporting unit.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Following the issuance
of EITF Topic D-108, &#147;Use of the Residual Method to Value Acquired Assets Other Than Goodwill&#148;, in the year ended 31 March 2005, the Group, in respect
of the indefinite lived licences in Verizon Wireless, was required to perform a transitional impairment test on indefinite lived intangible assets other than goodwill by comparing the carrying amount with the fair value of the asset determined on a
standalone basis. In the year ended 31 March 2005, the cumulative effect on net loss of adopting this standard was &pound;6,177 million, net of taxes of &pound;5,239
million.</font>
</font></p>
</div>
<div style="float: right; width: 48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Assumptions</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are a number of assumptions and estimates involved in calculating the net present value of future cash flows from the Group&#146;s businesses including management&#146;s
expectations of:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth in EBITDA, calculated as adjusted operating profit before depreciation and amortisation;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">timing and quantum of future capital expenditure;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">uncertainty of future technological developments;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">long term growth rates; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the selection of discount rates to reflect the risks involved.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group prepares and internally approves formal ten-year plans for its businesses and uses these as the basis for its impairment reviews. Management uses the initial five years of
the plans, except in markets which are forecast to grow ahead of the long term growth rate for the market. In such cases, further years will be used until the forecast growth rate trends towards the long term growth rate, up to a maximum of ten
years.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For mobile businesses, a long term growth rate into perpetuity has been determined as the lower of:</font>
</p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the nominal GDP rates for the country of operation, using forecast nominal GDP rates from external sources; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the long term compound annual growth rate in EBITDA implied by the business plan.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For
non-mobile businesses, no growth is expected beyond management&#146;s plans for
the initial five year period.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changing the assumptions
selected by management, in particular the discount rate and growth rate assumptions
used in the cash flow projections, could significantly affect the
Group&#146;s results. The Group&#146;s review includes the key assumptions related
to sensitivity in the cash flow projections.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following changes to the assumptions used in the impairment review would have (increased)/decreased the combined impairment loss recognised in the year ended</font>
</font> <font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font>&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March
2006 in respect of the Group&#146;s mobile operations in Germany and Italy:</font>
</font></p>
<table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td>&nbsp;</td>
   <td align="right" width="28%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Increase by <sup>1 </sup>/<sub>2 </sub>%</font></td>
   <td width="3%" align="right"><font size="1">&nbsp;</font></td>
   <td align="right" width="28%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Decrease by <sup>1 </sup>/<sub>2 </sub>%</font></td>
   <td width="3%">&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;bn</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;bn</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discount rate</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.2</font></td>
   <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.4</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted EBITDA</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.3</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.3</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital expenditure</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.2</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.2</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long term growth rate</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.5</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td valign="top" width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Represents the compound annual growth rate for the initial five years of the Group&#146;s approved financial plans.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Represents capital expenditure as a percentage of revenue in the initial five years of the Group&#146;s approved plans.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These assumption changes in isolation would not have resulted in an impairment loss in any other of the Group&#146;s continuing operations.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>US GAAP</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under US GAAP, the assumptions and estimates involved in reviewing for impairment are similar to IFRS, with the exception of the requirement to determine the primary asset of an asset
group. For asset groups represented by the Group&#146;s operating companies, the primary asset is determined as the 3G licence, except for operating companies where no 3G licence has been acquired, in which case the 2G licence is the primary asset.
If the primary asset of the Group&#146;s mobile operations in Germany were the 2G rather than the 3G licence, the carrying value would exceed the undiscounted cash flows and result in a significant impairment loss.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business combinations</font>
<br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
  only arises in business combinations. The amount of goodwill initially recognised
  is dependent on the allocation of the purchase price to the fair value of the
  identifiable assets acquired and the liabilities assumed. The determination
  of the fair value of the assets and liabilities is based, to a considerable
  extent, on management&#146;s judgement.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allocation of the purchase price affects the results of the Group as finite lived intangible assets are amortised whereas indefinite lived intangible assets, including goodwill, are
not amortised, and could result in differing amortisation charges based on the allocation to indefinite lived and finite lived intangible assets.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On the acquisition of mobile network operators, the identifiable intangible assets may include licences, customer bases and brands. The fair value of these assets is</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p27"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">determined by discounting estimated future net cash flows generated by the asset, assuming no active market for the assets exist. The use of different assumptions for the expectations
of future cash flows and the discount rate would change the valuation of the intangible assets.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>IFRS</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On transition to IFRS, the Group has elected not to apply IFRS 3, &#147;Business</font> <font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Combinations&#148;, retrospectively as the difficulty in applying these requirements to the large number of business combinations completed by the Group from incorporation through to
1 April 2004 exceeded any potential benefits. Goodwill arising before the date of transition to IFRS, after adjusting for items including the impact of proportionate consolidation of joint ventures, amounted to &pound;78,753 million.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">If the Group had elected to apply the accounting for business combinations retrospectively, it may have led to an increase or decrease in goodwill and increase in licences, customer
bases, brands and related deferred tax liabilities recognised on acquisition.</font></font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>US GAAP</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For acquisitions prior to 29 September 2004, the key difference from IFRS is that for the acquisition of mobile network businesses, the excess of purchase price over the fair value of
the identifiable assets and liabilities acquired other than licences (&#147;the residual&#148;) was allocated to licences, as opposed to goodwill. However, subsequent to this date and due to the prohibition of this method of accounting following the
issuance of EITF Topic D-108 licences are valued using a direct valuation approach, with the residual being allocated to goodwill. For other acquisitions, the residual has been and will continue to be allocated to goodwill.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets, excluding goodwill</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other intangible
  assets include the Group&#146;s aggregate amounts spent on the acquisition
  of 2G and 3G licences, customer bases, brands, computer software and development
  costs. These assets arise from both separate purchases and from acquisition
  as part of business combinations.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The relative size
of the Group&#146;s intangible assets, excluding goodwill, makes the judgements surrounding the estimated useful lives and basis of amortisation critical to the
Group&#146;s financial position and performance.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006,
intangible assets, excluding goodwill, amounted to &pound;16,512 million (2005: &pound;16,149 million) and represented 13.0% (2005: 11.0%) of the Group&#146;s
total
assets.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Estimation of useful life</b></font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The useful life used to amortise intangible assets relates to the future performance of the assets acquired and management&#146;s judgement of the period over which economic benefit
will be derived from the asset. The basis for determining the useful life for the most significant categories of intangible assets is as follows:</font>
</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Licences and spectrum fees</font></b><font size="2">
</font><br>
<font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The estimated useful life is, generally, the term of the licence, unless there is a presumption of renewal at negligible cost. Using the licence term reflects the period over which
the Group will receive economic benefit. For technology specific licences with a presumption of renewal at negligible cost, the estimated useful economic life reflects the Group&#146;s expectation of the period over which the Group will continue to
receive economic benefit from the licence. The economic lives are periodically reviewed, taking into consideration such factors as changes in technology. Historically, any changes to economic lives have not been material following these
reviews.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Customer bases</font></b>
</font><br>
<font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The estimated useful life principally reflects management&#146;s view of the average economic life of the customer base and is assessed by reference to customer churn rates. An
increase in churn rates may lead to a reduction in the useful life and an increase in the amortisation charge. Historically, changes to churn rates have been insufficient to impact the useful life.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capitalised software</font></b>
</font><br>
<font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The useful life is determined by management at the time the software is acquired and brought into use and is regularly reviewed for appropriateness. For computer software licences,
the useful life represents management&#146;s view of expected benefits over which the Group will receive benefits from the software, but not exceeding the licence term. For unique software products controlled by the Group, the life is based on
historical experience with similar products as well as anticipation of future events, which may impact their life, such as changes in technology.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Historically, changes in useful lives have not resulted in material changes to the Group&#146;s amortisation charge.</font></font>
</p>
</div>
<div style="float: right; width: 48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant
and equipment also represent a significant proportion of the asset base of the
Group and hence the estimates and assumptions made to determine their carrying
value and
related depreciation are critical to the Group&#146;s financial position and performance</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Estimation of useful life</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The charge in respect of periodic depreciation is derived after determining an estimate of an asset&#146;s expected useful life and the expected residual value at the end of its life.
Increasing an asset&#146;s expected life or its residual value would result in a reduced depreciation charge in the Group&#146;s income statement.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The useful lives of Group assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Furthermore, network infrastructure cannot be depreciated over a period that extends beyond the expiry of the associated
licence under which the operator provides telecommunications services.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Historically, changes in useful lives have not resulted in material changes to the Group&#146;s depreciation charge.</font></font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Cost capitalisation</b></font><b>
</b><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost includes
  the total purchase price and labour costs associated with the Group&#146;s
  own employees to the extent that they are directly attributable to construction
  costs, or where they comprise a proportion of a department directly engaged
  in the purchase or installation of a fixed asset. Management judgement is involved
  in determining the appropriate internal costs to capitalise and the amounts
  involved. For the year
ended</font><font size="2">
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006, internal
costs capitalised represented approximately 7% of expenditure on property, plant
and equipment and computer software and approximately 1% of total operating
expenses</font></font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s tax charge on ordinary activities is the sum of the total current and deferred tax charges. The calculation of the Group&#146;s total tax charge necessarily involves
a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final
resolution of some of these items may give rise to material profit and loss and/or cash flow variances. See &#147;Financial Position and Resources&#148;.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The growth in complexity
of the Group&#146;s structure following its rapid expansion geographically has
made the degree of estimation and judgement more challenging. The resolution
of issues is not always within the control of the Group and it is often dependent
on the efficiency of the legal processes in the relevant taxing jurisdictions
in which the Group operates. Issues can, and often do, take many years to resolve.</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payments in respect of tax liabilities for an accounting period result from payments on account and on the final resolution of open items. As a result, there can be substantial
differences between the tax charge in the income statement and tax payments.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant items
on which the Group has exercised accounting judgement include a provision in
respect of an enquiry from UK HM Revenue and Customs with regard to the Controlled
Foreign Companies tax legislation (see note 31 to the Consolidated Financial
Statements), legal proceedings to recover VAT in relation to 3G licence fees
(see &#147;Contingencies&#148; on page 39) and potential tax losses in respect of a write down
in the value of investments in Germany (see note 6 to the Consolidated Financial Statements). The amounts recognised in the Consolidated Financial Statements in respect of each matter are derived from the Group&#146;s best estimation and judgement,
as described above. However, the inherent uncertainty regarding the outcome of these items means eventual resolution could differ from the accounting estimates and therefore impact the Group&#146;s
results and cash flows.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Recognition of deferred tax assets</b></font><b>
</b><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future, against which the
reversal of temporary differences can be deducted. Recognition, therefore, involves judgement regarding the future financial performance of the particular legal entity or tax group in which the deferred tax asset has been recognised.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Historical differences between forecast and actual taxable profits have not resulted in material adjustments to the recognition of deferred tax assets.</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p28"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Critical Accounting Estimates </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font><font size="3">
</font></p>
<div style="float: left; width: 48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue recognition and presentation</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue from mobile telecommunications comprises amounts charged to customers in respect of monthly access charges, airtime charges, messaging, the provision of other mobile
telecommunications services, including data services and information provision, fees for connecting users of other fixed line and mobile networks to the Group&#146;s network, revenue from the sale of equipment, including handsets, and revenue
arising from the Group&#146;s Partner Market agreements.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Deferral period</b></font><b>
</b><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customer connection fees, when combined with related equipment revenue, in excess of the fair value of the equipment are deferred and recognised over the expected life of the customer
relationship. The life is determined by reference to historical customer churn rates. An increase in churn rates would reduce the customer relationship life and accelerate revenue recognition. Historically, changes in churn rates have been
insufficient to impact the expected customer relationship life.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Any excess upgrade or tariff migration fees over the fair value of equipment provided are deferred over the average upgrade or tariff migration period as appropriate. This time period
is calculated based on historical activity of customers who upgrade or change tariffs. An increase in the time period would extend the period over which revenue is recognised.</font></font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Presentation</b></font><b>
</b><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When deciding
  the most appropriate basis for presenting revenue or costs of revenue, both
  the legal form and substance of the agreement between the Group and its business
  partners are
reviewed to determine each party&#146;s respective role in the transaction.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Where the Group&#146;s
role in a transaction is that of principal, revenue is recognised on a gross
basis. This requires turnover to comprise the gross value of the transaction
billed to the customer, after trade discounts, with any related expenditure charged
as an operating cost.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Where the Group&#146;s
role in a transaction is that of an agent, revenue is recognised on a net basis,
with turnover representing the margin earned.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allowance for bad and doubtful debts</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The allowance
  for bad and doubtful debts reflects management&#146;s estimate of losses arising from the failure or inability of the Group&#146;s customers to make required payments.
The estimate is based on the ageing of customer accounts, customer credit worthiness and the Group&#146;s
historical write-off experience.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes to the allowance
may be required if the financial condition of the Group&#146;s customers improves
or deteriorates. An improvement in financial condition may result in lower actual
write-offs.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Historically, changes
to the estimate of losses have not been material to the Group&#146;s financial
position and results.</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p29"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right">&nbsp;</td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Key Peformance Indicators</font></b></p>
<div style="float: left; width:48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  and the Executive Committee monitor the Group&#146;s progress against its strategic objectives and the financial performance of the Group&#146;s
  operations on a regular basis. Performance is assessed against the strategy,
  budgets and forecasts using financial and non-financial measures.</font><font size="2">
</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The following
    details certain of the most significant Key Performance Indicators (KPIs)
    used by the Group, their purpose, the basis of calculation and the source
    of the underlying data. Definitions of certain of the terms are provided on
    page 49. </font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group uses
the following primary measures to assess the performance of the Group and its
individual businesses. A number of these measures at a Group level are presented
on an organic basis, which provides an assessment of underlying growth excluding
the effect of business acquisitions and disposals and changes in exchange rates.
Financial measures presented on an organic basis are non-GAAP financial measures.
For more
information on these measures and the basis of calculation of organic growth
see &#147;Non-GAAP Information&#148; on pages 47 to 48.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
    and its growth for the Group, and its principal markets, covering the 2006
    and 2005 financial year, is provided in &#147;Operating Results&#148; on pages
    30 to 37.</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Revenue
    and revenue growth are used for internal performance analysis and by investors
    to assess progress against outlook statements provided externally by the Group.
    </font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted operating profit</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted operating
profit is used by the Group for internal performance analysis as it represents
the underlying operating profitability of the Group&#146;s businesses. The measure is
presented both for the Group and its principal markets, covering the 2006 and 2005 financial years, in &#147;Operating Results&#148; on pages 30 to 37. The basis of calculation, along with an analysis of why the Group believes it is a useful
measure, is provided in the section titled &#147;Non-GAAP Information&#148; on
pages 47 to 48.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free cash flow</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free cash flow
provides an evaluation of the Group&#146;s liquidity and the cash generated by the Group&#146;s operations. The calculation of free cash flow, along with an analysis of
why the Group believes it is a useful measure, is provided in the section titled &#147;Non-GAAP Information&#148; on
pages 47 to 48. The Group has provided an outlook for free cash flow in the 2007
financial year on page 45.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted earnings per share</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted earnings per share is calculated as basic earnings per share from continuing operations excluding items such as impairment losses, non-recurring amounts related to business
acquisitions and disposals and changes in the fair value of equity put rights and similar arrangements. The items excluded from basic earnings per share for the 2006 and 2005 financial years and the per share impact are detailed in note 8 to the
Consolidated Financial Statements.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operational</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Certain operational
measures relating to customers and revenue for the Group&#146;s mobile telecommunications business and its principal makets, covering the 2006 and 2005 financial
years, are provided in &#147;Operating Results&#148; on pages 30 to 37, with
the exception of customer delight. These measures are commonly used in the mobile
telecommunications industry.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group highly
values its customers and strives to delight them. As a result, customer based
KPIs are important measures for internal performance analysis. Management also
believes that certain of these measures provide useful information for investors
regarding the success of the Group&#146;s customer acquisition and retention activities. For customer numbers and churn, the data used to calculate the KPIs is derived from the
customer relationship management systems of each of the Group&#146;s operations.</font>
</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Customer numbers</font></b><font size="2">
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group prepares customer numbers on a venture and proportionate basis for its
    mobile operations. A summary of the customer numbers on both bases is presented
    in &#147;Business &#150; Business Overview &#150; Summary of Group mobile
    telecommunications businesses at 31 March 2006&#148; on page 13. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Churn</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
    represents the disconnection rate of customers in each of the Group&#146;s
    mobile operations. It is calculated as the total gross customer disconnections
    in the period </font></p>
</div>
<div style="float: right; width:48%">
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> divided
    by the average total customers in the period. Churn rates stated in this Annual
    Report are calculated for the entire financial year. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Customer delight</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group uses a proprietary &#145;customer delight&#146; system to track customer
    satisfaction across its controlled markets and jointly controlled market in
    Italy. More information on the benefits of the system are provided in &#147;Business
    &#150; Business Overview &#150; Products and services &#150; Customer strategy
    and management&#148; on page 17. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Customer
    delight is measured by an index based on the results of surveys performed
    by an external research company which cover all aspects of service provided
    by Vodafone and incorporates the results of the relative satisfaction of the
    customers of competitors. An overall index for the Group is calculated by
    weighting the results for each of the Group&#146;s operations based on service
    revenue. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Increased
    customer expectations are putting a downward pressure on customer satisfaction
    for the Group and many of its competitors. Despite this trend, the Group outperformed
    its target for customer delight in the 2006 financial year and the index was
    broadly stable compared to the previous financial year. </font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue based measures</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Management believes that revenue based measures provide useful information for investors regarding trends in customer revenue derived from mobile telecommunications services and the
extent to which customers use mobile services.</font><font size="2">
</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The data
    used to calculate these KPIs is derived from a number of sources. Financial
    information, such as service revenue, is extracted from the Group&#146;s financial
    systems, whilst operational information, including customer and usage metrics,
    is derived from the customer relationship management and billing systems of
    each of the Group&#146;s operations. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Average
revenue per user (&#147;ARPU&#148;)</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ARPU
    represents the average revenue by customers over a period and is calculated
    as service revenue, being total revenue excluding equipment revenue and connection
    fees, divided by the weighted average number of customers during the period.
    ARPU disclosed in this Annual Report is presented on a monthly basis and represents
    the total ARPU for the financial year divided by twelve. </font></p>
  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>Voice usage</b> </font><br>
    <font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
    usage is the total number of minutes of voice use on the Group&#146;s mobile
    networks, including calls made by the Group&#146;s customers, often referred
    to as outgoing usage, and calls received by the Group&#146;s customers, often
    referred to as incoming usage. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Messaging and data revenue</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Messaging
    and data revenue represent the non-voice element of service revenue. In recent
    years, these revenues have grown at a faster rate than voice revenue as customers
    increasingly use these services and new products and services have been launched.
    As competition has intensified in many of the markets in which the Group operates
    and penetration rates have increased, the ability of the Group to grow messaging
    and data revenue has become an increasingly important factor, internally and
    for investors. </font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Costs</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">One Vodafone</font></b><font size="2">
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    One Vodafone initiatives are targeted at achieving savings in operating expenses
    and capital expenditure and are discussed in more detail on pages 18 to 19.
    Reporting on performance against these targets will be disclosed in the Annual
    Report for the year ending 31 March 2008, including reconciliations to amounts
    included in the Consolidated Financial Statements. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capitalised fixed asset additions as a percentage of mobile revenue</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
    the mobile telecommunications industry, significant investment is required
    to roll out network infrastructure in order to improve service capacity. This
    performance indicator is used by Vodafone management to compare capitalised
    fixed asset additions to prior periods and internal forecasts. Management
    believes that this measure provides useful information for investors to measure
    the capital investment required to support revenue growth. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> This measure
    is calculated as capitalised fixed asset additions for the mobile telecommunications
    business (note 3 to the Consolidated Financial Statements) as a percentage
    of the revenue of the mobile telecommunications businesses (note 3 to the
    Consolidated Financial Statements). In the 2006 financial year, capitalised
    fixed asset additions as a percentage of mobile revenue was 13.7% compared
    with 16.4% for the previous financial year. </font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p30"></a>
<a name="p30a"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating
  Results</font></b></p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
  Overview</font> </p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years ended 31 March</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td>&nbsp;</td>
   <td colspan=3><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile telecommunications</font></td>
   <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,137</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,740</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,339</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less: revenue between mobile and other operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(126</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(157</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,350</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating (loss)/profit</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,084</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      telecommunications</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,280</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,334</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      operations</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">119</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
      operating profit</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,399</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,353</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&#150; Impairment of intangible assets</font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23,515</font></b></td>
    <td><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(475</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr bgcolor="#cccccc">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&#150; Other</font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr bgcolor="#cccccc">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&#150; Non-operating income in associated undertakings</font></td>
   <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment income</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">353</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">294</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing costs</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,120</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(880</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit before taxation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on profit</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,380)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,869</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from continuing operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,233</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss)/profit for the financial year from discontinued operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,588</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,821</font></b></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><p><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before
          impairment losses and non-recurring amounts related to business acquisitions
          and disposals.</font></p>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006 financial year compared to 2005 financial year</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue increased
    by 10.0% to &pound;29,350 million in the year to 31 March 2006, resulting from organic growth of 7.5%, favourable movements in exchange rates of 0.5% and a further
  2.0% from the acquisitions in the Czech Republic, India, Romania and South Africa, partially offset by the impact of the disposal of the Group&#146;s
  operations in Sweden.</font><font size="2">
</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The Group
    recorded an impairment charge to the carrying value of goodwill in the Group&#146;s
    operations in Germany (&pound;19,400 million) and Italy (&pound;3,600 million)
    reflecting a revision of the Group&#146;s view of the prospects for these
    businesses, particularly in the medium to long term, and a further &pound;515
    million was recorded in respect of the Swedish business following the announcement
    of its disposal. This was the primary reason for the operating loss of &pound;14,084
    million in the current financial year compared with an operating profit of
    &pound;7,878 million in the previous financial year. Adjusted operating profit
    increased by 12.5% to &pound;9,399 million, with organic growth of 11.4%,
    following organic growth of 10.3% in the Group&#146;s mobile business. Favourable
    exchange rate movements benefited reported growth for the Group by 1.0% whilst
    the net impact of acquisitions and disposals improved reported growth by 0.1%.
    </font></p>
</div>
<div style="float: right; width:48%">

<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td colspan="6"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Mobile telecommunications</font></b></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years ended 31 March</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td>&nbsp;</td>
   <td colspan=3><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total service revenue</font></td>
   <td width="15%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25,881</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,547</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.9</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        revenue</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,256</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,193</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,137</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,740</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.3</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading results</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice services</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21,493</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,888</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.1</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice services</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&#150; Messaging</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,556</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,143</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13.1</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&#150; Data</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">832</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">516</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61.2</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total service revenue</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25,881</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,547</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.9</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net other
        revenue</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">532</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">546</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.6</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect costs</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,210</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,815</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.4</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other direct costs</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,936</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,756</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.3</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net acquisition
        costs</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,541</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,446</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.6</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net retention
        costs</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,444</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,234</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.0</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,127</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,009</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.9</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other operating expenses</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,625</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,264</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.1</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquired intangibles amortisation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(157</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased licence amortisation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(947</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(919</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.0</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation and other amortisation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,581</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,341</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.2</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of operating profit in associated undertakings</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,435</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,025</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.2</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
        operating profit</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,280</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,334</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.4</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr align="left">
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
        for the mobile telecommunications business includes revenue of &pound;1,724
        million (2005: &pound;1,647 million) which has been deducted from acquisition
        and retention costs and excluded from other revenue in the trading results.</font></td>
  </tr>
  <tr align="left">
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before
        impairment losses and non-recurring amounts related to acquisitions and
        disposals.</font></td>
  </tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p31"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right">&nbsp;</td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<P>&nbsp;</P>
<div style="float: left; width:48%">
<p><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue<br>
</font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
    in the mobile business increased by 9.3%, or 6.7% on an organic basis, for
    the year to 31 March 2006 due to a 7.2% increase in service revenue on an
    organic basis offset by lower growth in other revenue. Service revenue growth
    reflected a 15.2% organic increase in the average customer base of the controlled
    mobile networks and the Group&#146;s share of jointly controlled mobile networks, offset by the impact of lower
ARPU in a number of the Group&#146;s markets. Competitive pressures have intensified
recently following a significant number of new market entrants and greater competition
from incumbents, specifically in the mature markets of Western Europe. Many of
these markets have penetration rates over 100% which, together with termination
rate cuts and a higher proportion of lower spending prepaid customers across
the Group, have led to the decline in ARPU. The estimated impact of termination
rate cuts
on the growth in service revenue in the current financial year is as follows:</font></p>


  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
        of</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
        revenue</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">termination</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth
        excluding</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reported
        growth</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">rate
        cut on</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
        impact of</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
        service</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">service
        revenue</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">termination
        rate</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">revenue</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">cuts</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td valign="bottom"><font size="1">&nbsp;</font></td>
      <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
      <td width="18%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4</font></td>
      <td width="2%" valign="bottom"><font size="2">&nbsp;</font></td>
      <td width="18%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.7</font></td>
      <td width="2%" valign="bottom"><font size="2">&nbsp;</font></td>
      <td width="18%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.1</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.9</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.4</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.0</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.2</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        Mobile Operations</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.3</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.7</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td valign="bottom"><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
          telecommunications business</font></div></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.9</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.4</font></td>
      <td valign="bottom"><font size="2">&nbsp;</font></td>
      <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice revenue
    increased by 8.1%, or by 5.3% on an organic basis, due to by the growth in
    average customers and a successful usage stimulation programme leading to
    24.6% growth in total minutes, or 18.9% on an organic basis, offset by tariff
    declines from competition and termination rate cuts. Revenue from outgoing
    calls was the primary driver of voice revenue growth, whilst incoming voice
    revenue increased marginally as a significant increase in the proportion of
    incoming calls from other mobile networks was offset by the impact of termination
    rate cuts, particularly in the second half of the current financial year.</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Messaging
    revenue rose by 13.1%, or 10.6% on an organic basis, as an increase in the
    average customer base and the number of messages sent per customer was offset
    by tariff declines. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The success
    of 3G, Vodafone live! and offerings in the business segment, including Vodafone
    Mobile Connect data cards and BlackBerry from Vodafone, were the main contributors
    to a 61.2% increase, or 60.4% on an organic basis, in non-messaging data revenue.
    An additional 6,321,000 3G devices were registered on the Group&#146;s networks
    in the current financial year, bringing the total to 7,721,000 at 31 March
    2006, including 660,000 business devices such as Vodafone Mobile Connect 3G/GPRS
    data cards. Prior to the announcement of the disposal of Vodafone Japan in
    March 2006, the Group registered its ten millionth consumer 3G device, when
    including 100% of the devices in Italy. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Other
    revenue increased to &pound;2,256 million, principally due to growth in revenue
    related to acquisition and retention activities in Spain, partially offset
    by a reduction in net other revenue, resulting principally from to a fall
    in the number of customers connected to non-Vodafone networks in the UK. A
    32.5% rise in the number of gross customer additions, partially offset by
    a fall in the average revenue for handset sales to new prepaid customers and
    a 24.3% increase in the number of upgrades, led to a 4.7% growth in revenue
    related to acquisition and retention activities to &pound;1,724 million. </font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted operating profit</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
    operating profit increased by 11.4% to &pound;9,280 million, comprising organic
    growth of 10.3% and favourable exchange rate movements of 1.1%. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Interconnect
    costs increased by 7.2% on an organic basis, as strong growth in outgoing
    voice usage was partially offset by cuts in termination rates in a number
    of markets and an increased proportion of outgoing traffic being to other
    Vodafone customers, which does not result in interconnect expense. The rise
    in the number of upgrades and the increased cost of upgrading customers to
    3G were the primary contributors to an 9.4% organic growth in acquisition
    and retention costs, net of attributable revenue, to &pound;2,985 million.
    Payroll and other operating expenses as a percentage of service revenue continued
    to fall, reaching 22.2% for the year to 31 March 2006 compared to 22.4% for
    the previous financial year. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The charge
    relating to the amortisation of acquired intangible assets was &pound;157
    million following acquisitions in the Czech Republic, India, Romania and South
    Africa in the current financial year. Depreciation and other amortisation
    increased, principally due to the net impact of the acquisitions and disposal
    in the current financial year and the ongoing expansion of 3G networks. </font></p>
</div>
<div style="float: right; width:48%">
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The Group&#146;s
    share of the result in associated undertakings, before non-recurring amounts
    related to business acquisitions and disposals, grew by 20.2% after the deduction
    of interest, tax and minority interest, and 16.8% before the deductions, primarily
    due to growth at Verizon Wireless in the US. The Group&#146;s share of the
    result in Verizon Wireless increased by 25.5% to &pound;2,112 million, before
    deduction of interest, tax and minority interest, with a particularly strong
    performance in the second half of the current financial year. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-mobile telecommunications</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
    from Other Operations increased by 22.3% to &pound;1,339 million for the current
    financial year, principally due to growth in Arcor, the Group&#146;s non-mobile
    operation in Germany. Adjusted operating profit increased to &pound;119 million
    from &pound;19 million in the previous financial year as a result of the revenue
    growth and cost efficiencies in Arcor and a reduced loss in the Group&#146;s
    other non-mobile operations. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Impairment losses</font></b>
<br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group recorded an impairment charge to the carrying value of goodwill in the
    current financial year of &pound;23,515 million in respect of the Group&#146;s
    operations in Germany (&pound;19,400 million) and Italy (&pound;3,600 million)
    reflecting a revision of the Group&#146;s view of the prospects for these
    businesses, particularly in the medium to long term, and a further &pound;515
    million in respect of the Swedish business following the announcement of its
    disposal. An impairment loss was recognised in the previous financial year
    of &pound;475 million in respect of the Group&#146;s Swedish operations and
    reflected fierce competition along with onerous 3G licence obligations. </font></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td colspan="6"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Investment
        income and financing costs</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td><font size="1">&nbsp;</font></td>
      <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td><font size="1">&nbsp;</font></td>
      <td colspan=3><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td><font size="1">&nbsp;</font></td>
      <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td><font size="1">&nbsp;</font></td>
      <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
          financing costs before dividends from investments</font></div></td>
      <td width="16%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(318</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
      <td width="16%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(293</font></td>
      <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td width="16%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.5</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Potential
          interest charges arising on settlement of outstanding tax issues</font></div></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(329</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(245</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes
          in the fair value of equity put rights and similar arrangements</font></div></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(161</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(67</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
        from investments</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">115.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        financing costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(767</font></b></td>
      <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(586</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net financing
    costs before dividends from investments increased by 8.5% to &pound;318 million
    as an increase in average net debt compared to the previous year was partially
    offset by gains on mark-to-market adjustments on financial instruments in
    the current financial year.</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Potential
    interest charges arising on the settlement of outstanding tax issues represents
    the Group&#146;s estimate of any interest that may be due to tax authorities
    when the issues are settled. This charge varies due to the interest rates
    applied by the tax authorities, the timing of tax payments and status of discussions
    on tax issues with the relevant tax authorities. At 31 March 2006, the provision
    for potential interest charges arising on settlement of outstanding tax issues
    was &pound;896 million. </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The change
    in the fair value of equity put rights and similar arrangements comprises
    the fair value movement in relation to the potential put rights held by Telecom
    Egypt over its 25.5% interest in Vodafone Egypt and the fair value of a financial
    liability in relation to the minority partners of Arcor, the Group&#146;s
    non-mobile operation in Germany. Further details in respect of these arrangements
    are provided in the section titled &#147;Liquidity and Capital Resources &#150;
    Option agreements&#148; and in note 24 to the Consolidated Financial Statements.
    </font></p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Taxation</font></b><font size="2">
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The effective
tax rate for the year to 31 March 2006 is (16.0)% compared to 25.7% for the prior
year. The negative effective tax rate arises as a result of the &pound;23,515 million
impairment losses recognised in the current financial year. These losses are not expected to be deductible for tax purposes so are not expected to create a future benefit. The effective tax rate, exclusive of the impairment losses, is 27.5% for the
current financial year, which is lower than the Group&#146;s weighted average tax rate as a result of the repurchase of shares in Vodafone Italy and favourable tax settlements, but has increased compared to the previous year as the prior year
benefited from finalising the reorganisation of the Group&#146;s German operations.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Basic loss per share</font></b>
<br>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic earnings per share from continuing operations fell from 8.12 pence to a loss per share of 27.66 pence for the current year. The basic loss per share is after a charge of 37.56
pence per share in relation to an impairment of the carrying value of goodwill, a further charge of 0.26 pence per share for the change in fair value of equity put rights and similar arrangements, and a credit of 0.05 pence per share for
non-recurring amounts relating to business acquisitions and disposals.</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating
  Results<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><b>
  </b></p>
<div style="float: left; width: 48%">
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit
  for the financial year from discontinued operations</font> </b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,268</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,396</font></td>
      <td width="2%" align="right"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1.7</font></td>
      <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating profit</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">455</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
        loss</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,900</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating
        (loss)/profit</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,445</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating
        income and expense</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        financing costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit
        before taxation</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,448</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">666</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
        on (loss)/profit</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(140</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">436</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit
        for the financial year</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,588</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
  </table>
  <table width="100%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
        a deferred tax credit of &pound;599 million in the year to 31 March 2005
        in respect of losses in Vodafone Holdings K.K. which became eligible for
        offset against profits of Vodafone K.K. following the merger of the two
        entities on 1 October 2004.</font></td>
    </tr>
  </table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 17 March 2006, the Group announced that an agreement had been reached to sell its 97.7% interest in Vodafone Japan to SoftBank. This resulted in the Group&#146;s operations in
  Japan being classified as an asset held for sale and being presented as a discontinued operation. The disposal was completed on 27 April 2006.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Following the announcement on 17 March 2006, the Group recognised an impairment loss of &pound;4,900 million in respect of Vodafone Japan. The recoverable amount of Vodafone Japan was
the fair value less costs to sell.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On completion of the disposal of Vodafone Japan in April 2006, a loss on disposal was recognised as the difference between the final sale proceeds less costs to sell and the carrying
value at the date of disposal. The loss on disposal includes, among other items, the cumulative exchange differences in respect of Vodafone Japan previously recognised in equity from 1 April 2004 through to completion.</font></font>
</p>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p32"></a>Review
    of Operations</font> <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Please refer
    to the Summary of Key Performance Indicators for Principal Markets on page
    37 and note 3 to the Consolidated Financial Statements.</font> </p>
  <p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
    businesses</font> <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
    operating companies are licensed on an arm&#146;s length basis to use the
    Vodafone brand and related trademarks. These arrangements have been reviewed
    and the charges for the use of the Vodafone brand and related trademarks were
    revised with effect from 1 April 2005 to reflect the positioning of the brand
    in the current markets. There is no material impact on the Group&#146;s overall
    operating profit. The impact of the change is to reduce individual operating
    company profitability with a corresponding increase in the profit attributable
    to the common functions segment, which forms part of the mobile telecommunications
    business.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In April 2006, the Group announced changes to the organisational structure of its operations, effective from 1 May 2006. The following results are presented in accordance with the
organisation structure in place for the year to 31 March 2006.</font>
</p></div>
<div style="float: right; width: 48%">
  <p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Germany</font></b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">currency</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,754</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,684</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.2</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.2</font></td>
      <td width="2%">&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading
        results</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
        services</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,304</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,358</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1.2</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
        services</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Messaging</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">836</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">800</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.5</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.6</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Data</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">254</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">162</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56.8</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56.8</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,394</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,320</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        other revenue</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">114</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6.6</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6.9</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect
        costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(732</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(734</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        direct costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(281</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(314</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10.5</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        acquisition costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(366</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(348</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.2</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.2</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        retention costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(349</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(330</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.8</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.6</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(412</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(425</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.1</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.0</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operating</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expenses</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(665</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(646</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.1</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased
        licence</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(342</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(342</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
        and other</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(865</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(830</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.2</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.3</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,496</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.3</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
  </table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
      <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue includes revenue of &pound;246 million (2005: &pound;242 million) which has been excluded from other revenue and deducted from acquisition and retention
costs in the trading results.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before impairment losses</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The German market has seen recent intensification in price competition, principally from new market entrants, together with high levels of penetration and further reductions in
termination rates. Despite this, Vodafone has continued to lead the market in the number of 3G customers, and has launched innovative products such as mobile TV and Vodafone Zuhause, which allows users to replace fixed line networks installed in
their homes. In addition, Vodafone launched HSDPA technology in March 2006.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total revenue increased by 1.2% as the benefits of a larger customer base and an increase in non-voice service revenue were partly offset by reduced voice pricing, in response to
aggressive competition, and a further termination rate cut in December 2005 from 13.2 to 11.0 eurocents per minute. The average customer base grew by 8.4% due to the attractiveness of promotions, including an offer which allowed prepaid customers to
pay a fixed charge for calls to fixed lines and other Vodafone customers, which was taken up by more than one and a quarter million customers, and new products such as Vodafone Zuhause, which had 448,000 registered customers at 31 March 2006. New prepaid tariffs, including a low priced internet only offer, and ongoing promotional activity, particularly in the last four months of the year, contributed to
total voice usage increasing by 13.7%. Excluding the termination rate cut in December 2005, service revenue growth would have been 3.1% in local currency. A further cut in termination rates is currently expected by the end of 2006.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice service revenue increased by 13.4% in local currency, driven primarily by strong growth of 56.8% in non-messaging data revenue. Vodafone maintained its leadership in the 3G
market, demonstrated by Vodafone live! with 3G customers generating over 3.1 million full track music downloads in the current financial year for Vodafone, more than any other mobile network operator in Germany. The number of active Vodafone live!
devices continued to increase, with 28.3% growth in the year. In the business segment, there were 241,000 Vodafone Mobile Connect 3G/GPRS data cards and 226,000 wireless push e-mail enabled devices registered on the network at 31 March 2006.
Messaging revenue increased 4.6%, in local currency, mainly as a result of promotional activities.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Overall cost efficiencies, counteracted by investments in customer acquisition and retention and an increase in Group charges for the use of the brand and related trademarks, which
represented 1.1% of service revenue, lead to an increase in adjusted operating profit of 1.3% in local currency to &pound;1,496 million. Growth in 3G customers and increased gross additions, partially offset by a rise in the proportion of low
subsidy prepaid</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p33"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">additions,
    led to a 5.2% increase in net acquisition costs. Interconnect costs decreased
    by 0.3%, as the termination rate cuts in the current and previous financial
    years more than offset the effect of higher voice usage. An increase in the
    number of customer upgrades resulted in a 5.6% increase in net retention costs.
    Adjusted operating profit was further impacted by additional depreciation
    charges from continued 3G network deployment.</font> </p>
  <p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Italy</font></b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">currency</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,363</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,273</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.1</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading
        results</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
        services</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,472</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,492</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.6</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.7</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
        services</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Messaging</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">600</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">532</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.8</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Data</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">98</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46.3</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45.2</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,170</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,091</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        other revenue</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.1</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect
        costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(681</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(701</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.9</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.1</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        direct costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(241</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(232</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        acquisition costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(78</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(71</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.6</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        retention costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(93</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(74</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.7</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(250</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(250</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operating</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expenses</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(572</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(497</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.1</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased
        licence</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(74</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
        and other</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(524</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(512</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.3</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,672</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <table width="100%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes</font><font size="1">&nbsp;</font></td>
    </tr>
    <tr valign="top">
      <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
        includes revenue of &pound;178 million (2005: &pound;168 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention costs in the trading results.</font></td>
    </tr>
    <tr valign="top">
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy
        is a joint venture and is proportionately consolidated by the Group and
        hence the results reported represent the Group&#146;s average effective
        interest, being 76.8%.</font></td>
    </tr>
    <tr valign="top">
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before
        impairment losses</font></td>
    </tr>
  </table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Competition in Italy has continued to intensify with the mobile network operators competing aggressively on subsidies and, increasingly, on price, particularly in the second half of
  the year. Vodafone achieved average customer growth of 6.9% driven by successful promotions despite the competitive environment and a market penetration rate well in excess of 100% due to customers having more than one SIM.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In local currency, total revenue rose by 2.0%, reflecting the increase in service revenue which was driven primarily by continuing growth in non-voice services as voice revenue
declined marginally following an average 20.5% reduction in termination rates from September 2005. Excluding the impact of the termination rate cut, service revenue increased by 5.2% in local currency. Strong promotional activities, for example free
calls after the first minute and free text messages for a small activation fee which were taken up by more than ten million customers, and the increase in the customer base led to a rise of 5.1% in voice usage and a 41.7% increase in messaging,
including a 261% growth in MMS usage. An increase in the number of SIMs per user and competitive pressures led to a reduction in activity rates, especially in the second half of the year, and an increase in blended churn from 17.2% to 18.7%.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice service revenue rose by 16.5% in local currency, primarily driven by a 12.9% rise in messaging revenue. Increased penetration of 3G devices, a focus on retaining high value
customers, increased usage of Vodafone live! and Vodafone Mobile Connect data cards and attractive data promotions were the main contributors to 45.2% growth in non-messaging data revenue.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In local currency, adjusted operating profit fell by 1.3% due to the impact of an increase in Group charges for the use of brand and related trademarks, which represented
approximately 1.1% of service revenue, investment in customer acquisition and retention and higher marketing spend in response to the competitive pressures, along with the increased costs from the continued roll out of the 3G network. Strong
upgrade</font>
</p></div>
<div style="float: right; width: 48%">

  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">activities
    and a focus on high value customers in response to aggressive competition
    led to the rise in retention costs, whilst handset promotions adversely impacted
    acquisition costs, especially in the first half of the year. Interconnect
    costs fell due to the cut in termination rates combined with promotions focusing
    on calls to other Vodafone and fixed-line numbers, which incur lower interconnect
    costs, especially in the second half of the year. Other direct costs increased
    3.8%, primarily as a result of an increase in content provision costs arising
    from the increase in data service usage.</font> </p>
  <p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Spain</font></b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">currency</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td>
        <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,995</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,261</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.5</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.6</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc">
<hr noshade size=2></td>
      <td>
        <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading
        results</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
        services</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,093</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,558</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
        services</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Messaging</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">417</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">340</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.6</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Data</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">105</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">65</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61.5</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">62.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td>
        <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,615</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,963</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.0</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        other revenue</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect
        costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(634</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(540</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.4</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.5</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        direct costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(329</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(263</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.1</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.4</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        acquisition costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(274</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(246</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.4</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.7</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        retention costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(249</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(172</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44.8</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(151</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(140</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operating</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expenses</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(611</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(468</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30.6</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30.7</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased
        licence</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(69</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(69</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
        and other</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(336</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(292</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.1</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td>
        <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.6</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc">
<hr noshade size=2></td>
      <td>
        <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
  <table width="100%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
    </tr>
    <tr>
      <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
        includes revenue of &pound;374 million (2005: &pound;296 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention costs in the trading results.</font></td>
    </tr>
  </table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone continued to perform strongly in Spain, in revenue growth and profitability, despite an increasingly competitive market, through promotions and competitive tariffs attracting
  new customers and encouraging prepaid customers to migrate to contract tariffs.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total revenue for the financial year increased by 22.6% in local currency, due principally to a rise in service revenue achieved from an 18.5% growth in the average customer base and
an improvement in ARPU, notwithstanding a 10.6% cut in the termination rate in November 2005. The launch of attractive tariffs, successful promotional campaigns and the offer of an appealing handset portfolio increased the average customer base and
encouraged a further increase in the proportion of contract customers from 46.9% at 31 March 2005 to 49.6% at 31 March 2006. These factors contributed to a 34.0% increase in total voice usage compared with the previous financial year and a reduction
in blended churn from 21.9% at 31 March 2005 to 20.9% at 31 March 2006.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The principal driver behind the 23.0% growth in messaging revenue in local currency was a 23.1% increase in messaging usage due to the higher customer base and targeted promotions.
The growth of 62.1% in non-messaging data revenue was due to an increase of 814,000 in the number of registered 3G devices and the success of data solutions, which have contributed to Vodafone leading the 3G market in Spain, along with an 84.3%
increase in the number of Vodafone live! devices.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted operating profit increased as a percentage of service revenue, as cost reductions were only partially offset by the impact of the increased Group charge for use of the brand
and related trademarks. Interconnect costs fell as a proportion of service revenue, due to promotions which encouraged calls to be made to Vodafone and fixed-line numbers, which incur lower interconnect costs, and the cut in termination rates. A
higher proportion of prepaid gross customer additions, which have a lower per unit acquisition cost, particularly in the first half of the financial year led to acquisition costs</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</font></TD>
    <TD width="3%" align="right"><font color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">33</font></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p34"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p><font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating
  Results<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>
  </b></font></font></p>
<div style="float: left; width: 48%">
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">falling
    as a proportion of service revenue compared to the previous financial year.
    These relative cost reductions were offset by the cost of upgrading customers
    to 3G handsets, migrating prepaid customers to contract tariffs and a larger
    customer base, reflected in a 45.3% increase in net retention costs. Other
    direct costs increased mainly due to increased content provision costs resulting
    from higher usage of the expanded offering on the Vodafone live! platform.</font>
  </p>
  <p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">United
    Kingdom</font></b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,048</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,065</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.3</font></td>
      <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading
        results</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
        services</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,642</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,672</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.8</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
        services</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Messaging</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">705</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">684</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Data</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">221</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55.6</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,568</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,498</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        other revenue</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">135</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">177</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(23.7</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect
        costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(862</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(771</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        direct costs</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(355</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(367</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.3</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        acquisition costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(380</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(388</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2.1</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        retention costs</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(395</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(391</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(391</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(403</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.0</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operating expenses</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(697</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(646</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased
        licence amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(333</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(333</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
        and other amortisation</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(592</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(597</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.8</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating profit</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10.4</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
        includes revenue of &pound;345 million (2005: &pound;390 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention
costs in the trading results.</font></td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone UK continued to see strong growth in its customer base, without a corresponding increase in acquisition and retention investment, despite the UK being one of the most
  competitive markets in which the Group operates, with mobile penetration rates in excess of 100%. Enhanced data offerings led to strong growth in non-messaging data revenue and Vodafone now has over 1 million registered 3G devices.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total revenue fell by 0.3%, as a 1.6% increase in service revenue was offset by a fall in equipment and other revenue. Service revenue grew by 3.2%, excluding the effect of the
September 2004 termination rate cut, benefiting from an increase in average customers of 7.8%, partially offset by falling ARPU, notwithstanding a rise in usage. New customer offerings, including Stop the Clock, helped to stimulate a 10.1% increase
in total voice usage, but this was offset by changes in prices during the year to improve competitiveness in the market, leading to an overall 0.8% decrease in voice revenue, which grew by 1.2% excluding the effect of the termination rate cut. A
continuing focus on customer retention and an increasing proportion of customers on 18 month contracts had a positive impact on contract customer churn which fell from 22.7% to 21.5%, although blended churn increased to 32.1%, including the effect
of increased prepaid customer self-upgrades, consistent with market trends.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice service revenue increased by 12.1%, driven largely by the success of enhanced data offerings. Growth of 843,000 over the financial year in registered 3G devices and the
continued success of Vodafone Mobile Connect data cards and wireless push e-mail devices contributed to non-messaging data revenue increasing by 55.6%. Combined voice and messaging promotions led to an 18.1% increase in total messaging usage,
although this was partially offset by a decline in the average price per message, and resulted in a 3.1% rise in messaging revenue.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The rise in interconnect costs and the cost of one-off call centre closures, as well as an increase in Group charges for use of the brand and related trademarks, which represented
approximately 1.1% of service revenue, were partially offset by efficiencies in overheads and acquisition and retention costs, leading to a fall in adjusted operating profit of 10.3%. Interconnect costs increased by 11.8%, following an increase in
total usage, combined with an increase in the proportion of voice calls made to customers of other mobile network operators, as customers optimise cross-network bundled tariffs, partially offset by the termination rate cut. Despite higher gross
additions and upgrades, especially in the first half of the year, and a higher proportion of 3G connections, acquisition and retention costs were kept stable with the prior year, mainly due to an</font>
</p></div>
<div style="float: right; width: 48%">
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">increase
    in direct sales activity, SIM only promotions and a higher proportion of prepaid
    additions with lower subsidies. Payroll was 3% lower than the prior year and
    other operating expenses were lower than the prior year, excluding one-off
    call centre closures and the increase in Group charges for use of the brand
    and related trademarks, driven by the continued benefits of a structured cost
    reduction plan.</font> </p>
  <p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US
    &#150; Verizon Wireless</font></b></p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="3" align="right"><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">currency</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</font></b></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.9</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.8</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
        of result in</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">associated</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">undertaking</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        profit</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,112</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,683</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.5</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.5</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(204</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(187</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.1</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.4</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(116</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(91</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.5</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.5</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
        interest</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(60</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(51</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.6</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.9</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.8</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The US mobile telecommunications market has seen continued significant growth in customer numbers over the last twelve months, with penetration reaching an estimated 72% at 31 March
2006. In this environment, Verizon Wireless continued to increase its market share and improve its market leading margin performance.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Verizon Wireless outperformed its competitors with record net additions, increasing the proportionate customer base by 16.6% over the financial year to 23,530,000 and improving
customer market share to approximately 25% whilst also maintaining the proportion of contract customers at 94.5% of the total customer base at 31 March 2006. The strong customer performance benefited from continuing improvements in customer loyalty,
with a reduction in blended churn of 2.5 percentage points to 14.7% compared with the previous financial year, the lowest in the US mobile telecommunications industry.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In local currency, Verizon Wireless&#146; revenue increased by 14.9% due to the strong customer growth, partially offset by a fall in ARPU of 1.9%. The ARPU decline primarily resulted
from an increase in the proportion of family share customers and voice tariff pricing changes implemented early in 2005, which included increases in the size of bundled minute plans.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice service revenue increased by more than 100% compared with the previous financial year and represented 8.9% of service revenue for the current year. Continued increases in
messaging revenues were augmented by strong growth from data products, including Verizon Wireless&#146; consumer broadband multimedia offering, wireless email and broadband data card service. Verizon Wireless&#146; next-generation EV-DO network is
currently available to about 150 million people, approximately half the US population. This investment has paved the way for the launch of innovative new data services in areas such as full track music downloads and location based services.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In local currency, the Group&#146;s share of Verizon Wireless&#146; operating profit increased by 21.5%, driven by revenue growth and maintaining a leading cost efficiency position in
the US market. The Group&#146;s share of the tax attributable to Verizon Wireless of &pound;116 million for the year ended 31 March 2006 relates only to the corporate entities held by the Verizon Wireless partnership. The tax attributable to the
Group&#146;s share of the partnership&#146;s pre-tax profit is included within the Group tax charge.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone and Verizon Wireless are engaged in a number of joint projects, predominantly focusing upon bringing global services to their customers. The financial year saw the
introduction of two new data roaming services for Verizon Wireless customers, in addition to the launch of new handsets for the global phone proposition, all of which leverage the Vodafone footprint.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Verizon Wireless continued to strengthen its spectrum position with the completion of the purchase of several key spectrum licences, including licences from Nextwave, Leap Wireless
and Metro PCS and through participation in the FCC&#146;s Auction 58, which took place in February 2005, with licences being granted in May 2005.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p35"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other
  Mobile Operations</font></b></p>
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD align=left></TD>
      <TD align=left> </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left> </TD>
      <TD align=left></TD>
      <TD align=left> </TD>
      <TD align=left></TD>
      <TD align=left></TD>
      <TD align=left></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD colspan=4 align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</FONT> </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Local</font>
      </TD>
      <TD align=right valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font>
      </TD>
      <TD colspan=4 valign="bottom"> <HR size=1 noshade> </TD>
      <TD valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font>
      </TD>
      <TD valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font>
      </TD>
      <TD valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font>
      </TD>
      <TD align="right" valign="middle"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">currency</font>
      </TD>
      <TD valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <B><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</FONT></B>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</FONT>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</FONT>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">change</FONT></TD>
      <TD align=right valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <B><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT></B>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</FONT>
      </TD>
      <TD align=left valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
      <TD align=right valign="bottom"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</FONT></TD>
      <TD align=right valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD>&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
        revenue</FONT></B></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</FONT></TD>
      <TD width="10%" align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,812</FONT></B>
      </TD>
      <TD width="2%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="10%" align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,474</FONT>
      </TD>
      <TD width="2%" align=left><font size="2">&nbsp;</font></TD>
      <TD width="10%" align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.7</FONT>
      </TD>
      <TD width="2%" align=left><font size="2">&nbsp;</font></TD>
      <TD width="10%" align=left><font size="2">&nbsp;</font></TD>
      <TD width="2%" align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
        ventures</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,470</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.2</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:
        intra-segment revenue</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52.4</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,250</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,637</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.1</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.6</FONT></TD>
      <TD align=right><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD><HR noshade size=2></TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</FONT></B></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</FONT></B><SUP><FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</FONT></SUP></font></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,445</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,368</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.6</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
        ventures</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">363</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">305</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.0</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Associated</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">undertakings</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">695</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">671</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.6</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,503</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,344</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.8</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.4</FONT></TD>
      <TD align=right><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD><HR noshade size=2></TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Trading
        results</FONT></B></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice
        services</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,313</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,070</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.5</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
        services</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Messaging</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,017</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">790</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.7</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Data</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">200</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77.0</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,530</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,973</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.3</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        other revenue</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(1)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">137</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.5</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect
        costs</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,698</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,367</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.2</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        direct costs</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(727</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(568</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.0</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        acquisition costs</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(1)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(443</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(393</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.7</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        retention costs</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(1)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(358</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(267</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.1</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payroll</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(624</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(531</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.5</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operating</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expenses</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(2)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,531</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,140</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.3</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquired
        intangibles</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(157</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchased
        licence</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(129</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(100</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29.0</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
        and other</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amortisation</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(2)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,192</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,044</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.2</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
        of result in</FONT></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">associates</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(2)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">695</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">671</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.6</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <font size="2"><B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
        operating</FONT> <FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">profit</FONT></B><SUP><FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</FONT></SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,503</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,344</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.8</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.4</FONT></TD>
      <TD align=right><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD><HR noshade size=2></TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
        Share in result of associates</FONT></B></TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font> </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        profit</FONT><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><SUP>(2)</SUP></font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,044</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,020</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.4</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">185.7</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax</FONT></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(329</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(342</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3.8</FONT>
      </TD>
      <TD align=left> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</FONT></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=1> </TD>
      <TD><HR noshade size=1></TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD> <HR noshade size=1> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">695</FONT></B>
      </TD>
      <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">671</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=right> <FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.6</FONT>
      </TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
      <TD align=left><font size="2">&nbsp;</font></TD>
    </TR>
    <TR>
      <TD> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD bgcolor="#cccccc"> <HR noshade size=2> </TD>
      <TD><HR noshade size=2></TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD> <HR noshade size=2> </TD>
      <TD><font size="2">&nbsp;</font></TD>
    </TR>
  </TABLE>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue
      includes revenue of &pound;583 million (2005: &pound;554 million) which
      has been excluded from other revenue and deducted from acquisition and retention
      costs in the trading results.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before
      impairment losses and non-recurring amounts related to acquisitions and
      disposals.</font></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total revenue for the Group&#146;s Other Mobile Operations increased by 21.1%, or 12.6% on an organic basis. The net impact of acquisitions in the Czech Republic, India, Romania and
South Africa and the disposal of the Group&#146;s Swedish operations during the year ended 31 March 2006 increased reported revenue growth by 6.8%. Favourable exchange rate movements accounted for 1.7% of the remaining difference between reported
and organic growth. The increase in total service revenue was principally driven by an increase in the average customer base of 26.5% excluding the impact of the acquisitions and disposal and of 44.0% including the impact of the acquisitions and
disposal. This effect was partially offset by cuts in termination rates in certain markets, reduced ARPU from the launch of more competitive tariffs and an increase in the number of lower usage prepaid customers.</font>
</p></div>
<div style="float: right; width: 48%">
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Excluding
    the impact of termination rate cuts, service revenue growth would have been
    25.0%. Messaging and non-messaging data revenue grew strongly, increasing
    by 18.6% and 74.1%, respectively, on an organic basis and by 28.7% and 77.0%,
    respectively, including the impact of acquisitions, disposals and exchange
    rate movements.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
    operating profit increased by 6.8%, or 6.4% on an organic basis, over the
    comparative period, with 0.5% of the difference due to the acquisitions and
    disposal in the current financial year, offset by 0.9% resulting from favourable
    foreign exchange rate movements. The reported growth in adjusted operating
    profit in the year was impacted by a reduction in the profitability of certain
    highly competitive markets, in particular Australia and the Netherlands, though
    these factors were partially offset by the profit contributed by acquisitions
    in the year and the impact of the disposal of the Group&#146;s Swedish operations,
    as well as higher depreciation and purchased licence amortisation, following
    the launch of 3G services in Australia and New Zealand, and the amortisation
    of identifiable intangible assets from the acquisitions in the current financial
    year.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other
    Mobile subsidiaries<br>
    </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In Greece,
    service revenue grew by 9.4% when measured in local currency, due primarily
    to a 13.6% rise in the average customer base. ARPU decreased by 3.7% year-on-year,
    mainly due to a reduction in termination rates of 16.8% in September 2004.
    In local currency, service revenue growth was 12.0% excluding the termination
    rate cut. An increasing emphasis on retaining customers by encouraging prepaid
    to contract customer migration resulted in churn decreasing to 25.0% for the
    current financial year from 29.7% in the previous year.</font></font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
    revenue in Egypt, when measured in local currency, grew by 36.2%, primarily
    as a result of an increase in the average prepaid customer base of 82.0% which
    was driven by new innovative tariffs improving access and affordability in
    the market place. Revenue market share increased by 3.8 percentage points
    in the 2006 financial year to 51.8%.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Competition
    in Portugal intensified during the year with aggressively priced no-frills
    offerings by competitors which, combined with cuts in the termination rate
    which resulted in the average termination rate this year being 28.3% lower
    than last year, led to local currency service revenue growth being restricted
    to 1.6%.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the
    Netherlands, an increase of 3.5% in service revenue and a 10.0% growth in
    the average customer base was achieved.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
    Australia increased its customer base by 16.0%, and local currency service
    revenue by 11.8% due to the popularity of the capped plans, which have resulted
    in a significant increase in outgoing voice usage, whilst adversely impacting
    outgoing voice revenue per minute and interconnect costs. 3G services were
    launched on 31 October 2005, with strong uptake resulting in 171,000 consumer
    3G devices being registered on the network by 31 March 2006.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New Zealand
    achieved service revenue growth of 8.5%, driven by a 12.3% growth in the average
    customer base, due principally to the launch of competitive promotions during
    the year. 3G services were launched on 10 August 2005, with 103,000 3G devices
    registered by the end of the financial year.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In Ireland,
    service revenue grew by 5.9%, primarily due to an increase of 9.2% in total
    voice usage following a 5.9% increase in the average customer base. Voice
    usage per customer in Ireland remains the highest of all Vodafone&#146;s European
    subsidiaries.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 5 January
    2006, the Group announced that it had completed the sale of its 100% interest
    in Vodafone Sweden to Telenor, the pan-Nordic telecommunications operator.
    Vodafone and Telenor have agreed the terms of a Partner Market Agreement in
    Sweden, allowing Telenor&#146;s mobile customers in Sweden and Vodafone customers
    to continue to benefit from Vodafone&#146;s global brand, products and services
    in Sweden.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
    revenue growth in Hungary and Albania, when measured in local currency, was
    13.9% and 16.2% respectively. Vodafone Romania increased service revenue by
    39.0% in local currency compared with the previous financial year, assuming
    the Group&#146;s increased equity interest is reflected in the whole of the
    current and prior financial year. Additionally, Vodafone&#146;s newly acquired
    subsidiaries in the Czech Republic and Romania have performed ahead of the
    Group&#146;s expectations at the time of the acquisition.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other
    Mobile joint ventures<br>
    </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
    proportionate customers for the Group&#146;s joint ventures, excluding Italy,
    grew organically by 43.4% in the year to 31 March 2006, with strong growth
    in markets with relatively low penetration rates. The customer growth was
    the primary reason for the 19.0% increase in adjusted operating profit for
    other mobile joint ventures.</font></font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
    the financial year, the Group completed the acquisition of a 10% economic
    interest in Bharti Tele-Ventures Limited (now renamed Bharti Airtel Limited),
    a leading national mobile operator in India.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p36"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p><font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating
  Results<br>
  </font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font>
</p>
<div style="float: left; width: 48%">
  <p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
    also increased its effective shareholding in its joint venture in South Africa,
    Vodacom, from 35% to approximately 50% following the acquisition of VenFin.</font>
  </p>
  <p> <font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Other
    Mobile associated undertakings<br>
    </b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">SFR,
    the Group&#146;s associated undertaking in France, reported strong growth
    in revenue and operating profit, principally as a result of an 8.1% increase
    in average customers compared with the previous financial year. Usage of both
    voice and non-voice services increased in the year and SFR had a total of
    5,268,000 Vodafone live! customers at </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
    March 2006. SFR continues to grow its 3G base and at 31 March 2006 had registered
    1,352,000 3G devices on its network.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 30 November
  2005, the French competition authority fined SFR </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">220 million for engaging
  in anti-competitive agreements that distorted market competition. SFR is in
  the process of appealing this decision.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 7 April
  2006, the Swiss Competition Commission notified Swisscom Mobile, the Group&#146;s
  associated undertaking in Switzerland, of its intention to impose a fine of
  CHF489 million in relation to abusive pricing on the mobile wholesale call termination
  market between 1 April 2004 and 31 May 2005.</font> </p>
  <p> <font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Other
    Mobile investments<br>
    </b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">China
    Mobile, in which the Group has a 3.27% stake, and is accounted for as an investment,
    grew its customer base by 21.9% in the year to 260.6 million at 31 March 2006.
    Dividends of &pound;41 million were received in the year.</font> </p>
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Common
  functions</font></b></p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=4 align="center"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
      ended 31 March</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=4> <hr noshade size=1></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td align="right">&nbsp;</td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td align="right">&nbsp;</td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145</font></b></td>
    <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.9</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
      operating profit/(loss)</font></b></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">211</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common functions
  include the results of Partner Markets and unallocated central Group costs and
  charges. Adjusted operating profit increased primarily due to a revision of
  the charges made to Vodafone operating companies for the use of the Vodafone
  brand and related trademarks which took effect from 1 April 2005.</font></p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other operations</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center" colspan=4><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
      ended 31 March</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=4><hr noshade size=1></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,320</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.5</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,339</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.3</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjusted
      operating profit/(loss)</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117.2</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(55.6</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">119</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">526.3</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other operations
  comprise interests in fixed line telecommunications businesses in Germany, France
  and India.</font> </p>
  <p> <font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Germany<br>
    </b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
    local currency, Arcor&#146;s revenue increased by 20.7%, primarily due to
    customer and usage growth, partially offset by tariff decreases in the competitive
    market. The incumbent fixed line market leader continues to drive this intensive
    competition, although Arcor further strengthened its position as the main
    competitor. Contract ISDN voice customers increased by 103% to 1,447,000 and
    DSL (broadband internet) customers by 166% to 1,209,000 in the current financial
    year. Arcor increased its share of the DSL market to 11%. Revenue growth and
    cost efficiencies led to the substantial improvement in adjusted operating
    profit.</font> </p>
  <p> <font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Other<br>
    </b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    merger of Cegetel, the Group&#146;s associated undertaking, and Neuf Telecom
    closed on 22 August 2005, giving the Group a proportionate interest of 12.4%
    in the leading alternative operator for fixed line telecommunications services
    in France. The new entity, Neuf Cegetel, has the largest alternative broadband
    network in France, with 70% population coverage.</font> </p>
</div>
  <div style="float: right; width: 48%">
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
    GAAP Reconciliation<br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    principal differences between US GAAP and IFRS, as they relate to the Consolidated
    Financial Statements, are the accounting for goodwill and intangible assets
    before 29 September 2005, the accounting for income taxes, the capitalisation
    of interest and the timing of recognition of connection revenue and expenses.</font>
  </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the year
  ended 31 March 2006, revenue from continuing operations under US GAAP was &pound;23,756
  million compared with revenue from continuing operations under IFRS of &pound;29,350
  million for the same period. The difference relates to the equity accounting
  of Vodafone Italy under US GAAP, the treatment of Vodafone Sweden as discontinued
  under US GAAP and the release of connection revenue deferred prior to the adoption
  of EITF 00-21 on 1 October 2003, which is required to be recognised over the
  period a customer is expected to remain connected to the network under US GAAP.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss
  under US GAAP for the year ended 31 March 2006 was &pound;13,310 million, compared
  with a loss for the financial year under IFRS of &pound;21,821 million for the
  same period. The lower net loss under US GAAP was mainly driven by higher amortisation
  charges of other intangible assets and share of result in equity method investments,
  more than offset by income taxes and the reversal of impairment losses.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The reconciliation
  of the differences between IFRS and US GAAP is provided in note 38 to the Consolidated
  Financial Statements.</font> </p>
  </div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p37"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Summary
  of Key Performance Indicators<br>
  for Principal Markets</font> </p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Germany</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers
        (&#146;000s)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,191</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27,223</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepaid
      (%)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">53.3</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Activity
        level (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(2)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90.6</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">93.7</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
        (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.2</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18.3</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
        monthly ARPU (&euro;)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Prepaid</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8.5</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.8</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Contract</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">39.2</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39.9</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Blended</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23.3</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.9</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      voice minutes (millions)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,787</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,560</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      live! active devices (&#146;000)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,214</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,845</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G devices
        (&#146;000)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,025</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">358</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Italy</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers
        (&#146;000s)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,490</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,280</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepaid
      (%)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">92.2</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Activity
        level (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91.2</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92.3</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
        (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18.7</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.2</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
        monthly ARPU (&euro;)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(2)</sup></font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Prepaid</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24.3</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Contract</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">74.7</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76.8</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Blended</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28.5</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29.9</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      voice minutes (millions)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,604</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28,170</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      live! active devices (&#146;000)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,097</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,113</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G devices
        (&#146;000)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,250</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">511</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
</table>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Spain</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers
        (&#146;000s)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,521</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,472</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepaid
      (%)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">50.4</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Activity
        level (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94.3</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94.6</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
        (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.9</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.9</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
        monthly ARPU (&euro;)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(2)</sup></font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Prepaid</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15.1</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.1</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Contract</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">56.9</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57.4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Blended</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">35.6</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.5</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      voice minutes (millions)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,835</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,793</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      live! active devices (&#146;000)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,514</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,992</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G devices
        (&#146;000)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">88</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table></div>
<div style="float: right; width: 48%">
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td>&nbsp;</td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td align="right">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">United
        Kingdom</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers
        (&#146;000s)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,304</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="2%" align="right"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,324</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepaid
        (%)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61.1</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Activity
        level (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">88.4</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">90.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
        (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">32.1</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29.7</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
        monthly ARPU (&pound;)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(2)</sup></font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Prepaid</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9.4</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.3</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Contract</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">45.7</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">47.4</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Blended</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24.0</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.5</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        voice minutes (millions)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,059</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,486</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
        live! active devices (&#146;000)</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,181</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,443</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3G
        devices (&#146;000)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,033</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">190</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
  </table>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US &#150;
      Verizon Wireless</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customers
        (&#146;000s)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,530</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,173</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Churn
        (%)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14.7</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.2</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Average
        monthly ARPU ($)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(2)</sup></font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Blended</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">51.4</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52.4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquistion
        and retention costs as a percentage of service revenue (%)</font></div></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12.4</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.9</font></td>
      <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1>
      </td>
    <td><hr noshade size=1>
      </td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>

  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
    <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
      <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See
      page 49 for definitions.</font></td>
  </tr>
  <tr>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
      the year ended 31 March 2006, the definition of an active customer was revised
      to one who either pays a monthly fee or has made or received a chargeable
      event in the last three months. The information for the year ended 31 March
      2005 has been restated using this revised definition.</font></td>
  </tr>
</table></div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p38"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p>&nbsp;</p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial
  Position and Resources</font></b> </p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p38a"></a>Balance
        Sheet</font></td>
      <td align="center" colspan=3>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="center">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years
        ended 31 March</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan=3><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-current
        assets</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
        assets</font></td>
      <td width="12%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69,118</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97,148</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(28.9</font></td>
      <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property,
        plant and equipment</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,660</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,442</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21.7</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments
        in associated undertakings</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,197</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.6</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        non-current assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,639</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,962</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10.9</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">108,614</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137,786</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21.2</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Current
        assets</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,532</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,411</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20.0</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Assets
        included in disposal group</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">held
        for sale</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,592</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
        assets</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13.9</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
        equity</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,312</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,648</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(24.9</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-current
        liabilities</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term
        borrowings</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,750</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,190</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.0</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
        tax liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,670</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,849</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.9</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        non-current liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">951</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">893</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.5</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,371</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,932</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.4</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Current
        liabilities</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term
        borrowings</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,448</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,003</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        taxation liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,448</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,353</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.2</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        current liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,616</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,261</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7.8</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,512</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,617</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.1</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Liabilities
        included in disposal</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">group
        held for sale</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,543</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
        equity and liabilities</font></b></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13.9)</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
  </table>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
  assets</font> <br>
  <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Intangible
  assets</font></b> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Group&#146;s intangible assets were &pound;69.1 billion, with goodwill
  comprising the largest element at &pound;52.6 billion (2005: &pound;81.0 billion).
  The balance has decreased from &pound;97.1 billion (&pound;88.1 billion excluding
  discontinued operations) at</font> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
  March 2005 mainly as a result of a &pound;23.5 billion impairment charge in
  the 2006 financial year in respect of the carrying value of goodwill of Germany,
  Italy and Sweden. Refer to note 10 to the Consolidated Financial Statements
  for further information on the impairment losses. Other movements resulted from
  &pound;4.7 billion of intangible assets arising on acquisitions in the 2006
  financial year, &pound;0.6 billion of additions, primarily in relation to computer
  software, &pound;1.0 billion of exchange movements, partially offset by &pound;1.6
  billion of amortisation charges and &pound;0.2 billion of disposals, mainly
  in relation to the goodwill related to Vodafone Sweden.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Property,
  plant and equipment</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The most significant
  component of property, plant and equipment is network infrastructure, which
  is fundamental to the Group being able to provide its services. Property, plant
  and equipment decreased from &pound;17.4 billion (&pound;12.9 billion excluding
  Japan) at 31 March 2005 to &pound;13.7 billion at 31 March 2006 as a result
  of &pound;3.4 billion of additions during the year and &pound;0.9 billion of
  additions arising on acquisition as well as &pound;0.3 billion of foreign exchange
  movements, partially offset by &pound;3.1 billion of depreciation charges and
  &pound;0.7 billion of disposals including &pound;0.6 billion in relation to
  the sale of the Group&#146;s operations in Sweden. At 31 March 2006, network
  infrastructure assets of &pound;10.1 billion (2005: &pound;14.1 billion) represented
  73.6% (2005: 80.8%) of total property, plant and equipment.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Investments
  in associated undertakings</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  investments in associated undertakings increased from &pound;20.2 billion at</font>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005
  to &pound;23.2 billion at 31 March 2006, mainly as a result of &pound;2.4 billion
  from the Group&#146;s share of the results of its associates after the deductions
  of interest, tax and minority interest, and favourable exchange rate movements
  of &pound;1.4 billion, offset by &pound;0.8 billion of dividends received.</font>
</p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other
  non-current assets</font></b> </font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other non-current
    assets mainly relates to other investments held by the Group, which totalled
    &pound;2.1 billion at 31 March 2006 compared to &pound;1.2 billion at 31 March
    2005, with the movement representing an increase in the listed share price
    of China Mobile in which the Group has an equity investment and foreign exchange
    movements, offset by a</font></p>
</div>
  <div style="float: right; width: 48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;0.5
  billion decrease in deferred tax assets, excluding discontinued operations &#150;
  see non-current liabilities below.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets
  decreased to &pound;7.5 billion at 31 March 2006 from &pound;9.4 billion at
  31 March 2005, mainly as a result of a &pound;1.0 billion reduction in cash
  and liquid investments and the reclassification of Vodafone Japan as discontinued
  operations.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity
  shareholders&#146; funds</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity
  shareholders&#146; funds decreased from &pound;113.8 billion at 31 March 2005
  to &pound;85.4 billion at 31 March 2006. The decrease comprises of the loss
  for the year of &pound;21.9 billion, equity dividends of &pound;2.8 billion,
  purchases of the Company&#146;s own shares of &pound;6.5 billion, a loss on
  the re-issue of treasury shares of &pound;0.1 billion and &pound;0.1 billion
  of other movements, partially offset by &pound;0.4 billion of own shares released
  on vesting of share awards, issue of new share capital of &pound;0.2 billion,
  a &pound;0.1 billion share-based payments charge and &pound;2.3 billion of other
  accumulated other recognised income and expense.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current liabilities</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
  liabilities increased to &pound;23.4 billion at 31 March 2006 from &pound;18.9
  billion at 31 March 2005, mainly due to the increase in borrowings, which is
  discussed further in &#147;Liquidity and Capital Resources&#148;. The deferred
  tax liability increased from &pound;4.8 billion at 31 March 2005 to &pound;5.7
  billion at 31 March 2006, which together with the &pound;0.5 billion decrease
  in deferred tax assets, arose primarily from a net &pound;0.4 billion in relation
  to acquisitions and disposals in the year, &pound;0.6 billion additional tax
  charges to the income statement and &pound;0.2 billion of foreign exchange movements
  &#150; refer to note 6 to the Consolidated Financial Statements. Non-current
  liabilities also includes &pound;0.1 billion (2005: &pound;0.1 billion) in relation
  to the deficit on defined benefit pension schemes &#150; refer to note 25 to
  the Consolidated Financial Statements.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current liabilities</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current liabilities
  increased to &pound;15.5 billion from &pound;14.6 billion.</font> </p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p38b"></a>Equity
  Dividends</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The table
  below sets out the amounts of interim, final and total cash dividends paid or,
  in the case of the final dividend for the 2006 financial year, proposed in respect
  of each financial year indicated both in pence per ordinary share and translated,
  solely for convenience, into cents per ordinary share at the Noon Buying Rate
  on each of the respective payment dates for such interim and final dividends.</font>
</p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td>&nbsp;</td>
      <td><b><font size="1">&nbsp;</font></b></td>
      <td align="right" colspan=5><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence
        per ordinary share</font></td>
      <td><b><font size="1">&nbsp;</font></b></td>
      <td align="right" colspan=5><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cents
        per ordinary share</font></td>
      <td><b><font size="1">&nbsp;</font></b></td>
    </tr>
    <tr>
      <td><font size="1"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Year
        ended</font></font></td>
      <td><b><font size="1">&nbsp;</font></b></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><b><font size="1">&nbsp;</font></b></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td align="left"> <hr noshade size=1></td>
      <td><b><font size="1">&nbsp;</font></b></td>
    </tr>
    <tr>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
        March</font></td>
      <td><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interim</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interim</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td><b><font size="1">&nbsp;</font></b></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.7224</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.7497</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4721</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.0241</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.1422</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.1663</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2003</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.7946</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.8983</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.6929</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.2939</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.4445</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.7384</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.9535</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.0780</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0315</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.7601</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.9899</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.7500</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.91</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.16</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.07</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.60</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.08</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.68</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.20</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.87</font></b></td>
      <td align="left"><font size="2"><b><sup><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1)</font></sup></b></font></td>
      <td align="right"><font size="2"><b><sup></sup><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.07</font></b></font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.83</font></b></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.73</font></b></td>
      <td><font size="2"><b><sup><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1)</font></sup></b>&nbsp;</font></td>
      <td align="right"><font size="2"><b><sup></sup><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.56</font></b></font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
</tr>
<tr>
      <td valign="top" width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The final dividend for the year was proposed on 30 May 2006 and is payable on 4 August 2006 to holders of record as of 7 June 2006. This dividend has been
translated into US dollars at the Noon Buying Rate at 31 March 2006 for ADS holders, but will be payable in US dollars under the terms of the deposit agreement.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has historically paid dividends semi-annually, with a regular interim dividend in respect of the first six months of the financial year payable in February and a final
dividend payable in August. The Board expects that the Company will continue to pay dividends semi-annually. In November 2005, the Board declared an interim dividend of 2.20 pence per share, representing a 15.2% increase over last year&#146;s
interim dividend.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In considering the level of dividends, the Board takes account of the outlook for earnings growth, operating cash flow generation, capital expenditure requirements, acquisitions and
divestments, together with the amount of debt and share purchases.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consistent with this, and developments to the Group&#146;s strategy, the Board has decided to target a 60% dividend pay out ratio taking effect for the 2006 financial year. The Board
is therefore recommending a final dividend of 3.87 pence, representing a 79.2% increase over last year&#146;s final dividend and bringing the total dividend for the year to 6.07 pence, an increase of 49.1% on last year&#146;s total dividend. The
dividend pay out ratio, being the declared interim and proposed final dividends per share as a percentage of adjusted earnings per share from continuing operations, in respect of the 2006 financial year of 60%, compared favourably with a pay-out
ratio for the 2005 financial year of 45%. It is the intention to grow future dividends on an annual basis in line with underlying earnings growth, maintaining dividends per share at approximately 60% of adjusted earnings per share.</font>
</p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash dividends,
    if any, will be paid by the Company in respect of ordinary shares in</font>
  </p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">pounds sterling
  or, to holders of ordinary shares with a registered address in a country which
  has adopted the euro as its national currency, in euro, unless shareholders
  wish to elect to continue to receive dividends in sterling, are participating
  in the Company&#146;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&#146;s Articles of Association, the
  sterling: euro exchange rate will be determined by the Company shortly before
  the payment date.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company
  will pay the ADS Depositary, The Bank of New York, its dividend in US dollars.
  The sterling: US dollar exchange rate for this purpose will be determined by
  the Company shortly before the payment date. Cash dividends to ADS holders will
  be paid by the ADS Depositary in US dollars.</font> </p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p39"></a>Contractual
  Obligations</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A summary
  of the Group&#146;s principal contractual financial obligations is shown below.
  Further details on the items included can be found in the notes to the Consolidated
  Financial Statements.</font> </p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td colspan="9" align="right"><font size="1">&nbsp;<b>&nbsp;&nbsp;</b>&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payments
        due by period<b> </b>&pound;m</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
    </tr>
    <tr>
      <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contractual
        obligations</font><font size="1"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&lt;1
        year</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1-3
        years</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3-5
        years</font></td>
      <td align="right"><b><font size="1">&nbsp;</font></b></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&gt;5
        years</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowings</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28,101</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,308</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,175</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,373</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,245</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        lease commitments</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,644</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">654</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">956</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">742</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,292</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital
        commitments</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">813</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">813</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
        commitments</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,159</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">855</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">187</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Telsim
        asset acquisition agreements</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,600</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,600</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        contractual cash obligations</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36,317</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,230</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,318</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,204</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,565</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
    </tr>
  </table>  <table width="100%" border=0 cellspacing=0 cellpadding=0>
    <tr>
      <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
    </tr>
    <tr>
      <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        above table of contractual obligations excludes commitments in respect
        of options over interests in Group businesses held by minority shareholders
        (see &#147;Option agreements and similar arrangements&#148;) and obligations
        to pay dividends to minority shareholders (see &#147;Dividends from associated
        undertakings and dividends to minority interests&#148;). Disclosures required
        by Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation
        No. 45, &#147;Guarantor&#146;s Accounting and Disclosure Requirements
        for Guarantees, Including Indirect Guarantees of Indebtedness of Others&#148;,
        are provided in note 31 to the Consolidated Financial Statements. The
        table also excludes obligations under post employment benefit schemes,
        details of which are provided in note 25 to the Consolidated Financial
        Statements. The table also excludes contractual obligations relating to
        the Group&#146;s discontinued operations in Japan, which were disposed
        of on 27 April 2006.</font></td>
    </tr>
    <tr>
      <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See
        note 24 to the Consolidated Financial Statements.</font></td>
    </tr>
    <tr>
      <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See
        note 30 to the Consolidated Financial Statements.</font></td>
    </tr>
    <tr>
      <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Primarily
        related to network infrastructure.</font></td>
    </tr>
    <tr>
      <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Predominantly
        commitments for handsets.</font></td>
    </tr>
  </table>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p39a"></a>Contingencies</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details of
  the Group&#146;s contingent liabilities are included in note 31 to the Consolidated
  Financial Statements.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A number
  of Vodafone subsidiaries acquired 3G licences through auctions in 2000 and 2001.
  An appeal was filed by Vodafone Group Services Limited on behalf of Vodafone
  Limited, along with appeals filed by other UK mobile network operators which
  were granted a 3G licence, with the VAT and Duties Tribunal on 18 October 2003
  for recovery of VAT on the basis that the amount of the licence fee was inclusive
  of VAT. The amount claimed by Vodafone Limited is approximately &pound;888 million.
  In August 2004, these claims were referred, jointly, to the ECJ and a hearing
  took place on 7 February 2006. A decision by the ECJ is expected within the
  next 12 to 15 months. The Group has not recognised any amounts in respect of
  this matter to date. In addition, the Group has made a claim for recovery of
  VAT in relation to 3G licence fees in Portugal, the Netherlands, Germany and
  Ireland. The Group may also pursue similar claims in certain other European
  jurisdictions.</font> </p>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p39b"></a>Liquidity
    and Capital Resources<br>
    </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
    flows</font> <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The major
    sources of Group liquidity for the 2006 financial year have been cash generated
    from operations, dividends from associated undertakings, borrowings through
    short term and long term issuances in the capital markets and asset disposals.
    For the year ended 31 March 2005, sources of Group liquidity were from cash
    generated from operations and dividends from associates. The Group does not
    use off-balance sheet special purpose entities as a source of liquidity or
    for other financing purposes.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  key sources of liquidity for the foreseeable future are likely to be cash generated
  from operations and borrowings through long term and short term issuances in
  the capital markets, as well as committed bank facilities. Additionally, the
  Group has a put option in relation to its interest in Verizon Wireless which,
  if exercised, could provide a material cash inflow. Please see &#147;Option
  agreements and similar arrangements&#148; at the end of this section.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  liquidity and working capital may be affected by a material decrease in cash
  flow due to factors such as reduced operating cash flow resulting from further
  possible business disposals, increased competition, litigation, timing of tax
  payments and the resolution of outstanding tax issues, regulatory rulings, delays
  in development of new services and networks, inability to receive expected revenue
  from the introduction of</font> </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">new services,
  reduced dividends from associates and investments or dividend payments to minority
  shareholders. Please see the section titled &#147;Risk Factors, Trends and Outlook&#148;,
  on pages 43 to 45. The Group anticipates a significant increase in cash tax
  payments and associated interest payments over the next three years due to the
  resolution of long standing tax issues. The Group is also party to a number
  of agreements that may result in a cash outflow in future periods. These agreements
  are discussed further in &#147;Option agreements and similar arrangements&#148;
  at the end of this section.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Wherever
  possible, surplus funds in the Group (except in Albania, Romania and Egypt)
  are transferred to the centralised treasury department through repayment of
  borrowings, deposits and dividends. These are then on-lent or contributed as
  equity to fund Group operations, used to retire external debt or invested externally.</font>
</p>
<p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Decrease
  in cash in the year<br>
  </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
  the 2006 financial year, the Group increased its net cash inflow from operating
  activities by 7.9% to &pound;11,841 million, including a 10.3% increase to &pound;10,190
  million from continuing operations. The Group generated &pound;6,418 million
  of free cash flow from continuing operations, a reduction of 2.6% on the previous
  financial year, and an additional &pound;701 million from discontinued operations.
  Free cash flow from continuing operations decreased from the prior financial
  year due to a reduction in the dividends received from associated undertakings,
  principally Verizon Wireless, and an increase in capital expenditure which more
  than offset the increase in the net cash inflow from operating activities.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  holds its cash and liquid investments in accordance with the counterparty and
  settlement risk limits of the Board approved treasury policy. The main forms
  of liquid investments at 31 March 2006 were money market funds and bank deposits.</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right">&nbsp;</td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      cash flows from operating activities</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,841</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,979</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Continuing operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,190</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,240</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Discontinued operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,651</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,739</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,682</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,578</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of intangible fixed assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(690</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(699</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of property, plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,481</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,279</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of property, plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      free cash flow</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,378</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,647</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,682</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,578</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      from associated undertakings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">835</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,896</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      paid to minority shareholders in</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">subsidiary
      undertakings</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(51</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(32</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      from investments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      received</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">319</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">339</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      paid</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(721</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(744</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free
      cash flow</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,119</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,547</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Continuing operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,418</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,592</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
      Discontinued operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">701</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">955</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      cash outflow from acquisitions and disposals</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,587</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,017</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      cash flows from investing activities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(56</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity
      dividends paid</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,749</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,991</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      cash flows from financing activities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,555</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,764</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Decrease
      in cash in the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(828</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,112</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capital
  expenditure</font></b> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
  2006 financial year, &pound;4,481 million was spent on property, plant and equipment,
  an increase of 4.7% from the previous financial year. From continuing operations,
  the amount spent increased to &pound;3,634 million.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The cash
  outflow in intangible assets reduced from &pound;699 million in the previous
  financial year to &pound;690 million in the current financial year, with the
  largest element being expenditure on computer software.</font> </p>
<p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Dividends
  from associated undertakings and investments and dividends to minority shareholders</font></b>
  </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
  from the Group&#146;s associated undertakings and investments are generally
  paid at the discretion of the board of directors or shareholders of the individual
  operating</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p40"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial
  Position and Resources<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<div style="float: left; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">companies
  and Vodafone has no rights to receive dividends, except where specified within
  certain of the companies&#146; shareholders&#146; agreements, such as with SFR,
  the Group&#146;s associated undertaking in France. Similarly, the Group does
  not have existing obligations under shareholders&#146; agreements to pay dividends
  to minority interest partners of Group subsidiaries, except as specified below.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
  in the dividends received from associated undertakings and investments was an
  amount of &pound;195 million received from Verizon Wireless. Until April 2005,
  Verizon Wireless&#146; distributions were determined by the terms of the partnership
  agreement distribution policy and comprised income distributions and tax distributions.
  Since April 2005, tax distributions have continued and a new distribution policy
  is expected to be set in the future by the Board of Representatives of Verizon
  Wireless. Current projections forecast that tax distributions will not be sufficient
  to cover the US tax liabilities arising from the Group&#146;s partnership interest
  in Verizon Wireless until 2015 and, in the absence of additional distributions
  above the level of tax distributions during this period, will result in a net
  cash outflow for the Group. Under the terms of the partnership agreement, the
  board of directors has no obligation to provide for additional distributions
  above the level of the tax distributions. It is the expectation that Verizon
  Wireless will re-invest free cash flow in the business and reduce indebtedness
  for the foreseeable future.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
  year ended 31 March 2006, cash dividends totalling &pound;511 million were received
  from SFR in accordance with the shareholders&#146; agreement.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Verizon
    Communications Inc. (&#147;Verizon Communications&#148;) has an indirect 23.1%
    shareholding in Vodafone Italy and, under the shareholders&#146; agreement,
    can request dividends to be paid, provided that such dividends would not impair
    the financial condition or prospects of Vodafone Italy including, without
    limitation, its credit rating. No dividends were proposed or paid by Vodafone
    Italy during or since the year ended </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
    March 2006 but a share purchase programme occurred during the financial year,
    further details of which are provided on page 41.</font> </p>
<p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Acquisitions
  and disposals</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  invested a net &pound;3,643 million in acquisition and disposal activities,
  including a net cash outflow of &pound;56 million from the purchase and disposal
  of investments, in the year to 31 March 2006. The acquisitions are described
  in more detail under &#147;Business Overview &#150; History and Development
  of the Company&#148;.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An analysis of the main transactions in the 2006 financial year, including the changes in the Group&#146;s effective shareholding, is shown below:</font>
</p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td colspan="2">&nbsp;</td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisitions:</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech
        Republic (nil to 100%) and Romania (20.1% to 100%)<sup>(1)</sup></font></font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,840</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South
        Africa (35.0% to 49.9%)<sup>(1)</sup></font></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,444</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">India
        (nil to 10.0%)<sup>(1)</sup></font></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">849</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals:</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sweden
        (100% to nil)</font></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(658</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        net acquisitions and disposals, including investments</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">168</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,643</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td colspan="3"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
        are shown net of cash and cash equivalents acquired.</font></td>
    </tr>
  </table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 17 March
  2006, the Group announced an agreement to sell its 97.7% holding in Vodafone
  Japan to SoftBank. The transaction completed on 27 April 2006 with the Group
  receiving cash of approximately &yen;1.42 trillion (&pound;6.9 billion), including
  the repayment of intercompany debt of &yen;0.16 trillion (&pound;0.8 billion).
  In addition, the Group received non-cash consideration with a fair value of
  approximately &yen;0.23 trillion (&pound;1.1 billion), comprised of preferred
  equity and a subordinated loan. SoftBank also assumed external debt of approximately
  &yen;0.13 trillion (&pound;0.6 billion).</font> </p>
<p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Special
  distribution of &pound;9 billion</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 17 March
  2006, the Group stated that it will make a special distribution of approximately
  &pound;6 billion in the 2007 financial year of the &pound;6.9 billion cash received
  following the completion of the sale of the Group&#146;s interest in Vodafone
  Japan. Through targeting a lower credit rating, the Group now plans to return
  a further &pound;3 billion, resulting in a total distribution of approximately
  &pound;9 billion.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This equates
  to 15p per ordinary share. Subject to shareholder approval, the method of distribution
  will be in the form of a B share arrangement with a share consolidation, which
  will reduce the Company&#146;s shares in issue. The B share arrangement provides
  for shareholder flexibility as to when and how cash is received, thereby allowing
  income tax and capital gains management for some shareholders. The Company will
  post a circular to shareholders, with full details of the B share arrangement
  and the consolidation, on or around 13 June 2006.</font> </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The consolidation,
  which will replace existing ordinary shares with fewer new ordinary shares,
  is intended to maintain the share price, subject to normal market movements,
  and, consequently, historic comparability. For non-US shareholders, the B shares
  will be redeemed by default, with shareholders receiving a capital distribution.
  They may, however, elect for certain alternatives. Non-US shareholders can elect
  to receive the 15 pence as a one off dividend or elect to receive the capital
  distribution over time at pre-determined dates. Payment in respect of the initial
  redemption is intended to be made on 11 August 2006 and for any shareholders
  electing to receive the one off 15 pence per B share dividend payment is also
  intended to be made on 11 August 2006. It is expected that US shareholders and
  American Depositary Receipt (&#147;ADR&#148;) holders will only be entitled
  to receive the return as a one off dividend.</font> </p>
<p> <b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share purchase
  programme</font></b> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When considering
  how increased returns to shareholders can be provided in the form of share purchases,
  the Board reviews the free cash flow, anticipated cash requirements, dividends,
  credit profile and gearing of the Group.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 24 May
  2005, the Board allocated &pound;4.5 billion to the share purchase programme
  for the year to 31 March 2006, which was subsequently increased to &pound;6.5
  billion. For the period from 1 April 2005 to 31 March 2006, the Company purchased
  4,848 million shares at a cost of &pound;6.5 billion. The average share price
  paid, excluding transaction costs, was 133.37 pence, compared with the average
  volume weighted price over the same period but excluding the period when shares
  could not be purchased, due to the announcement of the discussions which led
  to the disposal of Vodafone Japan, of 133.87 pence. No shares have been purchased
  since 31 March 2006. In addition to ordinary market purchases, the Company placed
  irrevocable purchase instructions prior to the start of some of the close periods
  and in advance of quarterly KPI announcements.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At its AGM
  on 26 July 2005, the Company received shareholder approval to purchase up to
  6.4 billion shares of the Company. This approval will expire at the conclusion
  of the Company&#146;s AGM on 25 July 2006. Shares can be purchased on market
  on the London Stock Exchange at a price not exceeding 105% of the average middle
  market quotation for such shares on the five business days prior to the date
  of purchase and otherwise in accordance with the rules of the Financial Services
  Authority. Purchases are only made if accretive to adjusted earnings per share.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As a result
  of targeting a lower credit rating and the &pound;9 billion special distribution,
  the Group has no current plans for further share purchases or other one off
  shareholder returns.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details
  of shares purchased under the programme are shown below:</font> </p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">number
        of</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares
        </font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;Average</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">purchased</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">price&nbsp;</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">under</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Maximum</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">paid
        per<b> </b></font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">publicly</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value
        of</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total&nbsp;</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">share,</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">announced</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">number
        of</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">inclusive
        of</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">share</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">purchased</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">transaction</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">purchase</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">under
        the</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    </tr>
    <tr align="right" valign="bottom">
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">purchased</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">costs</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size=1>programme</font></font></td>
      <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size=1><sup>(1)</sup></font></font><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size=1>programme</font></font></td>
      <td align="left"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size=1><sup>(2)</sup></font></font><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right" valign="bottom">
      <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Date
        of share purchase</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#146;000</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
      <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#145;000</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td> <hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 30 April 2005</font></td>
      <td width="14%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">321,000</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="14%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139.33</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="14%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">321,000</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="14%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,053</font></td>
      <td width="3%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 23 May 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">84,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139.00</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">405,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,935</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24
        &#150; 31 May 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139.49</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">515,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,782</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 30 June 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">508,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136.80</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,024,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,086</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 10 July 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">145,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137.23</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,169,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,887</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11
        &#150; 27 July 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">225,700</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144.32</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,395,200</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,561</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28
        &#150; 31 July 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,395,200</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,561</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 31 August 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">297,900</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">150.57</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,693,100</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,112</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 30 September 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">273,900</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">151.21</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,967,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,698</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 31 October 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">368,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146.76</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,335,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,158</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 14 November 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">150.83</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,406,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,050</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
        &#150; 30 November 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">564,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">128.23</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,970,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,327</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 31 December 2005</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">362,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126.49</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,333,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,868</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 9 January 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">165,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129.63</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,498,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,654</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10
        &#150; 24 January 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">504,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124.99</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,002,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,024</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25
        &#150; 31 January 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76,500</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121.17</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,079,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">931</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 28 February 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">411,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119.84</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,490,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">439</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        &#150; 31 March 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">358,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122.42</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,848,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,848,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">134.07</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,848,000</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
      <td valign="top" width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">No shares were purchased outside the publicly announced share purchase programmes.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 24 May 2005, the Company announced it was allocating &pound;4.5 billion to the share purchase programme to cover the year to 31 March 2006, including those
shares purchased between 1 April 2005 and 23 May 2005 under irrevocable purchase instructions. This superseded the &pound;4 billion programme announced in November 2004. On 15 November 2005, the Company announced that it was increasing the
allocation to &pound;6.5 billion completing by March 2006.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p41"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">

<p> <b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Treasury
  shares</font></b> <font size="2"><br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Companies
  Act 1985 permits companies to purchase their own shares out of distributable
  reserves and to hold shares with a nominal value not to exceed 10% of the nominal
  value of their issued share capital in treasury. If shares in excess of this
  limit are purchased they must be cancelled. Whilst held in treasury, no voting
  rights or preemption rights accrue and no dividends are paid in respect of treasury
  shares. Treasury shares may be sold for cash, transferred (in certain circumstances)
  for the purposes of an employee share scheme, or cancelled. If treasury shares
  are sold, such sales are deemed to be a new issue of shares and will accordingly
  count towards the 5% of share capital which the Company is permitted to issue
  on a non pre-emptive basis in any one year as approved by its shareholders at
  the AGM. The proceeds of any sale of treasury shares up to the amount of the
  original purchase price, calculated on a weighted average price method, is attributed
  to distributable profits which would not occur in the case of the sale of non-treasury
  shares. Any excess above the original purchase price must be transferred to
  the share premium account.</font></font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares purchased are held in treasury in accordance with section 162 of the Companies Act 1985. The movement in treasury shares during the financial year is shown below:</font>
</p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">million</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
        April 2005</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,814</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,121</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Repurchase
        of shares</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,848</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,500</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancellation
        of shares</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,250</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,053</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Re-issue
        of shares</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(279</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(370</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
        March 2006</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,133</font></td>
      <td><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,198</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
  Italy share purchase</font></b> <font size="2"><br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 19 April
  2005, the board of directors of Vodafone Italy approved a proposal to buy back
  issued and outstanding shares for approximately </font></font><font size=2
face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.9
  billion (&pound;5.4 billion), which was subsequently approved by the shareholders
  of Vodafone Italy. The buy back took place in two tranches, the first on 24
  June 2005 and the second on 7 November 2005. As a result, Vodafone received
  </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.1 billion (&pound;4.2 billion)
  and Verizon Communications received </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.8 billion (&pound;1.2 billion).
  After the transaction, Vodafone and Verizon Communications shareholdings in
  Vodafone Italy remained at approximately 77% and 23%, respectively. At 31 March
  2006, Vodafone Italy had net cash on deposit with Group companies of </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.3
  billion (&pound;1.6 billion).</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Funding</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  consolidated net debt position for continuing operations is as follows:</font>
</p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
        and cash equivalents (as presented in the</font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">consolidated
        cash flow statement)</font></font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,932</font></b></font></td>
      <td width="2%" bgcolor="#cccccc">&nbsp;</td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,726</font></td>
      <td width="2%">&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
        overdrafts</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
        and cash equivalents for discontinued operations</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(161</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
        and cash equivalents (as presented in</font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
        consolidated balance sheet)</font></font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,789</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,769</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
        and other receivables</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">310</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">408</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
        and other payables</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(219</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(79</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term
        borrowings</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,448</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,003</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term
        borrowings</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16,750</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13,190</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20,107</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14,864</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        debt as extracted from the consolidated balance sheet</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,318</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11,095</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        debt related to discontinued operations</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">920</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        debt related to continuing operations</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,318</font></b></font></td>
      <td bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10,175</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
  </table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables and payables include certain derivative financial
      instruments (see notes 17 and 27).</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net debt
  increased to &pound;17,318 million, from &pound;10,175 million at 31 March 2005,
  principally as a result of the cash flow items noted above, share purchases,
  equity dividend payments and &pound;34 million of foreign exchange movements.
  This represented approximately 24% of the Group&#146;s market capitalisation
  at 31 March 2006 compared with 11% at 31 March 2005. Average net debt at month
  end accounting dates over the 12 month period ended 31 March 2006 was &pound;13,391
  million, and ranged between &pound;9,551 million and &pound;17,318 million during
  the year.</font> </p>
</div>
<div style="float: right; width: 48%">

<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consistent
  with development of its strategy, the Group is now targeting low single A long
  term credit ratings from Moody&#146;s, Fitch Ratings and Standard &amp; Poor&#146;s
  having previously managed the capital structure at single A credit ratings.
  Credit ratings are not a recommendation to purchase, hold or sell securities,
  in as much as ratings do not comment on market price or suitability for a particular
  investor, and are subject to revision or withdrawal at any time by the assigning
  rating organisation. Each rating should be evaluated independently.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  credit ratings enable it to have access to a wide range of debt finance, including
  commercial paper, bonds and committed bank facilities.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Commercial
  paper programmes</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  currently has US and euro commercial paper programmes of $15 billion and &pound;5
  billion, respectively, which are available to be used to meet short term liquidity
  requirements and which were undrawn at 31 March 2005. At 31 March 2006, $696
  million (&pound;400 million) was drawn under the US commercial paper programme
  and $80 million (&pound;46 million) and &pound;285 million were drawn under
  the euro commercial paper programme. The commercial paper facilities are supported
  by $10.9 billion (&pound;6.3 billion) of committed bank facilities, comprised
  of a $5.9 billion Revolving Credit Facility that matures on 24 June 2009 and
  a $5.0 billion Revolving Credit Facility that matures on 22 June
  2012. At 31 March 2006 and 31 March 2005, no amounts had been drawn under either
  bank facility.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Bonds</font></b>
  </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  has a </font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
  billion Euro Medium Term Note programme, a $12 billion US shelf programme and
  a &yen;600 billion Japanese shelf programme, which are used to meet medium to
  long term funding requirements. At 31 March 2006, the total amounts in issue
  under these programmes split by currency were $13.4 billion, &pound;1.5 billion, &euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.7
  billion and &yen;3 billion. In addition, the Group&#146;s discontinued operation
  in Japan had bonds in issue of &yen;125 billion, which were transferred to SoftBank
  following completion of the sale of Vodafone Japan.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the year
  to 31 March 2006, bonds with a nominal value &pound;5.2 billion were issued
  under the US Shelf and the Euro Medium Term Note programme. The bonds issued
  during the year were:</font> </p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf / Euro</font></font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Medium
        Term</font></font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note
        (&#147;EMTN&#148;)</font></font></td>
    </tr>
    <tr>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Date
        of bond issue</font></font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Maturity
        of bond</font></font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Currency</font></font></td>
      <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
        Million</font></font></td>
      <td align="center"><font size="1">&nbsp;</font></td>
      <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">programme</font></font></td>
    </tr>
    <tr>
      <td> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td> <hr noshade size=1></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8
        August 2005</font></td>
      <td width="30%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
        September 2015</font></td>
      <td width="10%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td width="2%">&nbsp;</td>
      <td width="15%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8
        September 2005</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8
        September 2014</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GBP</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">350</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">EMTN</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29
        November 2005</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29
        November 2012</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">EUR</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">EMTN</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29
        December 2005</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29
        June 2007</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,850</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29
        December 2005</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28
        December 2007</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8
        February 2006</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17
        July 2008</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">EUR</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,250</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">EMTN</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16
        March 2006</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28
        December 2007</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16
        March 2006</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
        June 2011</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">350</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16
        March 2006</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
        June 2011</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16
        March 2006</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15
        March 2016</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USD</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">750</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
        Shelf</font></td>
    </tr>
    <tr>
      <td colspan=6><hr noshade size=1></td>
    </tr>
  </table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Group had bonds in issue with a nominal value of &pound;15,389 million,
  including $207 million of bonds that were assumed as part of the acquisition
  of MobiFon S.A. and Oscar Mobil a.s. on 31 May 2005, plus a further &yen;125
  billion bonds in the Group&#146;s discontinued operations in Japan.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td bgcolor="#FFFFFF"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
        7 June 2006, the Company agreed to issue &euro;1 billion of bonds due
        on 13 January 2012 and &euro;300 million of bonds due on 14 June 2016
        under the Euro Medium Term Note programme. The bonds were  issued
        on 14 June 2006.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">41</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p42"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>

<div style="float: left; width: 48%">

<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial
  Position and Resources </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  continued</font> </p>
<p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Committed
  facilities</font></b> <font size="2"><br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following table
  summarises the committed bank facilities available to the Group at 31 March
  2006:</font></font> </p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committed
        Bank Facilities</font></font></td>
      <td>&nbsp;</td>
      <td><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
        drawn</font></font></td>
    </tr>
    <tr>
      <td> <hr noshade size=1></td>
      <td>&nbsp;</td>
      <td><hr noshade size=1></td>
    </tr>
    <tr>
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24
        June 2004</font></b></font></td>
      <td width="2%">&nbsp;</td>
      <td width="48%">&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$5.9
        billion Revolving Credit Facility, </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">maturing
        24 June 2009.</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">No
        drawings have been made against </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">this
        facility. The facility supports the </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group&#146;s
        commercial paper </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">programmes
        and may be used for </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">general
        corporate purposes including </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acquisitions.</font></td>
    </tr>
    <tr valign="top">
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24
        June 2005</font></b></font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$5.0
        billion Revolving Credit Facility, </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">maturing
        22 June 2012.</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">No
        drawings have been made against </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">this
        facility. The facility supports the </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group&#146;s
        commercial paper </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">programmes
        and may be used for </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">general
        corporate purposes including </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acquisitions.</font></td>
    </tr>
    <tr valign="top">
      <td><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21
        December 2005</font></b></font></td>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="top">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&yen;259
        billion Term Credit Facility, </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">maturing
        16 March 2011, entered into by </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
        Finance K.K. and guaranteed </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">by
        the Company.</font></td>
      <td>&nbsp;</td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        facility was drawn down in full on </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21
        December 2005. The facility is </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">available
        for general corporate </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">purposes,
        although amounts drawn </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">must
        be on-lent to the Company.</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
      <td><hr noshade size=1></td>
    </tr>
  </table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under the
  terms and conditions of the $10.9 billion committed bank facilities, lenders
  have the right, but not the obligation, to cancel their commitments and have
  outstanding advances repaid no sooner than 30 days after notification of a change
  of control of the Company. The facility agreements provide for certain structural
  changes that do not affect the obligations of the Company to be specifically
  excluded from the definition of a change of control. This is in addition to
  the rights of lenders to cancel their commitment if the Company has committed
  an event of default.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Substantially
  the same terms and conditions apply in the case of Vodafone Finance K.K.&#146;s
  &yen;259 billion term credit facility, although the change of control provision
  is applicable to any guarantor of borrowings under the term credit facility.
  As of 31 March 2006, the Company was the sole guarantor.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition,
  Vodafone Japan has a fully drawn bilateral facility totalling &yen;8 billion
  (&pound;39 million) which expires in January 2007 and which was included in
  the sale of Vodafone Japan.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Furthermore,
  three of the Group&#146;s subsidiary undertakings are funded by external facilities
  which are non-recourse to any member of the Group other than the borrower, due
  to the level of country risk involved. These facilities may only be used to
  fund their operations. Vodafone Egypt has a partly drawn (EGP250 million (&pound;25
  million)) syndicated bank facility of EGP900 million (&pound;90 million) that
  fully expires in September 2007. On 1 April 2006 the undrawn EGP 650 million
  (&pound;65 million) element of the facility lapsed. Vodafone Albania has a fully
  drawn (</font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60 million (&pound;42 million))
  syndicated bank facility that expires at various dates up to and including October
  2012. Vodafone Romania has a fully drawn &euro;</font><font size="2">&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">200
  million syndicated bank facility that expires at various dates up to October
  2010.</font></font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In aggregate,
  the Group has committed facilities of approximately &pound;7,833 million, of
  which &pound;6,362 million was undrawn and &pound;1,471 million was drawn at
  31 March 2006.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  believes that it has sufficient funding for its expected working capital requirements.
  Further details regarding the maturity, currency and interest rates of the Group&#146;s
  gross borrowings at 31 March 2006 are included in note 24 to the Consolidated
  Financial Statements.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  assets and liabilities</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analyses of
  financial assets and liabilities, including the maturity profile of debt, currency
  and interest rate structure, are included in notes 18 and 24 to the Consolidated
  Financial Statements. Details of the Group&#146;s treasury management and policies
  are included within note 24 to the Consolidated Financial Statements.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Option
  agreements and similar arrangements</font> <br>
  <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Potential
  cash inflows</font></b> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As part of
  the agreements entered into upon the formation of Verizon Wireless, the Company
  entered into an Investment Agreement with Verizon Communications, formerly Bell
  Atlantic Corporation, and Verizon Wireless. Under this agreement, dated 3 April 2000, the Company has the right to require Verizon Communications or Verizon Wireless to acquire interests in the Verizon Wireless partnership from the Company with an
aggregate market value of up to $20 billion during certain periods up to August 2007, dependent on the value of the Company&#146;s 45% stake in Verizon Wireless. This represents a potential source of liquidity to the Group.</font>
</p>
</div>
<div style="float: right; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercise of the option could have occurred in either one or both of two phases. The Phase I option expired in August 2004 without being exercised. The Phase II option may be exercised
during the periods commencing 30 days before and ending 30 days after any one or more of 10 July 2006 and 10 July 2007. The Phase II option also limits the aggregate amount paid to $20 billion and caps the payments under single exercises to $10
billion. Determination of the market value of the Company&#146;s interests will be by mutual agreement of the parties to the transaction or, if no such agreement is reached within 30 days of the valuation date, by appraisal. If an initial public
offering takes place and the common stock trades in a regular and active market, the market value of the Company&#146;s interest will be determined by reference to the trading price of common stock.</font>
</p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Potential
  cash outflows</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect
  of the Group&#146;s interest in the Verizon Wireless partnership, an option
  granted to Price Communications, Inc. by Verizon Communications is exercisable
  at any time up to and including 15 August 2006. The option gives Price Communications,
  Inc. the right to exchange its preferred limited partnership interest in Verizon
  Wireless of the East LP for either equity of Verizon Wireless (if an initial
  public offering of such equity occurs), or common stock of Verizon Communications.
  If the exercise occurs, Verizon Communications has the right, but not the obligation,
  to contribute the preferred interest to the Verizon Wireless partnership, diluting
  the Group&#146;s interest. However, the Group also has the right to contribute
  further capital to the Verizon Wireless partnership in order to maintain its
  percentage partnership interest at the level just prior to the exercise of the
  option. Such amount is expected to be $1.0 billion.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the 2005 financial year, the Group sold 16.9% of Vodafone Egypt to Telecom Egypt, reducing the Group&#146;s effective interest to 50.1%. Both parties also signed a shareholder
agreement setting out the basis under which the Group and Telecom Egypt would each contribute a 25.5% interest in Vodafone Egypt to a newly formed company to be 50% owned by each party. Within this shareholder agreement, Telecom Egypt was granted a
put option over its entire interest in Vodafone Egypt giving Telecom Egypt the right to put its shares back to the Group at fair market value. On 31 October 2005, the shareholder agreement between Telecom Egypt and Vodafone expired and the
associated rights and obligations contained in the shareholder agreement terminated, including the aforementioned put option. However, the original shareholders agreement contained an obligation on both parties to use reasonable efforts to
renegotiate a revised shareholder agreement for their direct shareholding in Vodafone Egypt on substantially the same terms as the original agreement, which may or may not lead to a new agreement containing a put option under the terms described
above. As of 31 March 2006, the parties have not agreed to abandon such efforts and as such, the financial liability relating to the initial shareholder agreement has been retained in the Group&#146;s balance sheet at 31 March 2006.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect of Arcor, the Group&#146;s non-mobile operation in Germany, the capital structure provides all partners, including the Group, the right to withdraw capital from 31 December 2026 onwards and this right in relation to the minority partners has been recognised as a financial liability.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Off-balance
  sheet arrangements</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  does not have any material off-balance sheet arrangements, as defined by the
  SEC. Please refer to notes 30 and 31 to the Consolidated Financial Statements
  for a discussion of the Group&#146;s commitments and contingent liabilities.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Quantitative
  and qualitative disclosures about market risk</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A discussion
  of the Group&#146;s financial risk management objectives and policies and the
  exposure of the Group to liquidity, market and credit risk is included within
  note 24 to the Consolidated Financial Statements.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p43"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Risk Factors, Trends and Outlook</font></b>
</p>
<p>&nbsp; </p>
<div style="float: left; width: 48%">

<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk
  Factors</font> <br>
  <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Regulatory
  decisions and changes in the regulatory environment could adversely affect the
  Group&#146;s business.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Because the
  Group has ventures in a large number of geographic areas, it must comply with
  an extensive range of requirements that regulate and supervise the licensing,
  construction and operation of its telecommunications networks and services.
  In particular, there are agencies which regulate and supervise the allocation
  of frequency spectrum and which monitor and enforce regulation and competition
  laws which apply to the mobile telecommunications industry. Decisions by regulators
  regarding the granting, amendment or renewal of licences, to the Group or to
  third parties, could adversely affect the Group&#146;s future operations in
  these geographic areas. The Group cannot provide any assurances that governments
  in the countries in which it operates will not issue telecommunications licences
  to new operators whose services will compete with it. In addition, other changes
  in the regulatory environment concerning the use of mobile phones may lead to
  a reduction in the usage of mobile phones or otherwise adversely affect the
  Group. Additionally, decisions by regulators and new legislation could affect
  the pricing for, or adversely affect the revenue from, the services the Group
  offers. Further details on the regulatory framework in certain countries and
  regions in which the Group operates, and on regulatory proceedings can be found
  in &#147;Regulation&#148; on pages 21 to 24.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Increased
  competition may reduce market share or revenue.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  faces intensifying competition. Competition could lead to a reduction in the
  rate at which the Group adds new customers and to a decrease in the size of
  the Group&#146;s market share as customers choose to receive telecommunications
  services, or other competing services, from other providers. Examples include,
  but are not limited to, competition from internet-based services and MVNOs.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The focus of competition in many of the Group&#146;s markets continues to shift from customer acquisition to customer retention as the market for mobile telecommunications has become
increasingly penetrated. Customer deactivations are measured by the Group&#146;s churn rate. There can be no assurance that the Group will not experience increases in churn rates, particularly as competition intensifies. An increase in churn rates
could adversely affect profitability because the Group would experience lower revenue and additional selling costs to replace customers, although such costs would have a future revenue stream to mitigate the impact.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Increased competition has also led to declines in the prices the Group charges for its mobile services and is expected to lead to further price declines in the future. Competition
could also lead to an increase in the level at which the Group must provide subsidies for handsets. Additionally, the Group could face increased competition should there be an award of additional licences in jurisdictions in which a member of the
Group already has a licence.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Delays
  in the development of handsets and network compatibility and components may
  hinder the deployment of new technologies.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  operations depend in part upon the successful deployment of continuously evolving
  mobile telecommunications technologies. The Group uses technologies from a number
  of vendors and makes significant capital expenditures in connection with the
  deployment of such technologies. There can be no assurance that common standards
  and specifications will be achieved, that there will be inter-operability across
  Group and other networks, that technologies will be developed according to anticipated
  schedules, that they will perform according to expectations or that they will
  achieve commercial acceptance. The introduction of software and other network
  components may also be delayed. The failure of vendor performance or technology
  performance to meet the Group&#146;s expectations or the failure of a technology
  to achieve commercial acceptance could result in additional capital expenditures
  by the Group or a reduction in profitability.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
  benefits from integration may not be realised.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The One Vodafone
  programme represents the Group&#146;s principal plan to achieve integration
  across the Group&#146;s operating companies, particularly in Europe, and is
  designed to maximise the benefits of Vodafone&#146;s scale and scope. The programme
  is premised on six core initiatives, further details of which can be found on
  pages 18 to 19. The Group has previously stated publicly that it expects to
  realise operational revenue benefits by the year ending 31 March 2008. These
  expected benefits have been formulated by management on the assumption that
  all of the core initiatives which comprise the One Vodafone programme generate
  the results anticipated and that the Group is able to take advantage of its
  size and exploit the associated economies of scale to their fullest extent.
  Management considers these targeted revenue enhancements set out on pages 18
  to 19 to be achievable, although no assurance can be given that the full extent
  of the anticipated benefits of the One Vodafone programme will be realised.
  In addition, the ability to deliver tangible business benefits from the convergence
  of the Group&#146;s IT systems could be compromised by the technical complexity
  of such a process or other difficulties associated with converging multiple
  systems architectures.</font> </p>
</div>
<div style="float: right; width: 48%">

<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes
  in assumptions underlying the carrying value of certain Group assets could result
  in impairment.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone completes
  a review of the carrying value of its assets annually, or more frequently where
  the circumstances require, to assess whether those carrying values can be supported
  by the future cash flows derived from such assets. This review examines the
  continued appropriateness of the assumptions in respect of highly uncertain
  matters upon which the carrying values of certain of the Group&#146;s assets
  are based. This includes an assessment of discount rates and long term growth
  rates, future technological developments and timing and quantum of future capital
  expenditure, as well as several factors which may affect revenues and profitability
  identified within other Risk Factors in this section such as intensifying competition,
  pricing pressures, regulatory changes and the timing for introducing new products
  or services. Due to the Group&#146;s substantial carrying value of goodwill
  under IFRS and licences under US GAAP, the revision of any of these assumptions
  to reflect current or anticipated changes in operations or the financial condition
  of the Group could lead to an impairment in the carrying value of certain assets
  in the Group. Whilst impairment does not impact reported cash flows, it does
  result in a non-cash charge on the income statement, and thus no assurance can
  be given that any future impairments would not affect the Company&#146;s reported
  distributable reserves and therefore its ability to make distributions to its
  shareholders or repurchase its shares. See &#147;Critical Accounting Estimates
  &#150;Impairment Reviews&#148; on page 26.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  business would be adversely affected by the non-supply of equipment and support
  services by a major supplier.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Companies
  within the Group source their mobile network infrastructure and related support
  services from third party suppliers. The removal from the market of one or more
  of these third party suppliers would adversely affect the Group&#146;s operations
  and could result in additional capital expenditures by the Group.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  strategic objectives may be impeded by the fact that it does not have a controlling
  interest in some of its ventures.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Some of the
  Group&#146;s interests in mobile licences are held through entities in which
  it is a significant but not controlling owner. Under the governing documents
  for some of these partnerships and corporations, certain key matters such as
  the approval of business plans and decisions as to the timing and amount of
  cash distributions require the consent of the partners. In others, these matters
  may be approved without the Company&#146;s consent. The Company may enter into
  similar arrangements as it participates in ventures formed to pursue additional
  opportunities. Although the Group has not been materially constrained by the
  nature of its mobile ownership interests, no assurance can be given that its
  partners will not exercise their power of veto or their controlling influence
  in any of the Group&#146;s ventures in a way that will hinder the Group&#146;s
  corporate objectives and reduce any anticipated cost savings or revenue enhancement
  resulting from these ventures.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
  benefits from investment in networks, licences and new technology may not be
  realised.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  has made substantial investments in the acquisition of licences and in its mobile
  networks, including the roll out of 3G networks. The Group expects to continue
  to make significant investments in its mobile networks due to increased usage
  and the need to offer new services and greater functionality afforded by new
  or evolving telecommunications technologies. Accordingly, the rate of the Group&#146;s
  capital expenditures in future years could remain high or exceed that which
  it has experienced to date.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Please see &#147;Business Overview &#150; Licences and network infrastructure&#148; on pages 14 to 15 for more information on expected expenditure in connection with the roll out of
3G services. There can be no assurance that the introduction of new services will proceed according to anticipated schedules or that the level of demand for new services will justify the cost of setting up and providing new services. Failure or a
delay in the completion of networks and the launch of new services, or increases in the associated costs, could have a material adverse effect on the Group&#146;s operations.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  may experience a decline in revenue or profitability notwithstanding its efforts
  to increase revenue from the introduction of new services.</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As part of
  its strategy to increase usage of its networks, the Group will continue to offer
  new services to its existing customers and seek to increase non-voice service
  revenue as a percentage of total service revenue. However, the Group may not
  be able to introduce commercially these new services, or may experience significant
  delays due to problems such as the availability of new mobile handsets or higher
  than anticipated prices of new handsets. In addition, even if these services
  are introduced in accordance with expected time schedules, there is no assurance
  that revenue from such services will increase ARPU or maintain profit margins.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p44"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Risk
Factors, Trends and Outlook<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>
<div style="float: left; width: 48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s business and its ability to retain customers and attract new customers may be impaired by actual or perceived health risks associated with the transmission of radiowaves
from mobile telephones, transmitters and associated equipment.</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Concerns
have been expressed in some countries where the Group operates that the electromagnetic
signals emitted by mobile telephone handsets and base stations may pose health
risks at exposure levels below existing guideline levels and may interfere with
the operation of electronic equipment. In addition, as described under the heading &#147;Legal Proceedings&#148; in note 31 to the Consolidated Financial Statements, several
mobile industry participants, including the Company and Verizon Wireless, have had lawsuits filed against them alleging various health consequences as a result of mobile phone usage, including brain cancer. While the Company is not aware that such
health risks have been substantiated, there can be no assurance that the actual, or perceived, risks associated with radiowave transmission will not impair its ability to retain customers and attract new customers, reduce mobile telecommunications
usage or result in further litigation. In such event, because of the Group&#146;s
strategic focus on mobile telecommunications, its business and results of operations
may be more adversely affected than those of other companies in the telecommunications
sector.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trend Information</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The growth in the mobile telecommunications industry in terms of customers, revenue and cash flows has been substantial over the past decade. Vodafone believes that the mobile
industry will continue to experience growth, although as the markets in which the Group operates mature, the rate of growth will depend on the demand for enhanced voice and data products and services and the amount of voice and data traffic moving
from fixed networks to mobile networks. The most significant current trends which are expected to impact the Group are:</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Increasing penetration rates and competition between network operators for customers</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For
the Group&#146;s operations which operate in less penetrated markets, the Group expects customer growth to be the principal source of revenue growth. Gaining new customers depends
on many factors, including network coverage and quality, customer satisfaction, product offerings and handset range but a key factor is often the pricing of handsets and tariffs. In general, as penetration rates rise in a market, competition
intensifies as operators invest more in retaining their existing customers whilst offering incentives to potential new customers. These competitive pressures, along with new mobile users who generally spend less than existing users, exert a downward
pressure on ARPU and result in increased acquisition and retention costs. The Group anticipates that this trend will continue, though it will endeavour to offset the impact by usage stimulation campaigns, new product offerings and leveraging the
Group&#146;s scale and scope.</font></p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In markets with high penetration rates, the Group expects usage stimulation and new products and services to be the main drivers of revenue growth. Building on the success of recent
campaigns in many of the Group&#146;s markets, bundled offerings are expected to expand to provide better value to customers and encourage increased use of the Group&#146;s services. Such stimulation initiatives are expected to increase ARPU in the
medium and longer term as higher usage more than offsets the reduced average revenue per minute or per message. The Group also expects that technology innovation will lead to the improved integration of PC&#146;s and laptops with mobile services and
provide opportunities for the Group to expand its product offering, resulting in a larger market for its services.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A number of national regulators are considering allocating additional spectrum or offering new licences for the provision of mobile telecommunications services. If the additional
spectrum or new licences are acquired by new or existing competitors, the competitive pressures in the local market may increase.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact of new competitors<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New service providers, or MVNOs, in a number of markets in which the Group operates are increasing the competitive pressures in certain market segments with low cost offerings.
Certain national regulators require, or have stated their intention to require, network operators to provide network access to such service providers. The Group expects that in markets in which new service providers have a significant competitive
impact, ARPU is likely to reduce and this competition may result in the need for the Group to invest further amounts in customer retention.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Downward pressure on termination rates from regulatory action<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
recent years, action by NRA&#146;s has led to reductions in the income the Group
receives for terminating calls from fixed or other mobile networks and, similarly,
reductions in the cost charged by other operators for connecting a call on their
fixed or mobile network. Vodafone expects such regulatory pressure to persist
for the foreseeable future.</font></p></div>
<div style="float: right; width: 48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Development of and demand for data services<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Since
the Group&#146;s introduction of data service offerings, revenue from these services
has increased each year, although there can be no assurance that this will continue
to be the case. With continued growth in the use of data services as more customers
utilise 3G services, including video calling and full track music downloads,
the Vodafone Mobile Connect data card, new business focused offerings and the
recent launch of
3G broadband, the Group expects continued growth in non-messaging data service
revenue and for this revenue to increase as a percentage of total service revenue
over time.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits of regional scale and scope</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As
the world&#146;s leading international mobile telecommunications company, the
Group is able to benefit from its regional scale and scope. The One Vodafone
initiatives (see pages 18 to 19) are targeted at maximising the future value
of these benefits.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact of convergence and disruptive technologies<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
emergence of new technologies, which enable core and radio access networks to
be increasingly based on internet protocols, is likely to provide the Group with
opportunities to
reduce costs and target the replacement of customers&#146; fixed line phone services.
However, they will also provide opportunities for new competitors to enter the
telecommunications services market. Vodafone believes it is well placed to take
advantage of these opportunities, as demonstrated by the launch of Vodafone Zuhause
in Germany.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation expense<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
expense is driven largely by capital expenditure on building and upgrading the
Group&#146;s networks. Capital expenditure on network equipment has increased
in recent years with the construction of 3G networks. As network equipment generally
has an expected useful life of between three and ten years, the resulting depreciation
expense in the medium term is likely to be higher than in the current financial
year.
The One Vodafone initiatives are expected to reduce capital expenditure, and
hence depreciation, relative to revenue in the longer term.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Seasonality</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s
  financial results and cash flows have not, historically, been subject to significant
  seasonal trends between the first and second half of the financial year, although
  there are a number of offsetting trends.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Traditionally, the Christmas period sees a higher volume of customer connections, contributing to higher equipment and connection revenue in the second half of the financial year.
Ongoing airtime revenue also demonstrates signs of seasonality, with revenue generally lower during February, which is a shorter than average month, and revenue from roaming charges higher during the summer months as a result of increased travel by
customers.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There is no assurance
that these trends will continue in the future. For additional considerations
related to these trends, please see &#147;Risk Factors&#148; in this section.</font>
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"></font></p>
</div>
<br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

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<a name="p45"></a>
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<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Outlook</font></p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2007 financial year<br>
  </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">While we
      are delivering on cost reduction, revenue stimulation and emerging market growth
      in the shorter term, the potential benefits from serving our customers
    total telecommunications needs will materialise over a longer timeframe.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the
  year ahead, we expect operating conditions to remain challenging, with a continued
  intense competitive environment and further regulatory pressure,
  but nevertheless see continued growth in Group revenue.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We are
    anticipating higher customer investment, pricing pressures and further termination
    rate
      reductions to impact growth in adjusted operating profit;
    however, initiatives to deliver further cost efficiencies are expected to
    mitigate this
    effect.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
    capitalised fixed asset additions are expected to be in the range of &pound;4.2
      billion to &pound;4.6 billion, which is higher than the 2006 financial
      year due to the effect of recently completed acquisitions and disposals
      and the
      Group&#8217;s
      rollout of HSDPA.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free cash
    flow is expected to be in the range of &pound;4.0
        billion to &pound;4.5
        billion after an estimated </font></p>
<p>&nbsp;</p>
</div>
<div style="float: right; width: 48%">
<p>&nbsp;</p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.2
      billion of tax payments, including associated interest, in respect of the
      potential unfavourable
      resolution of a number of long standing tax issues. The Group currently
      forecasts a further significant increase in cash tax and associated interest
      payments
      in the 2008 financial year, including a potentially material amount related
      to the CFC litigation which could be paid should the litigation be resolved
      unfavourably in that year. Further information on the CFC litigation is
      provided in note 31 in the Consolidated
  Financial Statements.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
    has previously indicated that in the three year period ending 31 March 2009,
    it expects a number of long standing tax issues
      to be resolved. The Group
  estimates that tax payments of approximately &pound;5 billion could be made
  over that period, together with associated interest costs, including a potentially
  material amount relating to CFC litigation.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The section
    entitled &#8220;Business
    Overview &#8211; Global Services &#8211; One
    Vodafone&#8221; on pages 18 to 19 provides additional outlook statements in
    relation to the expected future benefits of One Vodafone initiatives on cash
    flow, capital
    expenditure and operating expenditure.<br>
</font></p>
<p>&nbsp;</p>
</div>
<br clear="all">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p46"></a>
<p><a href="#contents2"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cautionary Statement Regarding Forward-Looking Statements</font></b>
</p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This document
    contains &#147;forward-looking statements&#148; within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group&#146;s financial
  condition, results of operations and businesses and certain of the Group&#146;s plans and objectives. In particular, such forward-looking statements include statements with respect to Vodafone&#146;s expectations as to launch and roll out dates for
  products, services or technologies offered by Vodafone; intentions regarding the development of products and services introduced by Vodafone or by Vodafone in conjunction with initiatives with third parties; the ability to integrate all operations
  throughout the Group in the same format and on the same technical platform and the ability to be operationally efficient; the development and impact of new mobile technology; anticipated benefits to the Group of the One Vodafone programme; the
  results of Vodafone&#146;s brand awareness and brand preference campaigns; growth in customers and usage, including improvements in customer mix; future performance, including turnover, average revenue per user (&#147;ARPU&#148;), cash flows, costs,
  capital expenditures and margins, non-voice services and their revenue contribution; share purchases; the rate of dividend growth by the Group or its existing investments; expectations regarding the Group&#146;s access to adequate funding for its
  working capital requirements; expected effective tax rates and expected tax payments; the ability to realise synergies through cost savings, revenue generating services, benchmarking and operational experience; future acquisitions, including
  increases in ownership in existing investments and pending offers for investments; future disposals; contractual obligations; mobile penetration and coverage rates; the impact of regulatory and legal proceedings involving Vodafone; expectations with
  respect to long-term shareholder value growth; Vodafone&#146;s ability to be
  the mobile market leader, overall market trends and other trend projections.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Forward-looking statements
are sometimes, but not always, identified by their use of a date in the future
or such words as &#147;anticipates&#148;, &#147;aims&#148;,
&#147;could&#148;, &#147;may&#148;, &#147;should&#148;, &#147;expects&#148;, &#147;believes&#148;, &#147;intends&#148;, &#147;plans&#148; or &#147;targets&#148;.
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:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">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;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">greater than anticipated competitive activity, from both existing competitors and new market entrants, including MVNOs, which could require changes to the
Group&#146;s pricing models, lead to customer churn and make it more difficult to acquire new customers and reduce profitability;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the impact of investment in network capacity and the deployment of new technologies, or the rapid obsolescence of existing technology;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">slower than expected customer growth and reduced customer retention;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">changes in spending patterns of existing customers;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the possibility that new products and services, including mobile internet platforms, 3G, Vodafone live!, Vodafone Radio DJ and other products and services, will
not be commercially accepted or perform according to expectations or that vendors&#146; performance in marketing these technologies will not meet the Group&#146;s requirements;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the Group&#146;s ability to win 3G licence allocations;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the Group&#146;s ability to realise expected synergies and benefits associated with 3G technologies;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a lower than expected impact of GPRS, 3G, Vodafone live!, Vodafone Radio DJ and other new or existing products, services or technologies on the Group&#146;s future
revenue, cost structure and capital expenditure outlays;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the ability of the Group to harmonise mobile platforms and delays, impediments or other problems associated with the roll out and scope of 3G technology, Vodafone
live!, Vodafone Radio DJ and other new or existing products, services or technologies in new markets;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the ability of the Group to offer new services and secure the timely delivery of high quality, reliable GPRS and 3G handsets, network equipment and other key
products from suppliers;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the Group&#146;s ability to develop competitive data content and services that will attract new customers and increase average usage;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">future revenue contributions of both voice and non-voice services;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">greater than anticipated prices of new mobile handsets;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">changes in the costs to the Group of or the rates the Group may charge for terminations and roaming minutes;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the Group&#146;s ability to achieve meaningful cost savings and revenue improvements as a result of its One Vodafone initiative;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the ability to realise benefits from entering into partnerships for developing data</font></td>
</tr>
</table></div>
<div style="float: right; width: 48%">


<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td valign="top"><font size="2">&nbsp;</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and
    internet services and entering into service franchising and brand licensing;</font> </td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the possibility that the pursuit of new, unexpected strategic opportunities may have a negative impact on the Group&#146;s financial performance;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">developments in the Group&#146;s financial condition, earnings and distributable funds and other factors that the Board takes into account in determining the level
of dividends;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">any unfavourable conditions, regulatory or otherwise, imposed in connection with pending or future acquisitions or disposals and the integration of acquired
companies in the Group&#146;s existing obligations;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">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 other negative implications;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">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;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the impact of legal or other proceedings against the Group or other companies in the mobile telecommunications industry;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the possibility that new marketing or usage stimulation campaigns or efforts and customer retention schemes are not an effective expenditure;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the possibility that the Group&#146;s integration efforts do not reduce the time to market for new products or improve the Group&#146;s cost position;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">loss of suppliers or disruption of supply chains;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the Group&#146;s ability to satisfy working capital requirements through borrowing in capital markets, bank facilities and operations;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">changes in exchange rates, including particularly the exchange rate of pounds sterling to the euro and the US dollar;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">changes in statutory tax rates and profit mix which would impact the weighted average tax rate;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">changes in tax legislation in the jurisdictions in which the Group operates;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">final resolution of open issues which might impact the effective tax rate; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">timing of tax payments relating to the resolution of open issues.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">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 &#147;Risk Factors, Trends and Outlook &#150; Risk Factors&#148; on pages 43 to 44. 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.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46
	</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p47"></a>
<p><a href="#contents2">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><font color="#ffffff" size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><B>Performance</B></font></td>
  </tr>
  <tr>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<font size="2">
<p>&nbsp;</p>
<p>
  <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-GAAP Information</font></b>
</p>
<p>
  <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation of Adjusted Operating Profit</font>
  <br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group presents
  operating profit excluding impairment losses and non-recurring amounts related
  to business acquisitions and disposals for the Group and the Group&#146;s reported
  business segments, being mobile telecommunications and other operations. The
  Group believes that it is both useful and necessary to report these measures
  for the following reasons:</font>
</p>
</font>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">these measures are used by the Group for internal performance analysis;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
       presentation by the Group&#146;s reported business segments of these measures facilitates comparability with other companies, although the Group&#146;s
       measures may not be comparable with similarly titled profit measurements
    reported by other companies; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is useful in connection with discussion with the investment analyst community and debt rating agencies.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Reconciliation of these measures to the closest equivalent GAAP measure, operating
(loss)/profit, is provided in note 3 to the Consolidated Financial Statements.
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Organic Growth</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group believes
that &#147;organic growth&#148;, which is not intended to be a substitute, or
superior to, reported growth, provides useful and necessary information to investors
and other interested parties for the following reasons:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it provides additional information on underlying growth of the business without the effect of factors unrelated to the operating performance of the
business;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is used by the Group for internal performance analysis; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it
       facilitates comparability of underlying growth with other companies, although
       the term &#147;organic&#148; is not a defined term under IFRS, or US GAAP,
       and may not, therefore, be comparable with similarly titled measures reported
    by other companies.</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reconciliation
of organic growth to reported growth is shown below:</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td colspan="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
    of</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td colspan="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Organic</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
    of foreign</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acquisitions</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reported</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td colspan="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exchange</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and
    disposals</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td colspan="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td colspan="2"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile telecommunications</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Voice revenue</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>5.3</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.6</b></font></td>
   <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.2</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>8.1</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-voice
    revenue</font></td>
   <td width="48%" nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> &#150; Messaging</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>10.6</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.4</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.1</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>13.1</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td align="left" nowrap>&nbsp;</td>
   <td align="left" nowrap><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Data</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>60.4</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(0.4</b></font></td>
   <td align="left" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.2</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>61.2</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total service revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>7.2</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.5</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.2</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>9.9</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisition and retention revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.3</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.8</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(0.2</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.9</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>6.7</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.5</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.1</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>9.3</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interconnect costs</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>7.2</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.7</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.5</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>10.4</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>7.5</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.5</b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2.0</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>10.0</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td colspan="2"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reported</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
          of impairment</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
          of</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact
          of</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth
          in</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">losses
          and non-recurring</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reported
          growth</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Organic</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">foreign</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acqusitions</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
          non-GAAP</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amounts
          related to business</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
          equivalent</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">growth</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exchange</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and
          disposals</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">measure</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acquisition
          and disposals</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">GAAP
        measure<sup>(2)</sup></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Adjusted
          operating profit</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
        telecommunications profit</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>10.3</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.1</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>11.4</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="14%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(290.2</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(278.8</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        operating profit</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>11.4</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1.0</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.1</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>12.5</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(291.3</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(278.8</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Before impairment losses and non-recurring amounts related to business acquisitions and disposals.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Closest equivalent GAAP measure is operating (loss)/profit.</font></td>
</tr>
</table>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash Flow Measures</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
presenting and
discussing the Group&#146;s reported results, free cash flow and operating free
cash flow are calculated and presented on the basis of methodologies other than
in accordance with IFRS. The Group believes that it is both useful and necessary
to communicate free cash flow to investors and other interested parties, for
the following reasons:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">free
       cash flow allows the Company and external parties to evaluate the Group&#146;s liquidity and the cash generated by the Group&#146;s
       operations. Free cash flow does not include items determined independently
       of the ongoing business, such as the level of dividends, and items which
       are deemed discretionary, such as cash flows relating to acquisitions
       and disposals or financing activities. In addition, it
does not necessarily reflect the amounts which the Group has an obligation to
       incur. However, it does reflect the cash available for such discretionary
       activities, to strengthen the balance sheet or to provide returns to shareholders
       in the form of
dividends or share purchases;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">free
       cash flow facilitates comparability of results with other companies, although
       the Group&#146;s measure of free cash flow may not be directly comparable
       to
similarly titled measures used by other companies;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is used by management for planning, reporting and incentive purposes; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is useful in connection with discussion with the investment analyst community and debt rating agencies.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group believes that the presentation of operating free cash flow is useful
and necessary for investors and other interested parties as it provides the quantitative
basis for the cash flow targets of the One Vodafone initiatives outlined on pages
18 to 19. This measure may not be directly comparable to similarly titled measures
used by other companies.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A reconciliation of net cash inflow from operating activities, the closest equivalent
GAAP measure,
to operating free cash flow and free cash flow, is provided in &#147;Performance &#150; Financial
Position and Resources &#150; Liquidity and Capital Resources &#150; Cash Flows&#148; on
page 39.
</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">47</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p48"></a>
<p><a href="#contents2">Back to Contents</a></p>
</font>

<p><font size="2">
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-GAAP Information</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net Debt</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
presenting and
discussing the Group&#146;s indebtedness and liquidity position, net debt is
calculated. There is no definition of net debt within IFRS. The Group believes
that it is both useful and necessary to communicate net debt to investors and
other interested parties, for the following reasons:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">net
       debt allows the Company and external parties to evaluate the Group&#146;s
    overall indebtedness and liquidity position;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">net
       debt facilitates comparability of indebtedness and liquidity with other
       companies, although the Group&#146;s measure of net debt may not be directly
       comparable
to similarly titled measures used by other companies;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is used by management for planning and reporting purposes; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is used in discussions with the investment analyst community and the debt rating agencies.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A reconciliation of short-term and long-term borrowings, the closest equivalent
GAAP measures, to net debt is shown on page 41.
</font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation of Other Revenue in Discussion of Trading Results</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
discussion of the trading results of the Group and principal markets on pages
30 to 37 presents the cost of sales related to acquisition and retention costs,
net of revenue attributable to these activities. The Group believes that this
basis of presentation provides useful information for investors for the following
reasons:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it provides trends in net subsidies with respect to the acquisition and retention of customers; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it
       facilitates comparability of results with other companies operating in
       the mobile telecommunications business. This performance indicator is
       commonly used in the mobile telecommunications industry and by Vodafone
       management to compare net subsidies provided to acquire and retain customers
       to prior periods and internal forecasts. &#147;Net acquisition costs&#148; and &#147;Net retention costs&#148; as
    used in the trading results are defined on page 49.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Reconciliation of &#147;Net other revenue&#148; to the closest equivalent GAAP
measure, revenue, and &#147;Net acquisition costs&#148; and &#147;Net retention
costs&#148; to their closest equivalent GAAP measure, gross acquisition and retention
costs,
are shown below:
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr valign="bottom">
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
    Mobile</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">telecommunications</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operations</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Year
    ended 31 March 2006:</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net other revenue</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>532</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>114</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>15</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>6</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>135</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>137</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisition and retention revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,724</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>246</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>178</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>374</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>345</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>583</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2,256</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>360</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>193</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>380</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>480</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>720</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total service revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>25,881</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>5,394</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>4,170</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>3,615</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>4,568</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>8,530</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>28,137</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>5,754</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>4,363</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>3,995</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>5,048</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>9,250</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Year ended 31 March 2005:</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net other revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">546</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">177</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisition and retention revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,647</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">242</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">168</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">296</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">390</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">554</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,193</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">364</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">182</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">298</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">567</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total service revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,547</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,320</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,091</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,963</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,498</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,973</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,740</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,684</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,273</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,261</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,065</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,637</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Year
    ended 31 March 2006:</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net acquisition costs</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,541</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>366</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>78</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>274</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>380</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>443</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net retention costs</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,444</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>349</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>93</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>249</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>395</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>358</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisition and retention revenue</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,724</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>246</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>178</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>374</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>345</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>583</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross acquisition and retention costs</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>4,709</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>961</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>349</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>897</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,120</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,384</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
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   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Year ended 31 March 2005:</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net acquisition costs</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,446</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">348</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">246</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">388</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">393</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net retention costs</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,234</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">330</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">172</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">391</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">267</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisition and retention revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,647</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">242</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">168</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">296</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">390</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">554</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
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   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross acquisition and retention costs</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,327</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">920</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">313</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">714</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,169</font></td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,214</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
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   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
</table>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font><br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Certain
of the statements
within the section titled &#147;Chief Executive&#146;s Review&#148; on pages
8 to 11 and the section titled &#147;One Vodafone&#148;, on pages 18 to 19 contain
forward-looking non-GAAP financial information for which at this time there is
no comparable GAAP measure and which at this time cannot be quantitatively reconciled
to comparable GAAP financial information.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Certain of the statements
within the section titled &#147;Risk Factors, Trends and Outlook&#148; on pages
43 to 45, contain forward-looking non-GAAP financial information which at this
time cannot be quantitatively reconciled to comparable GAAP financial information.
</font></p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">48</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p49"></a>
<p><a href="#contents2">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><font color="#ffffff" size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><B>Performance</B></font></td>
  </tr>
  <tr>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Definition of Terms</b>
</font></p>
<p><font size="2"><br>
  </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  definition of terms used throughout the performance section is detailed below.
  These terms are not uniformly defined by all companies in the Group&#146;s
  industry. Accordingly, such measures may not be comparable with similarly titled
  measures and disclosures by other companies.
</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="20%" valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3G
    broadband </font></b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
        technology which enables data transmission at speeds of up to two megabits
        per
second. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>3G
    device</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> A
    handset or device capable of accessing 3G data services. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Acquired
            intangibles</font><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
amortisation</font></b></font></td>
    <td valign="top"><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation
          relating to intangible assets identified and recognised separately
          in
respect of a business combination in excess of the intangible </font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">assets
recognised by the
acquiree prior to acquisition.</font> </font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2">&nbsp;</font></td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Active
    customer</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> A
        customer who either pays a monthly fee or has made or received a chargeable
        event in the last three months. The active customers are expressed as
        a percentage of the closing customer base. Contract and prepaid activity
    is reported separately. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>ARPU</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Total
        revenue excluding handset revenue and connection fees divided by the
        weighted average number of
customers during the period. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capitalised
    fixed asset<br>
    </font><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">additions</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">    </font></b></font></td>
    <td valign="top"><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This
          measure includes the aggregate of capitalised property, plant and equipment
    additions and capitalised software costs. </font> </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Churn</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Total
        gross customer disconnections in the period divided by the average total
        customers in the
period. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Controlled
    and jointly </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
    </font><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>controlled
    networks</b></font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">    </font></font></td>
    <td valign="top"><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
          networks include the Group&#146;s mobile operating subsidiaries and
          joint
ventures. Measures for controlled and jointly controlled networks </font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">include
100%
for subsidiaries and the Group&#146;s proportionate share for joint ventures.</font> </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Customer </font></b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
        customer is defined as a Subscriber Identity Module (&#147;SIM&#148;),
        or in territories where SIMs do not exist, a unique mobile telephone
        number, which has access to the network for any purpose (including data
        only usage) except telemetric applications. Telemetric applications include,
        but are not limited to, asset and equipment tracking, mobile payment
        and billing functionality (for example, vending machines and meter readings)
        and include voice enabled customers whose usage is limited to a central
        service operation (for example, emergency response applications in vehicles).
    SIM information is derived from local operating company billing systems. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Data
    revenue</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Data
    revenue includes all non-voice service revenue excluding messaging. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Depreciation
    and other<br>
    </font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> </font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">amortisation</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">    </font></b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> This
        measure includes the profit or loss on disposal of property, plant and
    equipment. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>EBITDA</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Adjusted
    operating profit before depreciation and amortisation. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Interconnect
    costs</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> A
        charge paid by Vodafone to other fixed line or mobile operators when
        a Vodafone
customer calls a customer connected to a different network. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Messaging
    revenue</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Messaging
        revenue comprises revenue from providing SMS and MMS services including
        wholesale messaging revenue, revenue from the use of messaging services
        by Vodafone customers roaming away from their home network and customers
    visiting the local network. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Net
    acquisition costs</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        total of connection fees, trade commissions and equipment costs, net
        of related revenue, relating to new customer connections. This performance
        indicator is commonly used in the mobile telecommunications industry
        and by Vodafone management to compare net subsidies provided to acquire
        customers to prior periods and internal forecasts. Management believes
        that this measure provides useful information for investors regarding
        trends in net subsidies to acquire customers for mobile telecommunications
    services from period to period. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Net
    retention costs</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        total of trade commissions, loyalty scheme and equipment costs, net of
        related revenue, relating to customer retention and upgrade. This performance
        indicator is commonly used in the mobile telecommunications industry
        and by Vodafone management to compare net subsidies provided to retain
        customers to prior periods and internal forecasts. Management believes
        that this measure provides useful information for investors regarding
        trends in net subsidies to retain customers for mobile telecommunications
    services from period to period. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Organic
    growth</b></font></td>
    <td valign="top"><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
          percentage movements in organic growth are presented to reflect operating
          performance on a comparable basis. Where an entity, being a subsidiary,
          joint venture or associated undertaking, was newly acquired or disposed
          of in the current or prior period, the Group adjusts, under organic
          growth calculations, the results for the current and prior period to
          remove the amount the Group earned in both periods as a result of the
          acquisition or disposal of subsidiary or associated undertakings. Where
          the Group increases, or decreases, its ownership interest in a joint
          venture or associated undertaking in the current or prior period, the
          Group&#146;s results for the prior period are restated at the current
          period&#146;s
ownership level.</font> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Further
adjustments in organic calculations exclude the effect of exchange rate movements
by restating
the prior period&#146;s results as if they had been generated at the current
period&#146;s exchange rates and excludes the amortisation of acquired intangible
assets.</font>  </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Proportionate
    customers</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        proportionate customer number represents the number of mobile customers
        in ventures which the Group either controls or invests, based on the
        Group&#146;s ownership
in such ventures. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Purchased
    licence<br>
    </font><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">amortisation</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">    </font></b></font></td>
    <td valign="top"><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation
          relating to capitalised licence and spectrum fees purchased directly
          by the
Group, and such fees recognised by an acquiree prior to </font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">acquisition.</font> </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Service
    revenue</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Service
        revenue comprises all revenue related to the provision of ongoing services
        including, but not limited to, monthly access charges, airtime usage,
        roaming, incoming and outgoing network usage by non-Vodafone customers
    and interconnect charges for incoming calls. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Termination
    rate</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> A
        per minute charge paid by a telecommunications network operator when
        a customer makes a
call to another mobile or fixed line network operator. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Vodafone
    live! active device</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> A
        handset or device equipped with the Vodafone live! portal which has made
        or
received a chargeable event in the last month. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>VOIP</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Voice
        over internal protocol is the routing of voice calls over the internet
        or through another IP
based network. </font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>WiFi</b></font></td>
    <td valign="top"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> WiFi
        refers to underlying technology of wireless local area networks which
        enable a user, with WiFi devices, to connect to the internet in range
    of a WiFi access point. </font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page>
<a name="p50"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p>&nbsp;</p>
<p><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board
  of Directors and Group Management</font></b></p>
<p align="center">
<img src="b826353-20fx52x1.jpg" border=0>
</p>
<div style="float: left; width: 48%">
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors and Senior Management</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The business
  of the Company is managed by its board of directors (&#147;the Board&#148;).
  Biographical details of the directors and senior management at the date of this
  report are as
  follows:</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chairman</font></b>
<br>
<b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1. Lord MacLaurin of Knebworth, </font></b><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">DL, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged
69, joined the Board in January 1997 and became Chairman in July 1998. He is
Chairman of the Nominations and Governance Committee. Lord MacLaurin was Chairman
of Tesco Plc from 1985 to 1997 and has been a director of Enterprise Oil Plc,
Guinness Plc, National Westminster Bank Plc and Whitbread Plc. He is also a non-executive
director of the investment bank
The Evolution Group Plc and a member of the Supervisory Board of Heineken NV.
Lord MacLaurin will retire from the Board at the conclusion of the Company&#146;s
AGM on 25 July 2006. Upon his retirement Lord MacLaurin will become an advisor
to the
Company and Chairman of The Vodafone Group Foundation.</font>
</font></p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Deputy Chairman and senior independent director</font></b><font size="2">
<br>
</font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2. Paul Hazen, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged
64, has been a member of the Board since June 1999 and became Deputy Chairman
and senior independent director in May 2000. He is a member of the Nominations
and Governance Committee. Paul Hazen became a director of AirTouch Communications
Inc. in April 1993. In 2001, he retired as Chairman and Chief Executive Officer
of Wells
Fargo &amp; Company and its principal subsidiary, Wells Fargo Bank, NA. He is Chairman of KKR Financial Corp and Accel-KKR and is also a director of Safeway, Inc., Willis Group Holdings Limited and Xstrata AG. Paul Hazen will retire from the Board
after the Company&#146;s AGM on 25 July 2006.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Executive Directors</font></b>
<br>
</font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3. Arun Sarin, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief Executive, aged 51, became a member of the Board in June 1999. He was appointed Chief
Executive in July 2003 and is a member of the Nominations and Governance Committee. Arun Sarin joined Pacific Telesis Group in San Francisco in 1984 and has served in many executive positions in his 20 year career in telecommunications. He was a
director of AirTouch Communications Inc. from July 1995 and was President and Chief Operating Officer from February 1997 to June 1999. He was Chief Executive Officer for the Vodafone United States and Asia Pacific region until 15 April 2000, when he
became a non-executive director. He has served as a director of The Gap, Inc., The Charles Schwab Corporation and Cisco Systems, Inc., and is a non-executive director of the Court of the Bank of England.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4. Sir Julian Horn-Smith, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deputy
Chief Executive, aged 57, has been a member of the Board since June 1996. Previously
the Group Chief Operating Officer, Sir Julian was appointed Deputy Chief Executive
in January 2005. Since then, he has been responsible for Business Development,
which includes delivering Vodafone&#146;s product and services portfolio to
Vodafone&#146;s affiliates and Partner Networks and expanding and consolidating Vodafone&#146;s footprint. He is a director of China Mobile (Hong Kong) Limited and several of the Group&#146;s
overseas operating companies, including Chairman of the Supervisory Boards of
Vodafone Deutschland GmbH and Vodafone D2 GmbH. Sir Julian is also a non-executive
director of Lloyds TSB Group plc, Smiths Group plc and Sage Group PLC. Sir Julian
will retire from the Board at the conclusion of the AGM on 25
July 2006 and he will become Chairman of Sage Group PLC on 1 August 2006.</font>
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5. Thomas Geitner, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief Executive Officer, New Businesses, aged 51, was appointed to this role on 1 May
    2006. New Businesses will focus on the delivery of new revenue streams beyond pure mobile. He was appointed to the Board in May 2000 during which time he established and managed Global Products and Services. He was responsible for the single
    Vodafone brand, Vodafone live! and Vodafone Wireless Office and the partner networks franchise. In July 2003, he was appointed Chief Technology Officer responsible for the rollout of 3G, the consolidation of data centres and service platform
    operations and the establishment of the Global Supply Chain organisation. Prior to joining the Group, he was a member of the Management Board of RWE AG.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6. Andy Halford, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief
Financial Officer, aged 47, joined the Board in July 2005. Andy joined Vodafone
in 1999 as Financial Director for Vodafone Limited, the UK operating company,
and in 2001 he became Financial Director for Vodafone&#146;s Northern Europe,
Middle East and Africa Region. In 2002, he was appointed Chief Financial Officer
of Verizon Wireless in the US and is currently a member of the Board of Representatives
of The Verizon Wireless partnership. Prior to joining Vodafone, he was Group
Finance Director at East Midlands Electricity Plc. Andy holds a bachelors degree
in Industrial
Economics from Nottingham University and is a Fellow of the Institute of Chartered
Accountants in England and Wales.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-executive directors</font></b>
<br>
</font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7. Sir John Bond, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 64, was appointed to the Board in January 2005 and is a member of the Nominations
and Governance and Remuneration Committees. Sir John Bond is a non-executive director of Ford Motor Company. He retired from the position of Group Chairman of HSBC Holdings plc on 26 May 2006, after 45 years of service. Other previous roles include
Chairman of HSBC Bank plc and director of The Hong Kong and Shanghai Banking Corporation and HSBC North America Holdings Inc. Previous non-executive directorships include the London Stock Exchange, Orange plc, British Steel plc and the Court of the
Bank of England. Sir John will succeed Lord MacLaurin as Chairman of the Company on conclusion of the AGM on 25 July 2006.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8. Dr Michael Boskin, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged
60, became a member of the Board in June 1999 on completion of the merger with
AirTouch Communications Inc. and is Chairman of the Audit Committee and a member
of the Remuneration Committee. Dr Boskin was a director of AirTouch Communications
Inc. from August 1996 to June 1999. He has been a Professor of Economics at Stanford
University since 1971 and was Chairman of the President&#146;s Council of Economic Advisers from February 1989 until January 1993. Dr Boskin is President and CEO of Boskin &amp; Co.,
an economic consulting company, and is also a director of Exxon Mobil Corporation,
Shinsei Bank Limited and Oracle Corporation.</font>
</font></p>

</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p51"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center"><img src="b826353-20fx53x1.jpg" border=0></p>


<div style="float: left; width: 48%">

<p><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9. Lord Broers, </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 67, joined the Board in January 1998 and is a member of the Audit Committee and the
    Nominations and Governance Committee. He is President of the Royal Academy of Engineering and a former Vice-Chancellor of Cambridge University. He spent many years with IBM, in senior roles within the research and development function, and is a
    Fellow of the Royal Society, the Institute of Electrical Engineers and the Institute of Physics. Lord Broers is also a Foreign Associate of the US National Academy of Engineering, a trustee of the British Museum and Chairman of the House of Lords
    Science and Technology Select Committee. He chairs The Vodafone Group Foundation and the Company&#146;s UK pension trustee company.</font><font size="2">
  </font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10. John Buchanan, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 62, has been a member of the Board since April 2003. He is a member of the Audit
Committee and, solely for the purposes of relevant legislation, is the Board&#146;s appointed financial expert on that Committee. He retired from the board of directors of BP Plc in 2002 after six years as Group Chief Financial Officer and executive
director following a wide-ranging career with the company. He was a member of the United Kingdom Accounting Standards Board from 1997 to 2001. He is Chairman of Smith &amp; Nephew plc and a non-executive director of AstraZeneca PLC and BHP Billiton.
John Buchanan will succeed Paul Hazen as the Deputy Chairman and senior independent director after the Company&#146;s AGM on 25 July 2006.</font>
</font></p>
  <p><font size="2"> <b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11.
    Penny Hughes, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged
    46, has been a member of the Board since September 1998 and is a member of
    the Audit Committee. She has particular expertise in marketing and has developed
    experience in many human resource areas, including leadership development,
    motivation and retention. She is President of the Advertising Association,
    a member of the advisory committee of Bridgepoint Capital Limited and a non-executive
    director of Reuters Group PLC, Scandinaviska Enskilda Banken AB and The Gap,
    Inc. </font></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Penny
    Hughes was President of Coca-Cola Great Britain and Ireland, and has been
    a non-executive director of Next Plc, Trinity Mirror Plc and The Body Shop
    Plc. She will retire from the Board after the Company&#146;s AGM on 25 July
    2006.</font> </font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12. Anne Lauvergeon, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 46, joined the Board in November 2005 and is a member of the Audit Committee.
She is Chairman of the Executive Board of AREVA, the leading French energy company, having been appointed to that role in July 2001. She started her professional career in 1983 in the iron and steel industry and in 1990 she was named Adviser for
Economic International Affairs at the French Presidency and Deputy Chief of its Staff in 1991. In 1995, she became a Partner of Lazard Fr&egrave;res &amp; Cie, subsequently joining Alcatel Telecom as Senior Executive Vice President in March 1997.
She was responsible for international activities and the Group&#146;s industrial shareholdings in the energy and nuclear fields. In 1999, she was appointed Chairman and CEO of COGEMA. Anne Lauvergeon is currently also Vice Chairman of the
Supervisory Board of Safran and a non-executive director of Total and Suez.</font>
</font></p>

</div>
<div style="float: right; width: 48%">

<p><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13.
          Professor J&uuml;rgen Schrempp, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 61, has been a member of the Board since May 2000 and is a member
    of the Remuneration Committee and the Nominations and Governance Committee. He is former Chairman of the Board of Management of DaimlerChrysler and one of the principal architects of Daimler-Benz&#146;s merger with Chrysler in 1998. He became
    Chairman of Daimler-Benz in 1995. He is a non-executive director of the South African Coal, Oil and Gas Corporation (SASOL) and Compagnie Financi&egrave;re Richemont SA, Switzerland. Professor Schrempp is Chairman Emeritus of the Global Business
    Coalition on HIV/AIDS. He has received numerous awards and has also been recognised for his civic leadership and charitable contributions. Amongst other distinctions, he is Commander of the French Legion of Honor and holds South Africa&#146;s
    highest civilian award, the Order of Good Hope, conferred upon him by President Nelson Mandela.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14. Luc Vandevelde, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 55, joined the Board in September 2003 and is Chairman of the Remuneration
Committee. He is Chairman of the Supervisory Board of Carrefour SA and a director of Soci&eacute;t&eacute; G&eacute;n&eacute;rale. He is the Founder and Managing Director of Change Capital Partners LLP, a private equity fund. Luc Vandevelde was
formerly Chairman of Marks &amp; Spencer Group Plc and Chief Executive Officer of Promodes, and he has held senior European and international roles with Kraft General Foods.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15. Philip Yea, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged 51, became a member of the Board in September 2005 and is a member of the
Remuneration Committee. He is the Chief Executive Officer of 3i Group plc, having been appointed to that role in July 2004. Prior to joining 3i, he was Managing Director of Investcorp and, from 1997 to 1999, the Group Finance Director of Diageo plc
following the merger of Guinness plc, where he was Finance Director, and Grand Metropolitan plc. He has previously held non-executive roles at HBOS plc and Manchester United plc.</font>
</font></p>
  <p><font size="2"> <b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Appointed
    since 31 March 2006<br>
    </font></b></font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Anthony
    Watson, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">aged
    61, was appointed to the Board on 1 May 2006, having retired from his role
    as Chief Executive of Hermes Pensions Management Limited, a position he had
    held since 2002. Previously he was Hermes&#146; Chief Investment Officer,
    having been Managing Director of AMP Asset Management and the Chief International
    Investment Officer of Citicorp Investment Management from 1991 until joining
    Hermes in 1998. He is Chairman of Marks &amp; Spencer Pension Trust Ltd, the
    Strategic Investment Board in Northern Ireland and also a non-executive director
    of Hammerson Group Plc and Witan Investment Trust Plc. </font></font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">51</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p52"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board of Directors and Group Management </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font><font size="3">

</font></p>
<div style="float: left; width: 48%">

<p><font size="3"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Senior Management</font>
    <br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Members of the Executive Committee who are not also executive directors are regarded as senior managers of the Company.</font><font size="2">
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Executive Committee</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chaired
by Arun Sarin,
this committee focuses on the Group&#146;s strategy, financial structure and
planning, succession planning, organisational development and Group-wide policies.
The Executive Committee membership comprises the Executive Directors, details
of whom are shown on pages 50 to 51, and the senior managers who are listed below:</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Brian Clark, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group Human Resources Director, aged 57, was appointed to this position in April 2005. He
joined Vodafone in 1997 and, before his current position, was Chief Executive, Asia Pacific Region. Prior to joining Vodafone, he was Managing Director and Chief Executive Officer of Telkom SA Limited, South Africa.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Paul Donovan, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief
Executive Officer, EMAPA (Central Europe, Middle East, Asia Pacific and Affiliates),
aged 47, was appointed to this position on 1 May 2006. He joined Vodafone in
1999 as Managing Director &#150; Commercial, was appointed Chief Executive of Vodafone Ireland in 2001 and became Chief Executive Officer, Other Vodafone Subsidiaries in
January 2005, managing fourteen of Vodafone&#146;s controlled entities. He has
over fifteen years experience in the telecommunications and IT industries and
has held senior roles at BT, One2One and Optus Communications and, prior to that,
marketing
roles at the Mars Group, Coca Cola and Schweppes Beverages.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Warren Finegold, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief
Executive, Global Business Development, aged 49, was appointed to this position
and joined the Executive Committee on 24 April 2006. He was previously a Managing
Director of UBS Investment Bank and head of its technology team in Europe. He
is responsible for Business Development, M&amp;A and Partner Networks.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Alan Harper, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group Strategy and Business Integration Director, aged 49, joined Vodafone in 1995 as Group
Commercial Director and he subsequently became Managing Director of Vodafone UK. He was appointed to his current position in July 2000. Prior to joining the Group, he held the post of Business Strategy Director with Mercury One2One and senior roles
with Unitel and STC Telecoms. He is also a member of the Vodafone D2 GmbH Supervisory Board and Chairman of the Vodafone UK Foundation</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Simon Lewis, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group Corporate Affairs Director, aged 47, joined Vodafone in November 2004. He previously
held senior roles at Centrica Plc including Managing Director, Europe and Group Director of Communications and Public Policy. Prior to that he was Director of Corporate Affairs at NatWest Group and the Head of Public Relations at SG Warburg plc. He
was President of the Institute of Public Relations in 1997 and is a Visiting Professor at the Cardiff School of Journalism. In 1998, he was seconded to Buckingham Palace for two years as the first Communications Secretary to the Queen. He is a
Fulbright Commissioner and a trustee of The Vodafone Group Foundation.</font>
</font></p>
  <p><font size="2"> <b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Tim
    Miles, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Global
    Chief Technology Officer, aged 48, was appointed to this position on </font></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
    April 2006. He joined Vodafone New Zealand in 2001 as Director of Business
    Markets and was appointed Managing Director of Vodafone New Zealand in 2002.
    In April 2005, he joined Vodafone UK as Chief Executive Officer before moving
    to his present role. He has over twenty years&#146; experience in the IT and
    telecommunications industry. Prior to joining Vodafone, he was Vice President
    for Global Industries, Unisys Corporation, USA and, before that, held executive
    positions with Data General and IBM.</font> </font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Bill Morrow, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief Executive Officer, Europe, aged 46, was appointed to this position on 1 May 2006 after
ten years with the Vodafone Group. Over the last ten years, he has held various positions, including President of Vodafone Japan, Chief Executive of Vodafone UK and President of Japan Telecom. He has twenty-six years of experience in the
telecommunications industry, holding senior leadership roles in the USA, Asia and Europe. Bill Morrow is widely recognised for operational performance lifts, technology management and company restructuring.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Frank Rovekamp, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Global Chief Marketing Officer, aged 51, was appointed to this position and joined the
Executive Committee on 1 May 2006. He joined Vodafone four years ago as Marketing Director and a Member of the Management Board of Vodafone Netherlands and later moved to Vodafone Germany as Chief Marketing Officer and a member of the Management
Board. Before joining Vodafone, Frank held roles as President and Chief Executive Officer of Beyoo and Chief Marketing Officer with KLM Royal Dutch Airlines.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Stephen Scott, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
General Counsel and Company Secretary, aged 52, was appointed Group General Counsel
and Company Secretary in 1991, prior to which he was employed in the Racal Group
legal department, having moved into industry in 1980 from private law practice
in London. He is a director of the Company&#146;s UK pension trustee company
and of ShareGift (the Orr Mackintosh Foundation Limited) and is a director and
trustee of LawWorks (the Solicitors Pro Bono Group Limited).</font>
</font></p>
<p>&nbsp;</p>
</div>
<div style="float: right; width: 48%">


<p><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Strategy Board</font></b>
    <br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Strategy Board meets two or three times per year to discuss strategy. This is attended by Executive Committee members and the Chief Executive Officers of the major operating
companies and other selected individuals based on Strategy Board topics.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other Board and Executive Committee members</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following members also served on the Board or the Executive Committee during the 2006 financial year:</font><font size="2">
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Peter Bamford </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">was an executive director until 7 March 2006.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Ken Hydon </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">was an executive director until he retired on 26 July 2005.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Sir David Scholey CBE </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">was a
non-executive director until he retired on 26 July 2005.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pietro Guindani, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief Executive Italy, was a member of Executive Committee until</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font>&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2006.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fritz Joussen, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief Executive Germany, was a member of Executive Committee until</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font>&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2006.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jurgen von Kuczkowski </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">was a member of the Executive Committee until he retired on 30 September 2005.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shiro Tsuda, </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive Chairman and Chairman of the Board, Vodafone K.K., was an Executive Committee
member until the completion of the sale of the Japanese business on 27 April 2006.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Phil Williams </font></b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">was a member of the Executive Committee until he retired on 31 July 2005.</font>
</font></p>
</div><br clear="all">

<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td width="3%"><font color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"><a name="contents3"></a></div>
<page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr bgcolor="#ccffff">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#ccffff">
      <td>&nbsp;</td>
      <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contents</font></td>
      <td align="right">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#ccffff">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Page</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#ccffff">
      <td>&nbsp;</td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr bgcolor="#ccffff">
      <td width="2%"><font size="2">&nbsp;</font></td>
      <td><a href="#p53"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate
        Governance</font></a></td>
      <td width="10%" align="right"><a href="#p53"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></a></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p53a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Introduction</font></a></td>
      <td align="right"><a href="#p53a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p54"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Directors and Organisation</font></a></td>
      <td align="right"><a href="#p54"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">54</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Executive Management</font></a></td>
      <td align="right"><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Committees of the Board</font></a></td>
      <td align="right"><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Statement on Internal Control</font></a></td>
      <td align="right"><a href="#p55"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Control Environment</font></a></td>
      <td align="right"><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Review of Effectiveness</font></a></td>
      <td align="right"><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Relations with Shareholders</font></a></td>
      <td align="right"><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Political Donations</font></a></td>
      <td align="right"><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Directors&#146; Indemnities</font></a></td>
      <td align="right"><a href="#p56"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p57"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Auditors</font></a></td>
      <td align="right"><a href="#p57"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p57"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Report from the Audit Committee</font></a></td>
      <td align="right"><a href="#p57"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employees</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Employee Involvement</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Employment Policies</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Equal Opportunities</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        The Disabled</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Health, Safety and Wellbeing</font></a></td>
      <td align="right"><a href="#p58"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p59"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate
        Responsibility and Environmental Issues</font></a></td>
      <td align="right"><a href="#p59"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">59</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p59"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Corporate Responsibility</font></a></td>
      <td align="right"><a href="#p59"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">59</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p60"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Environmental Issues</font></a></td>
      <td align="right"><a href="#p60"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p60"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Environmental Performance Indicators</font></a></td>
      <td align="right"><a href="#p60"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s
        Report to Shareholders on Directors&#146; Remuneration</font></a></td>
      <td align="right"><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff"><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Remuneration Committee</font></a></td>
      <td align="right"><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Remuneration Policy</font></a></td>
      <td align="right"><a href="#p61"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p62"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Report on Executive Directors&#146; Remuneration for the 2006</font></a></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;&nbsp;&nbsp;<a href="#p62"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
        Year and Subsequent Periods</font></a></font></td>
      <td align="right"><a href="#p62"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">62</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p65"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Audited Information</font></a></td>
      <td align="right"><a href="#p65"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">65</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td> <hr noshade size=1></td>
      <td align="right"> <hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors&#146;
        Statement of Responsibility</font></a></td>
      <td align="right"><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Disclosure of Information to Auditors</font></a></td>
      <td align="right"><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td><font size="2">&nbsp;</font></td>
      <td><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;
        Going Concern</font></a></td>
      <td align="right"><a href="#p70"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></a></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr bgcolor="#ccffff">
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
  </table>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><a name="p53"></a>Corporate Governance</font></b>
</p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p53a"></a>Introduction</font>
  <br>
  <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Statement
  of corporate governance policy</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  of directors of the Company is committed to high standards of corporate governance,
  which it considers are critical to business integrity and to maintaining investors&#146;
  trust in the Company. The Group expects all its directors and employees to act
  with honesty, integrity and fairness. The Group will strive to act in accordance
  with the laws and customs of the countries in which it operates; adopt proper
  standards of business practice and procedure; operate with integrity; and observe
  and respect the culture of every country in which it does business.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Combined
  Code</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  ordinary shares are listed in the United Kingdom on the London Stock Exchange.
  As such, the Company is required to make a disclosure statement concerning its
  application of the principles of and compliance with the provisions of the revised
  Combined Code on corporate governance (the &#147;Combined Code&#148;). For the
  year ended 31 March 2006, the Board confirms that the Company has been in compliance with the provisions of section 1 of the Combined Code. The disclosures provided below are nevertheless
intended to provide an explanation of the Company&#146;s corporate governance policies and practices.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US listing
  requirements</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  ADSs are listed on the NYSE and the Company is, therefore, subject to the rules
  of the NYSE as well as US securities laws and the rules of the SEC. The NYSE
  requires US companies listed on the exchange to comply with the NYSE&#146;s
  corporate governance rules but foreign private issuers, such as the Company,
  are exempt from most of those rules. However, pursuant to NYSE Rule 303A.11,
  the Company is required to disclose a summary of any significant ways in which
  the corporate governance practices it follows differ from those required by
  the NYSE for US companies. A summary of such differences is set out below.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has established a Disclosure Committee with responsibility for reviewing and approving controls and procedures over the public disclosure of financial and related
information, and other procedures necessary to enable the Chief Executive and Chief Financial Officer to provide their Certifications of the Annual Report on Form 20-F that is filed with the SEC.</font>
</p>
</div>
<div style="float: right; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Section 404 of the Sarbanes-Oxley Act of 2002 (US) requires the Company to annually assess and make public statements about the quality and effectiveness of its internal controls over
financial reporting. As a non-US company, Vodafone is first required to report on its compliance with section 404 for the year ended 31 March 2007. Management&#146;s report must describe conclusions about the effectiveness of the Company&#146;s internal control over financial reporting based on management&#146;s evaluation as of the end of the Company&#146;s most recent fiscal year.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has established a Steering Committee to provide strategic direction to the Company&#146;s section 404 compliance efforts and a Programme Management Office which monitors
progress and provides detailed guidance to the compliance teams that have been set up in the Group&#146;s subsidiaries and central functions. The Company&#146;s Audit Committee also plays an active role in monitoring these efforts. The Audit
Committee receives progress updates at each of its meetings as well as a bi-annual status presentation from the Programme Management Office. The Company&#146;s external auditors have been consulted throughout the project and will continue to be
involved as the Company finalises its review.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has reviewed the structure and operation of its &#147;entity level&#148; control environment: the overarching structure of review and monitoring essential to the
management of its business.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Each of the Company&#146;s subsidiaries and central functions has ensured that the relevant processes and controls are documented to appropriate standards, taking into account the
guidance provided by the US Public Company Accounting Oversight Board&#146;s Auditing Standard No. 2 and subsequent SEC Staff Questions and Answers related to the standard. The approach taken has been to identify the key financial reporting
processes so that, in aggregate, the Company has reasonable assurance regarding the reliability of its financial reporting and the preparation of financial statements.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company is making satisfactory progress on the work required to enable it to report on its compliance with section 404 at 31 March 2007.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has also adopted a corporate Code of Ethics for senior executive, financial and accounting officers, separate from and additional to its Business Principles, described
below. A copy of this code is available on the Group&#146;s website at www.vodafone.com.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Differences
  from New York Stock Exchange corporate governance practices</font> <br>
  <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Independence</font></b>
  <font size="2"><br>
  <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The NYSE rules
  require that a majority of the Board must be comprised of independent directors
  and the rules include detailed tests that US companies must use for determining
  independence. The Combined Code requires a company&#146;s board of directors
  to assess and make a determination as to the independence of its directors.
  While the Board does not explicitly take into consideration the NYSE&#146;s
  detailed tests, it has carried out an assessment based on the requirements of
  the Combined Code and has determined in its judgement that all of the non-executive
  directors are independent within those requirements. As at the date of this
  Annual Report, the Board comprised the Chairman, four executive directors and
  eleven non-executive directors.</font></font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Committees</font></b>
  </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under NYSE
  rules, US companies are required to have a nominating and corporate governance
  committee and a compensation committee, each composed entirely of independent
  directors with a written charter that addresses the Committees&#146; purpose
  and responsibilities. The Company&#146;s Nominations and Governance Committee
  and Remuneration Committee have terms of reference and composition that comply
  with the Combined Code requirements. The Nominations and Governance Committee
  is chaired by the Chairman of the Board, and its other members are non-executive
  directors of the Company and the Chief Executive. The Remuneration Committee
  is composed entirely of non-executive directors whom the Board has determined
  to be independent. The Company&#146;s Audit Committee is composed entirely of
  non-executive directors whom the Board has determined to be independent and
  who meet the requirements of Rule 10A-3 of the Securities Exchange Act. The
  Company considers that the terms of reference of these committees, which are
  available on its website at www.vodafone.com, are generally responsive to the
  relevant NYSE rules but may not address all aspects of these rules.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Corporate
  governance guidelines</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under NYSE
  rules, US companies must adopt and disclose corporate governance guidelines.
  Vodafone has posted its statement of compliance with the Combined Code on its
  website at www.vodafone.com. The Company also has adopted a Group Governance
  Manual which provides the first level of the framework within which its businesses
  operate. The manual is a reference for Chief Executives and their teams and
  applies to all directors and employees. The Company considers that its corporate
  governance guidelines are generally responsive to, but may not address all aspects
  of, the relevant NYSE rules.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p54"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>



<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Corporate
  Governance<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<div style="float: left; width: 48%">

<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business
  principles</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition
  to the formal requirements of the Listing Authorities and Stock Exchanges described
  above, the Group has developed and implemented its own Business Principles which
  define its relationships with all of its stakeholders, govern how Vodafone conducts
  its day-to-day business and represents the additional commitments the Group
  makes to its stakeholders. These can be found on the Group&#146;s website at
  www.vodafone.com.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Business Principles apply to all subsidiary companies in the Group. Chief Executives are responsible for ensuring application of the Business Principles within their business.
Vodafone also promotes the Business Principles to its joint venture companies, associated undertakings, business partners and third parties.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Every employee is expected to act in accordance with the Business Principles. A confidential email facility has been established for employees to report any concerns.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group tracks the implementation of its Business Principles through its internal audits.</font>
</p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors
  and Organisation </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  Board composition</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  Board consists of 16 directors, 12 of whom served throughout the 2006 financial
  year. At 31 March 2006, in addition to the Chairman, Lord MacLaurin, there were
  four executive directors and ten non-executive directors. The Deputy Chairman,
  Paul Hazen, is the nominated senior independent director and his role includes
  being available for approach or representation by directors or significant shareholders
  who may feel inhibited from raising issues with the Chairman. He is also responsible
  for conducting an annual review of the performance of the Chairman and, in the
  event it should be necessary, convening an annual meeting of the non-executive
  directors.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip Yea, Anne Lauvergeon and Anthony Watson joined the Board as non-executive directors on 1 September 2005, 1 November 2005 and 1 May 2006 respectively. Peter Bamford ceased to be
a member of the Board on 7 March 2006. Lord MacLaurin, Sir Julian Horn-Smith, Paul Hazen and Penny Hughes will retire on conclusion of the Company&#146;s AGM on 25 July 2006. Sir John Bond will become the Chairman of the Company following the
retirement of Lord MacLaurin and John Buchanan will succeed Paul Hazen as the Deputy Chairman and senior independent director. The Company considers all of its present non-executive directors to be fully independent. The executive directors are Arun
Sarin (Chief Executive), Sir Julian Horn-Smith, Thomas Geitner and Andy Halford.</font>
</p>
</div>
<div style="float: right; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following table shows directors&#146; attendance at meetings during the 2006 financial year:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Nominations
      and</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audit</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Governance</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Remuneration</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committee</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committee</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committee</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Number
      of meetings</font></b></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">during
      the year</font></b></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">to 31
      March 2006</font></b></td>
    <td width="12%" align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="12%" align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td width="5%"><font size="2">&nbsp;</font></td>
    <td width="12%" align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td width="3%"><font size="2">&nbsp;</font></td>
    <td width="12%" align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td width="5%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord
      MacLaurin</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Paul
      Hazen</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      John Bond</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dr Michael
      Boskin</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(5)</sup></font><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord
      Broers</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">John
      Buchanan</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Penny
      Hughes</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Anne
      Lauvergeon</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      David Scholey</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Professor
      J&uuml;rgen Schrempp</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luc
      Vandevelde</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)(7)</sup></font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip
      Yea</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
      <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committee Chairman.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter Bamford ceased to be a member of the Board on 7 March 2006.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy Halford joined the Board on 26 July 2005 and from then until 31 March 2006 there were six Board meetings.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken Hydon and Sir David Scholey retired from the Board on conclusion of the AGM on 26 July 2005.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dr Michael Boskin succeeded Paul Hazen as Chairman of the Audit Committee during the year.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Anne Lauvergeon joined the Board on 1 November 2005 and from then until 31 March 2006 there were four Board meetings.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luc Vandevelde succeeded Penny Hughes as Chairman of the Remuneration Committee during the year.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip Yea joined the Board on 1 September 2005 and from then until 31 March 2006 there were six Board meetings.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to regular Board meetings, there are a number of other meetings to deal with specific matters. Directors unable to attend a Board meeting because of another engagement, as
was the case for a number of directors in the year, are nevertheless provided with all the papers and information relevant for such meeting and are able to discuss issues arising in the meeting with the Chairman or the Chief Executive.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Re-election
  of Directors</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Although not
  required by the Articles, in the interests of good corporate governance, the
  directors have resolved that they will all submit themselves for annual re-election
  at the AGM. Accordingly, at the AGM to be held on 25 July 2006, other than Lord
  MacLaurin, Sir Julian Horn-Smith, Paul Hazen and Penny Hughes who are retiring
  at the conclusion of the AGM, all the directors will be retiring and, being
  eligible and on the recommendation of the Nominations and Governance Committee,
  will offer themselves for re-election.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
  evaluation</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
  evaluation of the Board, its Committees and individual directors takes place
  on an annual basis and is conducted within the terms of reference of the Nominations
  and Governance Committee with the aim of improving individual contributions,
  the effectiveness of the Board and its Committees and the Group&#146;s performance.
  The Chairman leads the assessment of the Chief Executive and the non-executive
  directors, the Chief Executive undertakes the performance reviews for the executive
  directors and the senior independent director conducts the review of the performance
  of the Chairman. Each Board Committee undertakes a review of its own work and,
  in relation to the performance of the Board, each director is required to complete
  a comprehensive questionnaire, the results of which are analysed and discussed
  by the Nominations and Governance Committee prior to the presentation of recommendations
  to the Board. The evaluation process is designed to cover Board processes, the
  structure and capability of the Board, strategic alignment, Board dynamics and
  the skills brought to the Board by each director. A series of questionnaires
  has also been developed to facilitate the evaluation processes for each Board
  Committee.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">54</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></TD>
  </TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p55"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The evaluations found the performance of each director to be effective and concluded that the Board provides the effective leadership and control required for a listed company. The
Nominations and Governance Committee confirmed to the Board that the contributions made by the directors offering themselves for re-election at the AGM in July 2006 continued to be effective and the Company should support their re-election.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Information
  and professional development</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Each member
  of the Board has immediate access to a dedicated online team room and can access
  monthly information including actual financial results, reports from the executive
  directors in respect of their areas of responsibility and the Chief Executive&#146;s
  report which deals, amongst other things, with investor relations, giving Board
  members an opportunity to develop an understanding of the views of major investors.
  These matters are discussed at each Board meeting. From time to time, the Board
  receives detailed presentations from non-Board members on matters of significance
  or on new opportunities for the Group. Financial plans, including budgets and
  forecasts, are regularly discussed at Board meetings. The non-executive directors
  periodically visit different parts of the Group and are provided with briefings
  and information to assist them in performing their duties. The non-executive
  directors and the Chairman regularly meet without executives present.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board is confident that all its members have the knowledge, ability and experience to perform the functions required of a director of a listed company. On appointment, all
directors are provided with appropriate training and guidance as to their duties, responsibilities and liabilities as a director of a public and listed company and also have the opportunity to discuss organisational, operational and administrative
matters with the Chairman, the Chief Executive and the Company Secretary. When considered necessary, more formal training is provided.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Matters
  for the Board</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  has a formal schedule of matters specifically referred to it for decision, including:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
      approval of Group commercial strategy;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      strategic and long-term plans;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">major
      capital projects;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">approving
      annual budgets and operating plans;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">devising
      and reviewing the Group&#146;s corporate governance structure;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      financial structure (including tax and treasury policy);</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">approving
      statutory accounts and shareholder communications;</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      risk management; and</font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">material
      contracts not in the ordinary course of business.</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This schedule
  is reviewed periodically. It was last formally reviewed and updated by the Nominations
  and Governance Committee in January 2004 and its proposals were subsequently
  approved by the Board. Its currency and continued validity were assessed as
  part of the performance evaluations conducted in the 2006 financial year described
  earlier in this Report. The agendas for Board meetings are initially developed
  by the Chief Executive and the Company Secretary and are finalised by the Chairman.
  The directors have access to the advice and services of the Company Secretary
  and, both as a group and individually, are entitled to take independent professional
  advice at the cost of the Company on matters relating to the proper discharge
  of their responsibilities.</font> </p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive
  Management</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The executive
  directors, together with certain other Group functional heads and regional chief
  executives, meet 12 times a year as the Executive Committee under the chairmanship
  of the Chief Executive. The Executive Committee is responsible for the day-to-day
  management of the Group&#146;s businesses, the overall financial performance
  of the Group in fulfilment of strategy, plans and budgets and Group capital
  structure and funding. It also reviews major acquisitions and disposals.</font>
</p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Committees
  of the Board</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The standing
  Board Committees are the Audit Committee, the Nominations and Governance Committee and the Remuneration Committee. The composition and terms of reference of these committees are published on the Group&#146;s website at www.vodafone.com. The
Secretary to these standing Board Committees is the Company Secretary or his nominee.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Audit
  Committee</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Audit
  Committee is comprised of financially literate members having the necessary
  ability and experience to understand financial statements. Solely for the purpose
  of fulfilling the requirements of the Sarbanes-Oxley Act and the Combined Code,
  the Board</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">has
  designated John Buchanan, who is an independent non-executive director, satisfying
  the independence requirements of Rule 10A-3 of the US Securities Exchange Act
  1934, as its financial expert on the Audit Committee. Further details of John
  Buchanan can be found in &#147;Board of Directors and Group Management&#148;.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under its terms of reference, the Audit Committee is required, amongst other things, to oversee the relationship with the external auditors, to review the Company&#146;s preliminary
results announcement, interim results and annual financial statements, to monitor compliance with statutory and listing requirements for any exchange on which the Company&#146;s shares are quoted, to review the scope, extent and effectiveness of the
activity of the Group Internal Audit Department, to engage independent advisers as it determines is necessary and to perform investigations.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Audit Committee reports to the Board on the quality and acceptability of the Company&#146;s accounting policies and practices, including without limitation, critical accounting
policies and practices. The Audit Committee also plays an active role in monitoring the Company&#146;s compliance efforts for section 404 of the Sarbanes-Oxley Act and receives progress updates at each of its meetings as well as a bi-annual status
presentation from the Programme Management Office.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At least twice a year, the Audit Committee meets separately with the external auditors and the Group Audit Director without management being present. Further details on the oversight
of the relationships with the external auditors can be found under &#147;Auditors&#148; and the &#147;Report from the Audit Committee&#148; which are set out on page 57.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Nominations
  and Governance Committee</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Nominations
  and Governance Committee, which provides a formal and transparent procedure
  for the appointment of new directors to the Board, generally engages external
  consultants to advise on prospective Board appointees. This year, the Committee
  recommended the appointment of three further non-executive directors. Detailed
  role profiles were agreed by the Committee before external search consultants
  were engaged to prepare a shortlist of potentially suitable candidates. Only
  after a rigorous interview process were the appointments recommended to the
  Board.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Committee also reviewed the Group&#146;s succession plans, directed the performance evaluations described earlier in this Annual Report, discussed matters of corporate governance
and assessed the independence of non-executive directors prior to reporting to the Board.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Remuneration
  Committee</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Remuneration
  Committee is responsible to the Board for the assessment and recommendation
  of policy on executive remuneration and packages for individual executive directors.
  The Committee has regular private sessions without executive directors present.
  Further information on the Committee&#146;s activities is contained in the &#147;Board&#146;s
  Report to Shareholders on Directors&#146; Remuneration&#148;.</font> </p>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Statement
  on Internal Control </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  Introduction</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  has established procedures that implement in full the Turnbull Guidance, &#147;Internal
  Control: Guidance for Directors on the Combined Code&#148;, for the year under
  review and to the date of approval of the Annual Report. These procedures, which
  are subject to regular review, provide an ongoing process for identifying, evaluating
  and managing the significant risks faced by the Group.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Responsibility</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  has overall responsibility for the system of internal control. A sound system
  of internal control is designed to manage rather than eliminate the risk of
  failure to achieve business objectives, and can only provide reasonable and
  not absolute assurance against material misstatement or loss. The process of
  managing the risks associated with social, environmental and ethical impacts
  is also discussed under &#147;Corporate Responsibility and Environmental Issues&#148;,
  on pages 59 to 60.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Control
  structure</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
  sets the policy on internal control that is implemented by management. This
  is achieved through a clearly defined operating structure with lines of responsibility
  and delegated authority. The Executive Committee, chaired by the Chief Executive,
  manages this on a day-to-day basis.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s brand essence, which encapsulates the Group&#146;s commitment to integrity and continuous improvement, in combination with the Group&#146;s Business Principles, sets
the tone of the Group and reflects the control consciousness of management.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Written policies and procedures have been issued which clearly define the limits of delegated authority and provide a framework for management to deal with areas of</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p56"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p><font size="3">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Corporate Governance<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<div style="float: left; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">significant business risk. These policies and procedures are reviewed and, where necessary, updated at Executive Committee meetings.</font>
</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Control Environment<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  operating procedures include a comprehensive system for reporting information
  to the directors. This system is properly documented and regularly reviewed.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Budgets are prepared by subsidiary management and subject to review by both regional
management and the directors. Forecasts are revised on a quarterly basis and
compared against budget. When setting budgets and forecasts, management identifies,
evaluates and reports on the potential significant business risks.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Executive Committee and the Board review management reports on the financial
results and key operating statistics.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Emphasis is placed
on the quality and abilities of the Group&#146;s employees with continuing education,
training and development actively encouraged through a wide variety of schemes
and programmes. The Group has adopted a set of values to act as a framework for
its people to exercise judgement and make decisions on a consistent basis.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Directors are appointed to associated undertakings and joint ventures and attend
the board meetings and review the key financial information of those undertakings.
Clear guidance is given to those directors on the preparation that should take
place before these board meetings and their activity at the board meeting. It
is the Group&#146;s policy, where possible, that its auditors are appointed as
auditors of associated
companies and joint ventures.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The acquisition of any business requires a rigorous analysis of the financial
implications of the acquisition and key performance figures. A sensitivity analysis
takes place of the key assumptions made in the analysis. Post investment appraisals
of the Group&#146;s
investments are conducted on a periodic and timely basis.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Board reviews a half-yearly report detailing any significant legal actions
faced by Group companies.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Executive Committee monitors legal, environmental and regulatory matters
and approves appropriate responses or amendments to existing policy.</font></p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Monitoring and review activities<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There
are clear processes for monitoring the system of internal control and reporting
any significant control failings or weaknesses together with details of corrective
action.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A formal annual confirmation is provided by the chief executive officer and chief
financial officer of each Group company certifying the operation of their control
systems and highlighting any weaknesses. Regional management, the Audit Committee
and the Board review the results of this confirmation.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Chief Executive and the Chief Financial Officer undertake a review of the
quality and timeliness of disclosures that includes formal annual meetings with
the operating company or
regional chief executives and the Disclosure Committee.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group Internal Audit Department, reporting directly to the Audit Committee,
undertakes periodic examination of business processes on a risk basis and reports
on controls
throughout the Group.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Reports from the external
auditors, Deloitte &amp; Touche LLP, on certain internal controls and relevant
financial reporting matters, are presented to the Audit Committee and
management.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Review of Effectiveness<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
directors, the Chief Executive and the Chief Financial Officer consider that
any controls and procedures, no matter how well designed and operated, can provide
only reasonable and not absolute assurance of achieving the desired control objectives.
The Group&#146;s management is required to apply judgement in evaluating the
risks facing the Group in achieving its objectives, in determining the risks
that are considered acceptable to bear, in assessing the likelihood of the risks
concerned materialising, in identifying the company&#146;s ability to reduce
the incidence and impact on the business of risks that do materialise and in
ensuring the costs of operating particular controls are proportionate to the
benefit.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The directors, the Chief Executive and the Chief Financial Officer confirm that
they have reviewed the effectiveness of the system of internal control and the
disclosure controls and procedures through the monitoring process set out above,
which as noted separately on page 55 does not include any statement of compliance
with section 404</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
of the Sarbanes-Oxley Act, and are not aware of any significant weakness or deficiency
in the Group&#146;s system of internal control. The directors, the Chief Executive
and the Chief Financial Officer have evaluated the effectiveness of the disclosure
controls and procedures and, based on that evaluation, have concluded that the
disclosure controls and procedures are effective as at the end of the period
covered by
this Annual
Report.</font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> During
    the period covered by this Annual Report, there were no changes in the Company&#146;s
    internal control over financial reporting that have materially affected or
    are reasonably likely to materially affect the effectiveness of the internal
    controls over financial reporting.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Relations with Shareholders<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company is committed to communicating its strategy and activities clearly to
its shareholders and, to that end, maintains an active dialogue with investors
through a planned programme of investor relations activities. The investor relations
programme includes formal presentations of full year and interim results and
quarterly statements on key performance indicators. The Company holds briefing
meetings with its major institutional shareholders in the UK, the US and in Continental
Europe, after the interim results and preliminary announcement, to ensure that
the investing
community receives a balanced and complete view of the Group&#146;s performance
and the issues faced by the Group. Telecommunications analysts are invited to
presentations of the financial results and senior executives across the business
attend relevant meetings and conferences throughout the year. During the year,
the Company hosts investors and analysts sessions at which senior management
from its largest operating subsidiaries, its largest joint venture and certain
associated undertakings deliver presentations which provide an overview of each
of the individual businesses. The Company, through its Investor Relations team,
responds to enquiries from shareholders. The Chief Executive and the Chief Financial
Officer meet regularly with institutional investors and analysts, who also have
access to the Chairman
if they so
require, to discuss business performance.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The principal communication with private investors is through the provision of
the Annual Review and Summary Financial Statement, the interim results and the
AGM, an occasion which is attended
by all the Company&#146;s directors and at which all shareholders present are
given the opportunity to question the Chairman and the Board as well as the Chairmen
of the Audit, Remuneration and Nominations and Governance Committees. A summary
presentation of results and development plans is also given by the Chairman at
the AGM before dealing with the formal business of the meeting. The AGM is broadcast
live on the Group&#146;s website, www.vodafone.com, and a recording of the webcast
can subsequently be viewed on the website. All substantive resolutions at the
Company&#146;s AGMs are decided on a poll. The poll is conducted by the Company&#146;s
Registrars and scrutinised by Electoral Reform Services. The proxy votes cast
in relation to all resolutions are disclosed to those in attendance at the meeting
and the results of the poll are published on the Company&#146;s website and announced
via the regulatory news service. Financial and other information is made available
on the Company&#146;s website, www.vodafone.com, which is regularly
updated.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Political Donations<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
the AGM on 26 July
2005, the Board sought and obtained shareholders&#146; approval to enable the
Group to make donations to EU Political Organisations or incur EU Political Expenditure,
under the relevant provisions of the Political Parties, Elections and Referendums
Act 2000 (&#147;the Act&#148;). The approval given restricted such expenditure
to an aggregate limit of &pound;100,000 in the period of 12 months following
the date of the AGM.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group has made no political donations during the year.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
At this year&#146;s AGM, to be held on 25 July 2006, the directors propose to
seek a renewal of shareholders&#146; approval for a period of three years (until
the AGM in 2009). The amount of the approval for each year until the AGM in 2009
will again be restricted to an aggregate amount of &pound;100,000 (&pound;50,000
in respect of donations to EU Political Organisations and &pound;50,000 in respect
of EU Political
Expenditure).</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Although the directors
are seeking shareholders&#146; approval for the next three years, as with previous
annual approvals, the Group has no intention of changing its current policy and
practice of not making political donations and will not do so without the specific
endorsement of shareholders. The Board seeks the approval on a precautionary
basis, to avoid any possibility of unintentionally breaching the Act.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Directors&#146; Indemnities<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Companies (Audit Investigations and Community Enterprise) Act 2004 came into
force on 6 April 2005 and, amongst other things, changed the provisions of Section
310 of the Companies Act 1985 to give companies the power to extend indemnities
to directors against liability to third parties (excluding criminal and regulatory
penalties)
and to pay directors&#146; legal costs as incurred provided that they are reimbursed
to the Company if the individual is convicted or, in an action brought by the
Company, judgment is given against the director. Accordingly, the Company sought
and obtained</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">56</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p57"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholder approval at the AGM in July 2005 to amend its Memorandum and Articles of Association to give it authority to provide funding for directors&#146; defence costs. Following
that approval, the Company indemnified its directors and will indemnify new directors to the extent permitted by legislation.</font>
</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Auditors<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Following
a recommendation by the Audit Committee and, in accordance with section 384 of
the Companies Act 1985, a resolution proposing the re-appointment of Deloitte &amp; Touche
LLP
as auditors to the Company will be put to the AGM.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In their
    assessment of the independence of the auditors and in accordance with the
    US Independence Standards Board Standard No. 1, &#147;Independence Discussions with Audit
Committees&#148;, the Audit Committee receives in writing details of relationships between Deloitte &amp; Touche
LLP and the Company that may have a bearing on their independence and receives
confirmation that they are independent of the Company within the meaning of the
securities laws administered by the SEC.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition, the Audit Committee pre-approves the audit fee after a review of both the level of the audit fee against other comparable companies, including those in the</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">telecommunications industry, and the level and nature of non-audit fees, as part of its review of the adequacy and objectivity of the audit process.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In a further
    measure to ensure auditor independence is not compromised, policies have
    been adopted to provide for the pre-approval by the Audit Committee of all
    permitted non-audit
services by Deloitte &amp; Touche LLP. Should there be an immediate requirement for permitted non-audit services to be provided by Deloitte &amp; Touche
LLP which have not been pre-approved by the Audit Committee, the policies provide
that the Group Audit Director will consult with the Chairman of the Audit Committee
for pre-approval.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition
    to their statutory duties, Deloitte &amp; Touche LLP are also employed where,
    as a result of their position as auditors, they either must, or are best
    placed to, perform the work in question. This is primarily work in relation
    to matters such as shareholder circulars, Group borrowings, regulatory filings
    and business acquisitions and disposals. Other work is awarded on the basis
    of competitive tender.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
    year, Deloitte &amp; Touche LLP and its affiliates charged the Group&#146;s subsidiary undertakings &pound;4 million (2005: &pound;4 million) for audit services and a
further &pound;4 million (2005: &pound;3 million) for non-audit assignments.
An analysis of these fees can be found in note 4 to the Consolidated Financial
Statements.</font></p>
</div><br clear="all">
<hr noshade width="100%" size="2" color="f02015">
<div style="float: left; width: 48%">

  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report
    from the Audit Committee</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
composition of the Audit Committee is shown in the table on page 54 and its terms
of
    reference are discussed under &#147;Committees of the Board &#150; The Audit
Committee&#148;.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the year ended 31 March 2006, the principal activities of the Committee were as follows:</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial statements<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Committee considered reports from the Chief Financial Officer and the Group Financial
    Controller on the half-year and annual financial statements. It also considered
    reports from
the external auditors, Deloitte &amp; Touche LLP, on the scope and outcome of
the annual audit.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The financial statements were reviewed in the light of these reports and the results of that review reported to the Board.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk management and internal control<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Committee reviewed the process by which the Group evaluated its control environment,
    its risk assessment process and the way in which significant business risks
    were managed. It
also considered the Group Audit department&#146;s reports on the effectiveness
of internal controls, significant frauds and any fraud that involved management
or employees with a significant role in internal controls.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Committee also reviewed and approved arrangements by which staff could, in confidence, raise concerns about possible improprieties in matters of financial reporting or other
matters. This was achieved through using existing reporting procedures and a web site with a dedicated anonymous email feature.</font></p>
</div>
<div style="float: right; width: 48%">

<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
External auditors<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Committee reviewed the letter from Deloitte &amp; Touche LLP confirming their independence and objectivity. It also reviewed and pre-approved the scope of non-audit services
provided by Deloitte &amp; Touche LLP to ensure that there was no impairment
of independence.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Committee
    pre-approved the scope and fees for audit services provided by Deloitte &amp; Touche
    LLP and confirmed the wording of the recommendations put by the Board to
    the
shareholders on the appointment and retention of the external auditors.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Private
    meetings were held with Deloitte &amp; Touche LLP to ensure that there were
    no restrictions on the scope of their audit and to discuss any items the
    auditors did not wish to
raise with management present.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Internal audit<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Committee engaged in discussion and review of the Group Audit Department&#146;s
audit plan for the year, together with its resource requirements. Private meetings
were held with
the Group Audit Director.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audit Committee effectiveness<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Audit Committee conducts a formal review of its effectiveness annually and concluded this year that it was effective and able to fulfil its terms of reference.</font>
</p>
<p>
<img src="b826353-20fx59x1.jpg" border=0>
</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Dr Michael Boskin<br>
</font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>On
behalf of the Audit Committee</b>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p58"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Employees</font></b></p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone employs approximately 60,000 people worldwide, with a goal to recruit, develop and retain the most talented, motivated people that are well aligned with the Vodafone brand
  essence. The Company aims to do this by providing a good, safe working environment, treating people with respect and offering attractive incentives and opportunities. Training and development programmes help employees to develop their skills and
  experience and to reach their full potential, benefiting themselves and the Company.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employee Involvement<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Board&#146;s aim is to ensure that Vodafone people understand the Group&#146;s
    strategic goals and the mutual obligations of working in a high performing,
    values-based
organisation.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone&#146;s values continue to provide a common way of doing things and are implicit in all that the Group does for and with its shareholders, customers and employees. During the
year, Vodafone launched a major employee engagement initiative to bring alive the essence of the Vodafone brand. &#145;Red, Rock Solid, Restless&#146; is
the cornerstone to changing the culture of the Group by inspiring the behaviour
of employees in
their interactions with customers and other stakeholders.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Board
    places a high priority on effective employee communications to create a dialogue
    with the Group&#146;s people. In addition to the more traditional channels, the Group
increasingly uses its own products and services, such as SMS and audio based messaging, and is currently trialling 3G video based internal communications media in some local markets. This is the natural next step in the evolution of VTV, the
Group&#146;s successful intranet based business television service.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Chief
    Executive and other members of the executive management team continue to
    host the &#147;Talkabout&#148; programme, which aims to visit each of the Group&#146;s local
operating companies every year. In the &#147;Talkabout&#148; sessions, the executive team use the opportunity to discuss the Group&#146;s
strategic goals with as wide an audience of Vodafone people as possible, listening
to their views and talking about the issues that matter most to them, as well
as exchanging ideas about how Vodafone can serve its customers as a single, global
team.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All of these initiatives are supported and enhanced by a comprehensive range of award winning in-house publications for effectively sharing information with employees on key
performance indicators for the business. The Vodafone intranet was recently included by Nielsen Norman Research in their authoritative list as one of the ten best intranets in the world.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone&#146;s success is driven by the passion and effort of the Group&#146;s employees. In return, Vodafone values employees&#146; opinions
    on improving the performance of the Group. Within European subsidiaries,
    employee representatives meet annually with members of the executive management
    team in the Vodafone European Employee Consultative Council to discuss the
    performance and prospects of the Group and significant
trans-national issues.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In 2005, Vodafone carried out its second biennial Employee Survey to measure the levels of employee satisfaction and engagement. 89% of employees from 17 countries, including Japan,
took part to inform the Company on its progression on the key issues highlighted by the first survey in 2003.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The results
    showed that Vodafone employees had responded more positively in 2005 than
    in 2003. Specific results indicated that the overwhelming majority of employees
    are proud to work
for Vodafone, understand the importance of Vodafone&#146;s values, know the results expected of them in their jobs and have a good understanding of Vodafone&#146;s strategic goals and priorities. The number of employees agreeing with the statement
&#147;I am proud to work for Vodafone&#148; was equal to the high performance norm for companies on the Fortune list of &#147;Most Admired Companies&#148;.</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone is focused on continually improving and, as a result, the Company has identified three areas to be addressed through co-ordinated global and local action:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To
       take a genuine interest in employees and their development, by taking
       a more proactive approach to developing employees, with a specific emphasis
       on coaching and feedback. This area will be supported by the global launch
       of a performance management process in the next financial year and the
       launch of selected functional &#145;Academies&#146; which focus on the
       professional and skills development offered
to employees;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To
       improve the Group&#146;s understanding of the underlying customer focus issues in each market and identify improvements in the service offered. Meeting
customers&#146; requirements remains at the heart of the business and will continue
to differentiate Vodafone from our competition; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To develop practical global frameworks and guidelines to help employees effectively manage change within the business.</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The next Employee Survey is scheduled to take place in the 2007 financial year.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Employment Policies<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s employment policies are consistent with the principles of the United Nations Universal Declaration of Human Rights and the International Labour Organisation Core
Conventions and are developed to reflect local legal, cultural and employment requirements. High standards are maintained wherever the Group operates, as Vodafone aims to ensure that the Group is recognised as an employer of choice. Employees at all
levels and in all companies are encouraged to make the greatest possible contribution to the Group&#146;s
success. The Group considers its employee relations to be good.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Equal Opportunities<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone does not condone unfair treatment of any kind and operates an equal opportunities policy for all aspects of employment and advancement, regardless of race, nationality, sex,
age, marital status, disability or religious or political belief. In practice, this means that the Group is able to select the best people available for positions on the basis of merit and capability, making the most effective use of the talents and
experience of people in the business, providing them with the opportunity to develop and realise their potential.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Disabled<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
directors are conscious of the special difficulties experienced by people with
disabilities.
    Every effort is made to ensure ready access to the Group&#146;s facilities
    and services and a range of products has been developed for people with special
    needs. In addition, disabled people are assured of full and fair consideration
    for all vacancies for which they offer themselves as suitable candidates
    and efforts are made
to meet their special needs, particularly in relation to access and mobility.
    Where possible, modifications to workplaces have been made to provide access
    and, therefore, job opportunities for the disabled. Every effort is made
    to continue the employment of people who become disabled via the provision
    of additional facilities, job design and the provision of appropriate training.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Health, Safety and Wellbeing<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
health, safety and wellbeing of the Group&#146;s customers, employees and others
    who could be affected by its activities are of paramount importance to Vodafone
    and the Group
applies rigorous standards to all of its operations.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The health
    and safety management in each operating company is audited annually and the
    results are submitted in a report for discussion by the Board. The Group&#146;s
    annual global health and safety audit has shown a consistent rise in scores
    every year since inception in 2002. New standards, policies and a health
    and safety management system have been implemented, with an increase in consultation,
    participation and best
practice sharing by health and safety professionals from the operating companies.
    These will be further developed in the next financial year.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p59"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Corporate Responsibility and Environmental Issues</font></b>
</p>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Responsibility</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
sees corporate responsibility (&#147;CR&#148;) as the process of understanding
the expectations of stakeholders in the Group and taking appropriate action to
meet those expectations where they are realistic and legitimate. Stakeholders
include customers, investors, employees, suppliers, the communities where the
Group operates and where networks are based, governments and regulators and representatives
of civil
society.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
CR is relevant across all aspects of business strategy and is encapsulated in
the Group&#146;s strategic goal of being a responsible business. The Executive
Committee, chaired by the Chief Executive, receives regular information on CR
and the Director of Corporate Responsibility provides an annual report to the
Board. All mobile operating companies have a representative on their management
boards with responsibility for CR. For purposes of this section of the Annual
Report, all mobile operating companies refers to the Group&#146;s mobile operating
subsidiaries and the Group&#146;s joint venture in Italy, with the exception
of the newly acquired operations in Czech Republic and Romania and the Swedish
operations which were disposed of in the year. The CR impact of the Japanese
operations has been included in the information presented in this section, reflecting
the Group&#146;s responsibility for its impact throughout the 2006 financial
year. Systems for data collection on corporate responsibility and environmental
issues are being put in place for the 2007 financial year for the Czech Republic
and Romania.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
CR is at the heart
of Vodafone&#146;s values and is clearly linked to one of the Group&#146;s four
passions, Passion for the world around us. Vodafone&#146;s approach to business
is underpinned by the Business Principles which cover, amongst other things,
environment, employees, individual conduct and community and society. The Business
Principles are available on www.vodafone.com/responsibility/businessprinciples
and are communicated to employees in a number of ways, including induction processes,
websites and briefings. In the 2006 financial year, CR matters were included
within the Group&#146;s
development programme for directors and senior managers.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone aims to integrate CR into the business and this is being reflected in
governance, policy, process and reporting. For example, CR is integrated into
Vodafone&#146;s risk management processes such as the formal annual confirmation
provided by each mobile operating company detailing the operation of their controls
system, as
outlined on page 55.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
CR performance is closely monitored and reports are provided to most mobile operating
company boards on a regular basis. This has driven demonstrable performance improvement
and is
valuable in benchmarking.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
These processes are supported by stakeholder engagement, which seeks to provide
a clear understanding of expectations of performance. The Group engages with
stakeholders in a variety of different ways. For example, during the financial
year, meetings relating to CR issues were held with 15 investors; a quantitative
perception survey was carried out with 146 opinion leaders (including academics,
non governmental organisations and policy makers) in 11 European countries and
face to face meetings were held with non governmental organisations and opinion
formers. This process of stakeholder engagement helps to ensure Vodafone is aware
of the issues relevant to the business and that it is focused on the priority
areas. This is covered in more detail
in the Company&#146;s CR Report for the 2006 financial year, which can be found
at www.vodafone.com/responsibility.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone has maintained
last year&#146;s level of independent assessment and assurance of the CR programme
and performance data. The scope of work for the Group&#146;s auditors includes
a review of certain environmental, community and health and safety performance
data across the business, the progress achieved against commitments set in the
2005 financial year, as well as to review the management and reporting of CR
matters against the requirements of the assurance standard AA1000 AS, issued
by AccountAbility. This identifies, in all material respects, whether reporting
reflects the material CR issues of the Group as defined by the standard, whether
processes are in place to ensure a complete understanding of the issues, and
whether Vodafone is responding adequately to identified stakeholders&#146; expectations.
The assurance statement is published in the Company&#146;s
CR Report.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Over the last year,
progress has been made in responding to the Group&#146;s stakeholders&#146; expectations.
The most significant developments are summarised below and further details are
provided in the Company&#146;s CR Report and on www.vodafone.com/responsibility.
In addition to the Company&#146;s CR Report, ten mobile operating subsidiaries
have produced their own CR reports.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone is included in the FTSE4Good and Dow Jones Sustainability Index.
</font></p>
</div>
<div style="float: right; width:48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Socially inclusive products</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
  is working to improve people&#146;s access to mobile communications and is developing products and services that support health and personal security and use secure mobile
messaging to facilitate micro-finance in developing countries. In February 2006, Vodafone announced a commitment of &pound;5 million over a period of four years to the Group&#146;s
Social Investment Fund. The fund facilitates the development of commercially
viable products and services with high social value, particularly those that
increase accessibility. Examples of initiatives during the year include:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Vodafone Speaking Phone with screen reader software for the blind and visually impaired, has been fully launched in six markets and test launched in one other.
An assessment of the availability of handsets with accessibility features and an investigation into the compatibility of hearing aids and mobile phones have been completed.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A mobile micro-finance platform called M-pesa has been trialled in Kenya, with support from the UK Department for International Development. The payment platform
is being used to enable customers without local bank infrastructure to move money between accounts and to make remittances.</font></td>
</tr>
</table>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Parental controls<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Two mobile operating companies have implemented parental control tools to enable customers to protect their children by restricting access to adult oriented wap and internet sites. A
further three mobile operating companies have launched access controls for Vodafone live!</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Group guidelines on premium rate subscription services have been developed. The
guidelines recommend that mobile operating companies require providers of premium
rate subscription services to advertise clearly and send a confirmation text
to customers when they sign up explaining applicable charges and clearly stating
how to opt out.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Earning the trust of customers<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
  values its long-term reputation with customers. Several issues are key to maintaining
  customers&#146; trust, including the clarity of the pricing, marketing communications
and the way Vodafone handles the confidentiality of customers&#146; communications
and personal information.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
During the year, two major initiatives that provide clearer and easier to understand
costs for customers were launched:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
       Passport offers clearer pricing for international roaming, with a one
       off connection fee per call. Vodafone Passport won the 2006 GSM Association
       award
for &#145;Best Roaming Product or Service&#146;. To date, over 6 million customers
have subscribed to Vodafone Passport.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the Vodafone Mobile Connect data card tariffs, which offer high speed internet connection to laptops, a monthly roaming bundle was developed to make roaming
costs more predictable.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In November 2005, Vodafone adopted a group wide privacy policy that covers the
collection, storage
and use of our customers&#146; personal information. The policy is overseen by
a Privacy Steering Group, a cross functional body made up of senior management,
and requires the appointment of a Privacy Officer by each Vodafone mobile operating
company with day-to-day responsibility for compliance. An overview of Vodafone&#146;s
Privacy Policy is available at www.vodafone.com/responsibility.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The programme of responsible marketing and advertising continued, shifting the
focus from control to awareness raising. Upheld complaints received by advertising
regulatory bodies were monitored throughout the markets. Most of these related
to price claims and clarity.
</font></p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Supply chain<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group continues to implement Vodafone&#146;s Code of Ethical Purchasing (&#147;CEP&#148;),
  which sets out environmental and labour standards for suppliers.</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate
       responsibility is one of six pillars in Vodafone&#146;s overall Supplier
    Performance Management system.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Over 80% of purchasing managers and staff from across the Group have received training on the CEP.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A risk based approach has been introduced across the Group to prioritise which suppliers require further assessment for compliance against the CEP. In the 2006
financial year, over 600 suppliers have been reviewed for risk and over 80 suppliers have completed a self assessment process. 15 site evaluations have been completed.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Vodafone continues to work with other information and communication technology
companies to develop a common approach to managing CR in the supply chain.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">59</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p60"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Corporate
      Responsibility and Environmental Issues</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<div style="float: left; width:48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Socio-economic potential of mobiles</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Following on from research published in the 2005 financial year on the broader impact of mobile telecommunications in Africa, the Group commissioned and published research into the
impact of mobile phones in healthcare. The study demonstrated how existing voice and text message applications could increase productivity, improve patient health and enable greater access to health services in the developed and developing world.
Further information is available at www.vodafone.com/healthcare.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Social investment<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Vodafone Group Foundation and family of local foundations have continued to implement a programme of grant making activity. In the 2006 financial year, the process of establishing
new local foundations in the Czech Republic and Albania was initiated.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
During the year ended 31 March 2006, the Company made cash charitable donations
of &pound;24.0 million to The Vodafone Group Foundation. In addition, Group operating
companies donated
a further &pound;10.0 million to local Vodafone Foundations and a further &pound;6.9
million directly to a variety of causes. These donations total &pound;40.9 million
and include donations of &pound;2.5 million made as required by the terms of
certain network operating licences. More details regarding the activities of
The Vodafone Group Foundation and local Vodafone Foundations can be found in
the Company&#146;s
CR Report for the 2006 financial year.
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Environmental Issues<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group continues to monitor and manage the impact of its activities on the environment and is committed to minimising adverse impacts in an appropriate manner. Over the last 12
months, progress has been made across a series of projects that address environmental issues, including mobile phones, masts and health; responsible network deployment; energy use and efficiency; and the reuse and recycling of equipment.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile phones, masts and health<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
  supports research, aligned to World Health Organisation (&#147;WHO&#148;) priorities,
  to resolve scientific uncertainty relating to mobile phones, masts and health,
  and is committed to reducing public concern by making objective information
  widely available to stakeholders and by engaging in open, transparent dialogue.</font><font size="2">
  </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In the 2006 financial year, the Group engaged with a wide range of external and
internal stakeholders through surveys, guidelines (consistent with WHO advice),
Vodafone websites and other existing forms of communications, to promote a consistent
and high level of understanding on the subject. Vodafone also led the industry
on the introduction of bodyworn testing of all handsets sold in Europe. This
involves testing exposure to RF (Radio Frequency) fields not only to the head
but to other parts of the body.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Please also refer to note 31 to the Consolidated Financial Statements for further
information.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Responsible network deployment</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone&#146;s mobile services rely on a network of base stations that transmit and receive calls. The Group recognises that network roll out can cause concern to communities,
usually about the visual impact of base stations or health issues concerning RF fields. This year, Vodafone was found in breach of planning regulations relating to 46 mast sitings. Fines levied by regulatory bodies or Courts in relation to offences
under environmental law or regulations were approximately &pound;63,000. To address
these challenges, Vodafone began implementing a Group policy and guidelines on
responsible network deployment. These set out consistent standards for all mobile
operating companies on legal compliance, environmental impact, RF emissions,
site planning and selection, communication and consultation, and landlord relationships.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Energy use and efficiency</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
consequence of the Group&#146;s business growth is increasing energy demand to run the network. This is Vodafone&#146;s most significant environmental impact and limiting the
Group&#146;s contribution to climate change is a priority. In partnership with
equipment manufacturers, Vodafone is improving the energy efficiency of the network
so that data and voice can be transmitted with greater efficiency. In the 2006
financial year:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Energy use increased 23% to 3,198 GWh, equating to 1.31 million tonnes of carbon dioxide.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There has been a 22% increase from the previous year in the amount of renewable energy used by the Group and this has resulted in 12% of total grid energy being
sourced from renewables. Vodafone has also trialled onsite renewable energy technologies including the use of hydrogen fuel cells, wind generators and solar power.</font></td>
</tr>
</table>
</div>
<div style="float: right; width:48%">
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reuse and recycling<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile phones, accessories and the networks on which they operate require upgrading, replacement and decommissioning. Whilst Vodafone does not manufacture mobile phones or equipment,
the Group is committed to working closely with suppliers to improve the sustainability of mobiles and network equipment. Waste management involves minimisation, reuse and recycling before waste disposal. The following were achieved during the
year:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.37 million phones have been collected for reuse and recycling and collection programmes are in place in 15 mobile operating companies.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Initiatives have been launched to raise awareness and encourage recycling. These include offering incentives for customers and promoting handset recycling with
corporate customers and employees.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97% of network equipment waste was sent for reuse or recycling.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
</table>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Environmental
        Performance Indicators</font> </td>
      <td width="2%" align="right">&nbsp;</td>
      <td width="12%" align="right">&nbsp;</td>
      <td width="2%" align="right">&nbsp;</td>
      <td width="12%" align="right">&nbsp;</td>
      <td width="2%">&nbsp;</td>
    </tr>
    <tr>
      <td><font size="2">&nbsp;</font></td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
      <td><font size="1"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup>&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number
          of mobile operating subsidiaries undertaking independent RF field monitoring</font></div></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b>&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></b>&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        energy use (GWh) (direct and indirect)</font></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,198</font></b></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,600</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        carbon dioxide emissions (millions of tonnes)</font></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.31</font></b></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.2</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%
        of energy sourced from renewables</font></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number
        of phones collected for reuse and</font></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;recycling
        (million)</font></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.37</font></b></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.27</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%
          network equipment waste sent for reuse or recycling</font></div></td>
      <td align="right">&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97</font></b></td>
      <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></b></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr valign="bottom">
      <td><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
  </table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
<tr>
   <td valign="top" width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These performance indicators were calculated using actual or estimated data collected by the Group&#146;s mobile operating companies. The data is sourced from
invoices, purchasing requisitions, direct data measurement and estimations where required. The carbon dioxide emissions figure is calculated using the Kwh/CO2 conversion factor for the electricity provided by the national grid and for other energy
sources in each operating company. The data collection and reporting process is within the assurance undertaken by Deloitte &amp; Touche LLP on the Company&#146;s CR Report. The data for the 2005 financial year excludes newly acquired operations in
the Czech Republic and Romania and operations in Sweden that were sold during 2006. It includes the Group&#146;s joint venture in Italy and the discontinued operation in Japan.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p61"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration</font></b></p>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Dear Shareholder<br>
</font></b><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Since
the introduction
of the current Executive Remuneration Policy in 2002 (the &#147;Policy&#148;),
the Remuneration Committee has conducted annual reviews to ensure that the Policy
continues to serve the Company and shareholders. Following my appointment as
Chairman of the Committee, we have undertaken a review again this year.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
As a result of this
year&#146;s review, the Remuneration Committee has concluded that the existing
Policy remains appropriate but wishes to make three minor changes. These are
as
follows:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the deferred bonus scheme will be extended to members of the Executive Committee based outside of the UK, and the mechanics amended in light of recent US tax
legislation;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">we have considered the weighting of performance shares and options within our long term incentives, and will place a greater weighting on performance shares for
2006 awards, thus increasing the emphasis on total shareholder return performance; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">dividends will be accrued on performance shares awarded from 2006 and transferred as shares on the vesting of awards, to increase the alignment of executive and
shareholder interests.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The key principles of the Policy, which are being maintained, are:
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the expected value of total remuneration will be benchmarked against the relevant market;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a high proportion of total remuneration will be delivered through performance related payments;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">performance measures will be balanced between absolute financial measures and sector comparative measures to achieve maximum alignment between executive and
shareholder objectives;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the majority of performance related remuneration will be provided in the form of equity; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">share ownership requirements will be applied to executive directors.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Committee continues to monitor how well incentive awards made in previous
years align with the Company&#146;s performance. The Policy continues to work
well and forecast rewards are commensurate with actual performance. I am confident
that the Policy continues to align executives&#146; interests with the interests
of shareholders, whilst enabling the Company to engage a high calibre team to
successfully lead the Company. I hope that we receive your support at the AGM
on 25 July 2006.
</font></p>
<p>
<img src="b826353-20fx63x1.jpg" border=0>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Luc Vandevelde</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Chairman
of the Remuneration Committee<br>
30 May 2006</b>
</font></p>
</div>
<div style="float: right; width:48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Remuneration Committee<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Remuneration Committee is comprised to exercise independent judgement and consists
only
  of independent non-executive directors. Luc Vandevelde (Chairman), Sir John
  Bond, Dr
Michael Boskin and Professor J&uuml;rgen Schrempp continue as members. Philip
Yea joined the Committee on 1 January 2006. The Chief Executive and Chairman
are invited to attend meetings of the Remuneration Committee, other than when
their own
remuneration is being discussed.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Remuneration Committee met on five occasions during the year. The Committee
appointed and received advice from Towers Perrin (market data and advice on market
practice and governance) and Kepler Associates (performance analysis and advice
on performance measures and market practice) and received advice from the Group
Human Resources Director and the Group Compensation and Benefits Director. The
advisers also provided advice to the Company on general human resource and compensation
related matters.
</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Remuneration Policy<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Policy was approved by shareholders in July 2002. The Policy is set out below:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp; </font></td>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp;</font></td>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="2%" bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#e8f6f8"><p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
          overriding objective of the Policy on incentives is to ensure that
          Vodafone is able to attract, retain and motivate executives of the
          highest calibre essential to the successful leadership and effective
          management of a global company at the leading edge of the telecommunications
          industry. To achieve this objective, Vodafone, from the context of
          its UK domicile, takes into account both the UK regulatory framework,
          including best practice in corporate governance, shareholder views,
          political opinion and the appropriate geographic and nationality basis
          for determining competitive remuneration, recognising that this may
          be subject to change over time as the business evolves. </font></p>
      <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
          total remuneration will be benchmarked against the relevant market.
          Vodafone is one of the largest companies in Europe and is a global
          business; Vodafone&#146;s policy will be to provide executive directors
          with remuneration generally at levels that are competitive with the
          largest companies in Europe. A high proportion of the total remuneration
          will be awarded through performance related remuneration, with phased
          delivery over the short, medium and long term. For executive directors,
          approximately 80% of the total expected remuneration will be performance
          related. Performance measures will be balanced between absolute financial
          measures and sector comparative measures to achieve maximum alignment
          between executive and shareholder objectives. </font></p>
      <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> All
          medium and long term incentives are delivered in the form of Vodafone
          shares and options. Executive directors are required to comply with
        share ownership guidelines. </font></p></td>
    <td width="2%" bgcolor="#e8f6f8">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp; </font></td>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp;</font></td>
    <td bgcolor="#e8f6f8"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The structure of remuneration for executive directors under the Policy (excluding
pensions) is illustrated below:
</font></p>
<p><img src="b826353-20fx63x2.jpg" border=0></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Policy&#146;s key objective is to ensure that there is a strong linkage between
pay and performance. This is achieved by approximately 80% of the total package
(excluding pensions) being delivered through performance-linked short, medium
and long term incentive plans. Therefore, the only guaranteed payment to executive
directors is their
base salary.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Remuneration Committee selects performance measures for incentive plans that
provide the greatest degree
of alignment with the Company&#146;s strategic goals and that are clear and transparent
to both directors and shareholders. The performance measures adopted incentivise
both operational performance and share price growth.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p62"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p> <font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board&#146;s
  Report to Shareholders on Directors&#146; Remuneration<br>
  </font></b></font><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font>
</p>
<div style="float: left; width: 48%">
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Each element of the reward package focuses on supporting different Company objectives, which are illustrated below:</font>
</p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
      <td bgcolor="#e8f6f8">&nbsp;</td>
      <td align="left" valign="top" bgcolor="#cfe7f0"><div align="center"></div></td>
      <td align="center" bgcolor="#cfe7f0"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purpose</font></td>
      <td align="center" bgcolor="#ccffff"><div align="center"></div></td>
      <td align="center" bgcolor="#ccffff"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
        Measure(s)</font></td>
      <td align="center" bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td colspan="5" bgcolor="#e8f6f8"> <hr noshade size=1 color="#f02015"></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Base
        salary</font></b></td>
      <td width="3%" align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td width="35%" valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reflects
        competitive market </font></td>
      <td width="3%" align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td width="35%" valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Individual
        contribution</font></td>
      <td width="2%" bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">level,
        role and individual </font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">achievement</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8">
        <hr noshade size=1 color="#f02015"></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#cfe7f0">
<hr noshade size=1 color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr noshade size=1 color="#f02015"></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Annual</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Motivates
        achievement of</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
        operating profit</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">deferred</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">annual
        business KPIs</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Free
        cash flow</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">share
        bonus</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provides
        incentive to co-invest</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        service revenue</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Motivates
        achievement of</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customer
        satisfaction</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">medium
        term KPIs </font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
        EPS growth on share</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aligns
        with shareholders</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">deferral</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8">
        <hr noshade size=1 color="#f02015"></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#cfe7f0">
<hr noshade size=1 color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr noshade size=1 color="#f02015"></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
        options</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentivise
        earnings growth</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
        EPS growth</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and
        share price growth</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aligns
        with shareholders</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8">
        <hr noshade size=1 color="#f02015"></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#cfe7f0">
<hr noshade size=1 color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr align="center" size=1 noshade color="#f02015"></td>
      <td valign="top" bgcolor="#ccffff">
<hr noshade size=1 color="#f02015"></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentivise
        share price and</font></td>
      <td align="center" valign="top" bgcolor="#ccffff">
        <div align="center"><font size="2">&nbsp;</font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Relative
        Total Shareholder</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">shares</font></b></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">dividend
        growth</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Return
        (&#147;TSR&#148;)</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top" bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
      <td align="left" valign="top" bgcolor="#cfe7f0">
      <div align="center"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></div></td>
      <td valign="top" bgcolor="#cfe7f0"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aligns
        with shareholders</font></td>
      <td valign="top" bgcolor="#ccffff">
<div align="center"><font size="2">&nbsp;</font></div></td>
      <td valign="top" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
      <td bgcolor="#ccffff">&nbsp;</td>
    </tr>
  </table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The principles of the Policy are cascaded, where appropriate, to executives below Board level as set out below:</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td bgcolor="#e8f6f8">&nbsp;</td>
    <td align="center" bgcolor="#ccffff">&nbsp;</td>
    <td align="center" bgcolor="#ccffff"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cascade
      of policy to Executive Committee</font></td>
    <td align="center" bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"> <hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Base
      salary</font></b></td>
    <td width="2%" align="center" bgcolor="#ccffff">&nbsp;</td>
    <td width="65%" align="center" bgcolor="#ccffff"> <div align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Set
        against national market</font></div></td>
    <td width="2%" align="center" bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"> <hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Annual
      Deferred</font></b></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Target
      bonus level competitive in local market,</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
      Bonus</font></b></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">payout
      conditional on business performance</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">relevant
      to individual executive</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8">&nbsp;</td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Opportunity
      to defer bonus to be extended to</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive
      Committee members based overseas</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
      2006</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"> <hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff"><hr noshade size=1 color="#f02015"></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Long
      Term Incentive</font></b></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Annual
      awards of performance shares and share</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
  <tr>
    <td bgcolor="#e8f6f8"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
    <td bgcolor="#ccffff"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">options
      with performance conditions</font></td>
    <td bgcolor="#ccffff">&nbsp;</td>
  </tr>
</table>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report
    on Executive Directors&#146; Remuneration for the 2006 <br>
    Financial Year and Subsequent Periods<br>
    </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
    remuneration levels</font> <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In accordance
    with the Policy, the Company benchmarks total remuneration levels against
    other large European domiciled companies, using externally provided pay data.
    Total remuneration for these purposes means the sum of base salary and short,
    medium and long term incentives. The European focus was selected because Europe
    continues to be Vodafone&#146;s major market and the Company is one of the
    top ten companies in Europe by market capitalisation. The competitive data
    is used as one input to determine the remuneration level of the Chief Executive
    and Board. The Committee also takes into account other factors, including
    personal and Company performance, in determining the target remuneration level.</font>
  </p>
  <p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Components
    of executive directors&#146; remuneration</font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive
    directors receive base salary, short and medium term incentive (annual deferred
    share bonus), long term incentives (performance shares and share options)
    and pension benefits. Vesting of all incentives is dependent on the achievement
    of performance targets that are set by the Remuneration Committee prior to
    the awards being granted.</font> </p>
  <p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Base
    salary</font></b><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Salaries
    are reviewed annually and adjustments may be made to reflect competitive national
    pay levels, the prevailing level of salary reviews of employees within the
    Group, changes in responsibilities and Group and individual performance. External
    remuneration consultants provide data about market salary levels and advise
    the Committee accordingly. Pension entitlements are based only on base salary.</font>
  </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Incentive
    awards<br>
    </font></b></font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Short
    and medium term incentive: annual deferred share bonus</font></b> <br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    purpose of the annual deferred share bonus is to focus and motivate executive
    directors to achieve annual business KPIs that will further the Company&#146;s
    medium term objectives. Awards made in July 2003 under the Vodafone Group
    Short Term Incentive Plan (&#147;STIP&#148;) vested in July 2005. Details
    of STIP awards are given in the table on page 66.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company
  has reviewed the current STIP in light of changes to US tax legislation and
  will make future awards under the Vodafone Global Incentive Plan Rules approved
  by shareholders in 2005. This will enable the plan to be operated for members
  of the Executive Committee based overseas. Whilst the mechanics of the plan
  will change, the quantum of awards will remain the same.</font> </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The STIP
  comprises two elements: a base award and an enhancement award. Release of both
  elements after three years is dependent upon the continued employment of the
  participant.</font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Base
    award</font></b><br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    base award is earned by achievement of one year KPI linked performance targets
    and is delivered in the form of shares. The target base award level for the
    2006 financial year was 100% of salary with a maximum of 200% of salary available
    for exceptional performance. From 2006, the base award will be deferred into
    shares, net of tax.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Remuneration
  Committee reviews and sets the base award performance targets on an annual basis,
  taking into account business strategy. The performance measures for the 2006
  financial year relate to adjusted operating profit, total service revenue, free
  cash flow and customer delight. Each element is weighted according to the responsibilities
  of the relevant director. For the Chief Executive, in the 2006 financial year,
  the adjusted operating profit target was 30% of the total, total service revenue
  35%, free cash flow 20% and customer satisfaction 15%, and the payout achieved
  was 118.7%. The targets are not disclosed, as they are commercially sensitive.
  For the 2007 financial year, no changes will be made to the performance measures
  or weightings. More information on Company performance against KPIs in the 2006
  financial year can be found in &#147;Key Performance Indicators&#148; on page
  29.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  may, at its discretion, pay a cash sum of up to the value of the base award
  in the event that an executive director declines the share award. In these circumstances,
  the executive director will not be eligible to receive the enhancement award
  or any cash alternative.</font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Enhancement
    award</font></b> <br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An
    enhancement award of 50% of the number of shares comprised in the pre-tax
    base award is earned by achievement of a subsequent two year EPS performance
    target following the initial twelve month period. For awards made in the 2006
    financial year, which will vest in July 2007, the performance measure related
    to growth in adjusted EPS. Three quarters of the enhancement award will vest
    for achievement of EPS growth of 11% rising to full vesting for achievement
    of EPS growth of 16% over the two year performance period.</font> </p>
  <p> <b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Long term
    incentives</font></b> <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Awards of
    performance shares and share options were made to executive directors following
    the 2005 AGM on 26 July 2005. The awards for the 2006 financial year will
    be also be made following the AGM.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Awards in
  the 2006 financial year were made under the Vodafone Group Plc 1999 Long Term
  Stock Incentive Plan. Awards of performance shares and options in the 2007 financial
  year will be made under the Vodafone Global Incentive Plan.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Awards are
  delivered in the form of ordinary shares of the Company. All awards are made
  under plans that incorporate dilution limits as set out in the Guidelines for
  Share Incentive Schemes published by the Association of British Insurers. The
  current estimated dilution from subsisting awards, including executive and all-employee
  share awards, is approximately 2.6% of the Company&#146;s share capital at 31
  March 2006 (2.4% as at 31 March 2005).</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance
    shares<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
    shares are awarded annually to executive directors. Vesting of the performance
    shares depends upon the Company&#146;s relative TSR performance. TSR measures
    the change in value of a share and reinvested dividends over the period of
    measurement. The Company&#146;s TSR performance is compared to that of other
    companies in the FTSE Global Telecommunications index as at the date of grant,
    over a three-year performance period.</font> </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the 2006
  financial year, the Chief Executive received an award of performance shares
  with a face value of two times base salary; the Deputy Chief Executive and other
  executive directors one and a half times their base salary.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
  shares will vest only if the Company ranks in the top half of the ranking table;
  maximum vesting will only occur if the Company is in the top 20%. Vesting is
  also conditional on underlying improvement in the performance of the Company.
  Awards will vest to the extent that the performance condition has been satisfied
  at the end of the three-year performance period. To the extent that the performance
  target is not met, the awards will be forfeited. The following chart shows the
  basis on which the performance shares will vest:</font> </p>
  </div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">62</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p63"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p><div style="float: left; width: 48%">
<p>
<img src="b826353-20fx65x1.jpg" border=0>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For awards
  made in the 2007 financial year, dividend equivalents will be awarded at vesting.
  Initial award levels will be adjusted to take into account the increased expected
  value of awards and the proportion of dividend equivalents transferred will
  reflect TSR performance achievement.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Previously
  disclosed performance share awards granted in the 2003 financial year vested
  in the 2006 financial year. Details are given in the table on page 67.</font>
</p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
    options</font></b><br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
    options are granted annually to executive directors. The exercise of share
    options is subject to the achievement of a performance condition set prior
    to grant. The Remuneration Committee determined that the most appropriate
    performance measure for awards relating to the 2006 financial year was absolute
    growth in adjusted EPS. One quarter of the option award will vest for achievement
    of EPS growth of 8% p.a. rising to full vesting for achievement of EPS growth
    of 16% p.a. over the performance period. In setting this target the Remuneration
    Committee has taken the internal long range plan and market expectations into
    account. The Remuneration Committee has decided that for the 2007 financial
    year grants, the performance range will be 5% &#150; 10% p.a. The following
    chart illustrates the basis on which share options granted in the 2006 financial
    year will vest:</font> </p>
<p>
<img src="b826353-20fx65x2.jpg" border=0>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
  have a ten year term and will vest after three years, subject to performance
  achievement. To the extent that the performance target is not met, the options
  will lapse. Re-testing of performance is not permitted.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The price
  at which shares can be acquired on option exercise will be no lower than the
  market value of the shares on the day prior to the date of grant of the options.
  Therefore, scheme participants only benefit if the share price increases and
  vesting conditions are achieved.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In July
  2005, the Chief Executive received an award of options with a face value of
  six and a half times base salary; the Deputy Chief Executive and the other executive
  directors five times their base salary.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Illustration<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">To
    help shareholders understand the value of the package provided to the Chief
    Executive, the following illustration demonstrates that in order to gain value
    from the incentive plans, considerable shareholder value must be created.</font>
  </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For example,
  if the Company&#146;s share price increases by over 50% from 127.0 pence to
  approximately 190.0 pence, the Company&#146;s value increases by &pound;42 billion,
  and there was a 50% vesting of long term incentives, the Chief Executive would
  have a pre-tax gain of approximately &pound;4 million, representing less than
  a hundredth of 1% of the total increase in shareholder value.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Measurement
    of performance under IFRS<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From
    1 April 2005, the Company has prepared its financial statements under IFRS.
    The Remuneration Committee has reviewed the impact of the introduction of
    IFRS for incentive scheme purposes, to ensure that EPS performance achievement
    is measured on a consistent basis and that the introduction of the new standard
    does not advantage or disadvantage participants. For the schemes affected,
    EPS under IFRS is adjusted to reflect UK GAAP measurement so that performance
    may be measured on a consistent basis. In each case, an independent auditor
    is requested to review and verify the achievement level.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
    ownership guidelines<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive
    directors participating in long term incentive plans must comply with the
    Company&#146;s share ownership guidelines. These guidelines, which were first
    introduced in 2000, require the Chief Executive to have a shareholding in
    the Company of four times base salary and other executive directors to have
    a shareholding of three times base salary.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">It is intended
  that these ownership levels will be attained within five years from the director
  first becoming subject to the guidelines and be achieved through the retention
  of shares awarded under incentive plans.</font> </p>
  <p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pensions<br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Chief Executive, Arun Sarin, is provided with a defined contribution pension
    arrangement to which the Company contributes 30% of his base salary. The contribution
    is currently held in a notional fund outside the Company pension scheme.</font>
  </p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
  2006 financial year, Sir Julian Horn-Smith, Peter Bamford, and Andy Halford,
  being UK based directors, were contributing members of the Vodafone Group Pension
  Scheme, which is a UK defined benefit scheme approved by the Inland Revenue.
  The scheme provides a benefit of two-thirds of pensionable salary after a minimum
  of 20 years&#146; service. The normal retirement age is 60, but directors may
  retire from age 55 with a pension proportionately reduced to account for their
  shorter service but with no actuarial reduction. Where directors&#146; benefit
  levels are restricted by Inland Revenue limits, the Company made contributions
  to the defined contribution Vodafone Group Funded Unapproved Retirement Benefit
  Scheme (&#147;FURBS&#148;).</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir Julian
  Horn-Smith has elected to receive his pension from 6 April 2006, prior to his
  actual retirement from the Company, in accordance with the new UK pension rules
  effective from April 2006. Sir Julian is planning to retire at the end of the
  2006 AGM and the Committee authorised a pension allowance of 30% of base salary
  for four months until he steps down from the Board.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas Geitner
  is entitled to a defined benefit pension of 40% of salary from a normal retirement
  age of 60. On early retirement, the pension may be reduced if he has accrued
  less than 10 years of Board service.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All the
  plans referred to above provide benefits in the event of death in service.</font>
</p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Further
    details of the pension benefits earned by the directors in the year ended
    31 March 2006 can be found on page 66. Liabilities in respect of the pension
    schemes in which the executive directors participate are funded to the extent
    described in note 25 to the Consolidated Financial Statements, &#147;Post
    employment benefits&#148;.</font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">A-Day
    proposals<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As
    a result of the new UK legislation affecting the taxation of pensions, the
    Company has reviewed the pension arrangements it provides to UK based executives.
    From April 2006, executives participating in UK pension arrangements may choose
    to continue membership of the Vodafone Group Pension Scheme or opt out and
    instead receive a non-pensionable cash allowance. Participation in an Inland
    Revenue approved defined contribution plan or a non-pensionable cash allowance
    will be provided in place of the current FURBS arrangement.</font> </p>
  <p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All-employee
    share incentive schemes<br>
    </font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Global
    All Employee Share Plan<br>
    </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As
    in the 2005 financial year, the Remuneration Committee has approved that an
    award of shares based on the achievement of performance conditions be made
    to all employees in the Vodafone Group. The 2006 award will be made on 3 July
    2006. These awards have a dilutive effect of approximately 0.03%.</font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Sharesave<br>
    </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Vodafone Group 1998 Sharesave Scheme is an Inland Revenue approved scheme
    open to all UK permanent employees.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">63</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p64"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p> <font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board&#146;s
  Report to Shareholders on Directors&#146; Remuneration<br>
  </font></b></font><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font>
</p>
<div style="float: left; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The maximum
  that can be saved each month is &pound;250 and savings plus interest may be
  used to acquire shares by exercising the related option. The options have been
  granted at up to a 20% discount to market value. UK based executive directors
  are eligible to participate in the scheme and details of their participation
  are given in the table on page 68.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
  Incentive Plan</font></b><br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Vodafone Share Incentive Plan (&#147;SIP&#148;) is an Inland Revenue approved
  plan open to all UK permanent employees. Eligible employees may contribute up
  to &pound;125 each month and the trustee of the plan uses the money to buy shares
  on their behalf. An equivalent number of shares is purchased with contributions
  from the employing company. UK based executive directors are eligible to participate
  in the SIP and details of their share interests under these plans are given
  in the table on page 69.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-executive
  directors&#146; remuneration</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The remuneration
  of non-executive directors is periodically reviewed by the Board, excluding
  the non-executive directors. Basic fee levels were increased in April 2005 to
  reflect directors&#146; considerably increased workload and the increased complexity
  of managing an international group. The fees payable are as follows:</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td nowrap>&nbsp;</td>
    <td align="center"><div align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fees
      payable from 1 April 2005</font></b></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td align="center"><div align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairman</font></td>
      <td width="35%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">510</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deputy
      Chairman and Senior Independent Director</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic
      Non-Executive Director fee</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairmanship
      of Audit Committee</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairmanship
      of Remuneration Committee</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairmanship
      of Nominations and Governance Committee</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition,
  an allowance of &pound;6,000 is payable each time a non-Europe based non-executive
  director is required to travel to attend Board and Committee meetings, to reflect
  the additional time commitment involved.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details
  of each non-executive director&#146;s remuneration are included in the table
  on page 65.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-executive
  directors do not participate in any incentive or benefit plans. The Company
  does not provide any contribution to their pension arrangements. The Chairman
  is entitled to the provision of a fully expensed car or car allowance.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
  contracts and appointments of directors<br>
  </font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Executive
  directors<br>
  </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Remuneration Committee has determined that, after an initial term that may be
  of up to two years&#146; duration, executive directors&#146; contracts should
  thereafter have rolling terms and be terminable on no more than one year&#146;s
  notice. All current executive directors&#146; contracts have an indefinite term
  (to normal retirement date) and one year notice periods. No payments should
  normally be payable on termination other than the salary due for the notice
  period and such entitlements under incentive plans and benefits that are consistent
  with the terms of such plans.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All the
  UK based executive directors have, whilst in service, entitlement under a long
  term disability plan from which two-thirds of base salary, up to a maximum benefit
  determined by the insurer, would be provided until normal retirement date. In
  the event of disability, Thomas Geitner would receive his normal retirement
  pension based on his accrued service.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Sir
  Julian Horn-Smith<br>
  </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
  Julian Horn-Smith, the Company&#146;s Deputy Chief Executive, will retire from
  the Company following the AGM on 25 July 2006. Sir Julian will be entitled to
  subsisting awards, pro-rated for both time and performance, in accordance with
  the standard rules of each incentive plan in which he participates. Sir Julian
  will receive a pension in line with the standard rules of the plan in which
  he participates, described in more detail in &#147;Pensions&#148; on page 63.
  The Remuneration Committee agreed that he would be offered the opportunity to
  purchase his company car on leaving the Company. No severance payment will be
  payable to him.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Peter
  Bamford<br>
  </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
  Bamford left the Company on 1 April 2006 and will receive salary and compensation
  for loss of office in accordance with his legal entitlement. The total payment
  is in the order of &pound;1.25 million, including pension contribution. He will
  receive his annual bonus for the 2006 financial year and the Remuneration Committee
  has exercised discretion to allow him access to long term incentive awards,
  pro-rated for time and performance.</font> </p>
</div>
  <div style="float: right; width: 48%">
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fees
  retained for non-executive directorships in other companies<br>
  </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Some
  executive directors hold positions in other companies as non-executive directors.
  The fees received in respect of the 2006 financial year and retained by directors
  were as follows:</font> </p>
  <table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr>
    <td>&nbsp;</td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fees
        retained by the</font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">individual
        in the</font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company
        in which non-</font></div></td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006
        financial year</font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">executive
        directorship is held</font></div></td>
    <td align="center"><div align="right"></div></td>
    <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></td>
      <td width="40%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
        of England</font></td>
    <td width="2%" align="right"><font size="2">&nbsp;</font></td>
      <td width="22%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.0</font></b></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Singulus
      Technologies AG</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61.9</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Smiths
      Group plc</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">50.0</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">LloydsTSB
      Group plc</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">74.0</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sage
      Group plc</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.4</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reckitt
      Benckiser plc</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.0</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tesco
      PLC</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18.5</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
      <td bgcolor="#cccccc">
        <hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
    <td width="5%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fees were retained in accordance with Company policy.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An option over 400,000 shares was granted to Sir Julian in November 2005 by China Mobile (Hong Kong) Limited for his duties as non-executive director, which are
held for the benefit of the Company and will lapse on his retirement.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fees retained in the period to 26 July 2005.</font></td>
</tr>
</table>
<p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chairman
  and non-executive directors<br>
  </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
  December 2005, the Company announced that Lord MacLaurin, the Company&#146;s
  Chairman, will retire from the Company following the AGM on 25 July 2006. Lord
  MacLaurin will receive fees in accordance with his service contract until the
  end of the 2006 calendar year. The Company has entered into an agreement with
  Lord MacLaurin that he will provide advisory services to the Company for a period
  of three years following his retirement. During this period he will receive
  an annual fee of &pound;125,000, which he has advised the Company he intends
  to donate to charity.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In December
  2005, Sir John Bond accepted the invitation of the Board to be appointed as
  Chairman of the Company following the 2006 AGM. As Chairman, he will receive
  a fee of &pound;475,000 per annum. The appointment is indefinite and may be
  terminated by either party on one year&#146;s notice.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-executive
  directors, including the Deputy Chairman, are engaged on letters of appointment
  that set out their duties and responsibilities. The appointment of non-executive
  directors may be terminated without compensation.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The terms
  and conditions of appointment of non-executive directors are available for inspection
  by any person at the Company&#146;s registered office during normal business
  hours and at the AGM (for 15 minutes prior to the meeting and during the meeting).</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip Yea,
  Anne Lauvergeon and Tony Watson were appointed to the Board as non-executive
  directors with effect from 1 September 2005, 1 November 2005 and 1 May 2006
  respectively, and hold office on the same terms as other non-executive directors.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">TSR performance</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following
  chart shows the performance of the Company relative to the FTSE100 index and
  the FTSE Global Telecommunications index, which are the most relevant indices
  for the Company.</font> </p>
<p>
<img src="b826353-20fx66x1.jpg" border=0>
</p>
<p>
<font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Graph provided
by Towers Perrin and calculated according to a methodology that is compliant
with the requirements of Schedule 7A of the Companies Act. Data Sources: FTSE
and  Datastream</font></p>
<p><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note: Performance
    of the Company shown by the graph is not indicative of vesting levels under
    the Company&#146;s various incentive plans.</font>
</p>
  </div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p65"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audited
  Information<br>
  </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
  Remuneration for the year ended 31 March 2006<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  remuneration of the directors serving during the year ended 31 March 2006 was
  as follows:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Salary/fees</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=4 align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentive
      schemes</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"> <hr noshade size=1></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=4 align="right" valign="bottom"> <hr noshade size=1></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"> <hr noshade size=1></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan="4" align="right" valign="bottom"> <hr noshade size=1></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1"><b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="left" valign="top"><font size="1"><b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></b></font><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1"><b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="left" valign="top"><font size="1"><b><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></b></font><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chairman</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord
      MacLaurin</font></font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">520</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">485</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">577</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">517</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deputy
      Chairman</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Paul
      Hazen<sup>(3)</sup></font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">173</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">173</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Chief
      Executive</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,254</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,175</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,424</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,148</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">54</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">183</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,732</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,506</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Executive
      directors</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">804</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">771</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">908</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">663</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">48</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,760</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,471</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">734</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">679</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">851</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">665</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,733</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,381</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">342</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">396</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">754</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,022</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">970</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,169</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">966</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">48</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,239</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,970</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">253</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">264</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">776</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">608</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,585</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-executive
      directors</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      John Bond</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
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    <td align="right">&nbsp;</td>
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    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
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  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dr
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
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  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
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  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">John
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    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td><font size="2">&nbsp;</font></td>
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    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Penny
      Hughes</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100</font></b></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Anne
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    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
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  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      David Scholey</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">32</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">32</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Professor
      J&uuml;rgen Schrempp</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luc
      Vandevelde</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">105</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">105</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip
      Yea</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">55</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
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    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">55</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Former
      directors</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">191</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,283</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">229</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,283</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">420</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
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  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,958</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,806</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,012</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,218</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,745</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">582</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,715</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,606</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2> </td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2> </td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2> </td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These
      figures are the cash equivalent value of the base share awards under the
      Vodafone Group Short Term Incentive Plan applicable to the year ended 31
      March 2006. These awards are in relation to the performance achievements
      against targets in adjusted operating profit, total service revenue, free
      cash flow and customer delight for the 2006 financial year.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits
      principally comprise cars and private health and disability insurance. Thomas
      Geitner relocated from Germany to the UK during the 2006 financial year.
      The benefits figure disclosed includes relocation expenses and a monthly
      allowance to reflect the higher cost of living in the UK.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fees
      include allowances paid in respect of a non-executive director based outside
      of Europe to reflect the additional time commitment involved when required
      to travel to attend Board and Committee meetings.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under
      the terms of an agreement, Sam Ginn, a former director of the Company, provides
      consultancy services to the Group and was entitled to certain benefits.
      The estimated value of the benefits received by him in the year to 31 March
      2006 was &pound;29,852. During the year, the agreement was terminated by
      mutual agreement. Mr Ginn received a payment of $2.23m (&pound;1.25m) as
      compensation for benefits for the outstanding term.</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The aggregate
  compensation paid by the Company to its collective senior management</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)
  </font></sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for
  services for the year ended 31 March 2006, is set out below. The aggregate number
  of senior management as at 31 March 2006 was ten, the same number as at 31 March
  2005.</font></font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Salaries
      and fees</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,555</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,972</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentive
      schemes</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,155</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,875</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,125</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,066</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,835</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,913</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aggregate
      compensation for senior management is in respect of those individuals who
      were members of the Executive Committee during the year ended 31 March 2006,
      other than executive directors and reflects compensation paid from date
      of appointment to the Executive Committee, to 31 March 2006 or date of leaving,
      where applicable.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Comprises
      the incentive scheme information for senior management on an equivalent
      basis to that disclosed for directors in the table at the top of this page.
      Details of share incentives awarded to directors and senior management are
      included in footnotes to &#147;Short term incentives&#148; and &#147;Long
      term incentives&#148; on pages 66 and 67.</font></td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">65</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p66"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board&#146;s
  Report to Shareholders on Directors&#146; Remuneration<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>


<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pensions<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pension
  benefits earned by the directors serving during the year ended 31 March 2006
  were:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employer</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer
      value</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">allocation/</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change
      in transfer</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of
      change in</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contribution
      to</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      accrued</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change
      in</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value
      over year</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Change
      in accrued</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">accrued
      benefit</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">to
      defined</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">benefit
      at</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">accrued
      benefit</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer
      value at</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer
      value at</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">less
      member</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">benefit
      in excess</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">net
      of member</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contribution</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
      March 2006</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">over
      the year</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
      March 2005</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
      March 2006</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contributions</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of
      inflation</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contributions</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">plans</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Name
      of Director</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">360.0</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30.8</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.5</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">348.8</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">529.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">177.4</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">44.2</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">202.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">115.8</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23.1</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,163.2</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,971.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">808.2</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.6</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">350.7</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13.3</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.3</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110.1</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">182.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69.0</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.0</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23.7</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">73.6</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">605.2</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57.1</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,090.3</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,231.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,106.2</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">42.3</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">890.0</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">516.6</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.4</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,241.1</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,637.2</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,396.1</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79.2</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      accrued pension benefits earned by the directors are those which would be
      paid annually on retirement, based on service to the end of the year, at
      the normal retirement age. The increase in accrued pension excludes any
      increase for inflation.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      transfer values have been calculated on the basis of actuarial advice in
      accordance with the Faculty and Institute of Actuaries&#146; Guidance Note
      GN11. No director elected to pay additional voluntary contributions. The
      transfer values disclosed above do not represent a sum paid or payable to
      the individual director. Instead they represent a potential liability of
      the pension scheme.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon reached 60 years of age on 3 November 2004 and retired from the Company
      following the AGM on 26 July 2005. In accordance with the standard rules
      of the scheme, he received an immediate pension based on his accrued benefit
      without actuarial reduction or any enhancement. From 1 December 2004, Ken
      Hydon accrued a cash allowance equivalent to 30% of his base salary, which
      ceased on leaving the Company.</font></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect of senior management, the Group has made aggregate contributions of &pound;829,582 into pension schemes. The Company&#146;s proposals in light of the changes in pension
legislation are detailed under &#147;Pensions&#148; on page 63.</font>
</p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors&#146;
  interests in the shares of the Company<br>
  </font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Short
  term incentives<br>
  </font></b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Conditional
  awards of ordinary shares made to executive directors under the STIP, and dividends
  on those shares paid under the terms of the Company&#146;s scrip dividend scheme
  and dividend reinvestment plan, are shown below. STIP shares which vested and
  were sold or transferred during the year ended 31 March 2006 are also shown
  below.</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      conditionally</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      conditionally</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">awarded
      during the</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">awarded
      during the year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      interest</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">year
      as base award</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">as
      enhancement shares</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      sold or transferred</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in STIP
      at</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
      respect of STIP awards</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in
      respect of STIP awards</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
      the year in respect</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2005</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for
      the 2005 financial year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for
      the 2005 financial year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of
      the 2003 financial year</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td colspan=5><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      interest in STIP as at 31 March 2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1> </td>
    <td colspan=3> <hr noshade size=1></td>
    <td> <hr noshade size=1> </td>
    <td colspan=3> <hr noshade size=1></td>
    <td> <hr noshade size=1> </td>
    <td colspan=3> <hr noshade size=1></td>
    <td> <hr noshade size=1> </td>
    <td colspan=5> <hr noshade size=1></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Value
      at</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Value
      at</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect
      of</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number
      of</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date
      of award</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)(3)</sup></font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date
      of award</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>((3)</sup></font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect
      of</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">enhancement</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of base</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">enhancement</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      value</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(4)</sup></font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">base
      awards</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">award
      shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td></tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,520,600</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">840,498</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,148</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">420,249</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">574</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,854,231</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">927,116</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,352</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,958,447</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">704,311</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">352,155</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">601,320</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">300,661</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,087</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">329,205</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">285,453</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">390</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">142,726</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">195</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">219,470</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">109,735</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">285,453</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">142,726</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">516</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">565,211</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">181,941</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90,971</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">194,866</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97,433</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">352</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,324,070</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">882,713</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">441,357</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,081,324</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">720,883</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">360,441</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font>
    </td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      in respect of the STIP awards for the 2003 financial year were transferred
      on 1 July 2005.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Previously
      disclosed within directors&#146; emoluments for the year ended 31 March
      2005.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Value
      at date of award is based on the price of the Company&#146;s ordinary shares
      on 1 July 2005 of 136.25p.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      value at 31 March 2006 is calculated using the closing middle market price
      of the Company&#146;s ordinary shares at 31 March 2006 of 120.5p.</font></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The aggregate number of shares conditionally awarded during the year as base award and enhancement shares to the Company&#145;s senior management, other than executive directors, is
514,603. For a description of the performance and vesting conditions, see &#147;Short and medium term incentive: annual deferred share bonus&#148; on page 62.</font>
</p>
<p>&nbsp; </p>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p67"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Long
  term incentives<br>
  </font></b><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Performance
  shares<br>
  </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Conditional
  awards of ordinary shares made to executive directors under the Vodafone Group
  Long Term Incentive Plan and Vodafone Group Plc 1999 Long Term Stock Incentive
  Plan, and dividends on those shares paid under the terms of the Company&#146;s
  scrip dividend scheme and dividend reinvestment plan, are shown below. Long
  Term Incentive shares that vested and were sold or transferred during the year
  ended 31 March 2006 are also shown below:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      sold or</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      forfeited in</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">transferred
      in</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      interest in</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">added
      during the</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">respect
      of awards</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">respect
      of awards</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long
      Term Incentives</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006
      financial year</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for
      the 2003,</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for
      the 2003,</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">at 1
      April 2005 or</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      conditionally awarded</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">through
      dividend</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004
      and 2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004
      and 2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      interest in long term</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date
      of appointment</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
      the 2006 financial year</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reinvestment</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial
      years</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial
      years</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">incentives
      at 31 March 2006</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Value
      at</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date
      of award</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      value</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(4)</sup></font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(3)</sup></font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(3)</sup></font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of shares</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font></td>
    <td width="11%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,861,669</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,717,120</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,494</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,578,789</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,722</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,934,630</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">876,532</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,273</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,609</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">592,145</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">492,367</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,742,259</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,304</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,429,377</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">811,127</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,178</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,949</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">453,321</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">376,934</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,422,198</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,919</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">514,616</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">539,975</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">784</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,110</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">118,013</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">98,126</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">841,562</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,014</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,717,872</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,117,080</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,623</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,387</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">773,413</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">643,092</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,438,834</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,144</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,948,
      684</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,609</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">592,145</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">788,719</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Restricted
      share awards under the Vodafone Group Long Term Incentive Plan and Vodafone
      Group Plc 1999 Long Term Stock Incentive Plan.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      value of awards under the Vodafone Group Plc 1999 Long Term Incentive Plan
      is based on the price of the Company&#146;s ordinary shares on 26 July 2005
      of 145.25p.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares
      in respect of awards for the 2003 financial year were sold or transferred
      on 1 July 2005 and 19 August 2005. The closing middle market price of the
      Company&#146;s ordinary shares on 1 July 2005, the date of vesting, was
      136.25p.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      value at 31 March 2006 is calculated using the closing middle market price
      of the Company&#146;s ordinary shares at 31 March 2006 of 120.5p.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All
      employees, including Executive Directors with the exception of those retiring
      in the 2006 financial year, received an award of 320 shares on 1 July 2005,
      under the Global All Employee Share Plan. The awards vest after two years
      and are not subject to performance conditions.</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The aggregate
  number of shares conditionally awarded during the year to the Company&#145;s
  senior management is 3,192,815 shares. For a description of the performance
  and vesting conditions see &#147;Long term incentives&#148; on pages 62 to 63.
  In some cases local performance conditions attach to the awards.</font> </p>
<p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
  options<br>
  </font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  following information summarises the directors&#146; options under the Vodafone
  Group Plc Savings Related Share Option Scheme, the Vodafone Group 1998 Sharesave
  Scheme, the Vodafone Group Plc Executive Share Option Scheme and the Vodafone
  Group 1998 Company Share Option Scheme, all of which are HM Revenue and Customs
  approved schemes. The table also summarises the directors&#146; options under
  the Vodafone Group Plc Share Option Scheme, the Vodafone Group 1998 Executive
  Share Option Scheme, the AirTouch Communications, Inc. 1993 Long Term Stock
  Incentive Plan and the Vodafone Group Plc 1999 Long Term Stock Incentive Plan,
  which are not HM Revenue and Customs approved. No other directors have options
  under any of these schemes. Only under the Vodafone Group 1998 Sharesave Scheme
  may shares be offered at a discount in future grants of options. For a description
  of the performance and vesting conditions see &#147;Long term incentives&#148;
  on pages 62 to 63.</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
      held at</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
      granted</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
      exercised</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
      lapsed</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted
      average</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">or date
      of</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
      the 2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
      the 2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
      the 2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options
      held at</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise
      price at</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Earliest
      date</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">appointment</font></td>
    <td align="left" valign="top"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial
      year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial
      year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial
      year</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">from
      which</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Latest</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr align="right" valign="bottom">
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
    <td><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercisable</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expiry
      date</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><font size="1">&nbsp;</font></td>  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun
      Sarin</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)(3)</font></sup></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,704,987</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,711,292</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,416,279</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">152.5</font></b></td>
    <td width="2%" align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jun
      2000</font></b></td>
    <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2015</font></b></td>
    <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
      Bamford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,073,022</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,915,424</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,350,652</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,053,776</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,584,018</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148.5</font></b></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2002</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Mar
      2007</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas
      Geitner</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,334,854</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,697,882</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,635,776</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,396,960</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">140.5</font></b></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2003</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2015</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
      Halford</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">921,485</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,796,003</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,395</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,704,093</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">147.6</font></b></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2002</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2015</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir
      Julian Horn-Smith</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,332,869</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,715,505</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,847,776</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25,200,598</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">134.9</font></b></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2002</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2015</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken
      Hydon</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,717,166</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,338,371</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,280,782</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,098,013</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">213.9</font></b></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2002</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul
      2006</font></b></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100,084,383</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,836,106</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,702,418</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,818,110</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91,399,961</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      weighted average exercise price of options over shares in the Company granted
      during the year and listed above is 145.25 pence. The earliest date from
      which they are exercisable is July 2008 and the latest expiry date is 25
      July 2015. For a description of the performance and vesting conditions see
      &#147;Long term incentives&#148; on pages 62 to 63.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Some
      of the options held by Arun Sarin are held in the form of ADSs, each representing
      ten ordinary shares of the Company, which are traded on the New York Stock
      Exchange. The number of ADSs over which Arun Sarin holds options is 625,000.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      terms of the share options granted over 6,250,000 shares in 1999 to Arun
      Sarin allow exercise until the earlier of the date on which he ceases to
      be a director of the Company and the seventh anniversary of the respective
      dates of grant.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
      accordance with the terms of the plan rules, options granted to Ken Hydon
      became exercisable on retirement, being pro-rated for both time and performance.</font></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The aggregate number of options granted during the year to the Company&#146;s senior management, other than executive directors, is 10,454,900. The weighted average exercise price of
the options granted to senior management during the year is 145.24 pence. The earliest date from which they are exercisable is July 2008 and the latest expiry date is 25 July 2015.</font>
</p>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p68"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p><font size="3">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</font></p>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Further details of options outstanding at 31 March 2006 are as follows:</font><font size="2">
  </font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercisable:
    Market price</font></font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercisable:
    Option price</font></font></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">greater
    than option price</font></td>
  <td align="left"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">greater
    than market price</font></td>
  <td align="left"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not
    yet exercisable</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td colspan="3" align="right"><hr noshade size=1></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td colspan="3" align="right"><hr noshade size=1></td>
  <td align="left"><font size="1">&nbsp;</font></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Latest</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Latest</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Earliest date from</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options held</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise price</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expiry date</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options held</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise price</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">expiry date</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options held</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise price</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">which exercisable</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><font color="#eeeeee" size="1">&nbsp;</font></td>   </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun Sarin</font><font size="2"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td width="7%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="7%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td width="1%" align="left" bgcolor="#cccccc">&nbsp;</td>
   <td width="7%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,250,000</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">236.3</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="7%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td width="1%" align="left" bgcolor="#cccccc">&nbsp;</td>
   <td width="7%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,166,279</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126.5</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td width="1%" align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter Bamford</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,307,713</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">207.2</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Mar-07</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,276,305</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">132.7</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas Geitner</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,507,178</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97.0</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Aug-12</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,259,679</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">209.3</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-11</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,630,103</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">134.4</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy Halford</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94,444</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90.0</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-12</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">344,800</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">214.6</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-11</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,264,849</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139.8</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir Julian Horn-Smith</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,753,505</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97.0</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Aug-12</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,701,990</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">201.7</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-11</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,745,103</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">133.1</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ken Hydon</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,098,013</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">213.9</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Jul-06</font></b></font></td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,355,127</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,962,195</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="left" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">62,082,639</font></b></font></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc">&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left">
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font><font size="1">&nbsp;</font></td>
  </tr>
<tr align="left">
   <td width="2%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Market price is the closing middle market price of the Company&#146;s ordinary shares at 31 March 2006 of 120.5p.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Some of Arun Sarin&#146;s options are in respect of American Depositary Shares, each representing ten ordinary shares in the Company, which are traded on the New
York Stock Exchange. The number and option price have been converted into the equivalent amounts for the Company&#146;s ordinary shares.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s register of directors&#146; interests (which is open to inspection at the Company&#146;s registered office) contains full details of directors&#146; shareholdings
and options to subscribe. These options by exercise price were:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options held at</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options granted</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options exercised</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options lapsed</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">or date of</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during the 2006</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during the 2006</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during the 2006</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options held at</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Option price</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">appointment</font></td>
   <td align="left"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial year</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial year</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">financial year</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr align="right">
  <td><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td></tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group Plc Share Option Scheme (Unapproved &#150; 1988)</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">155.90</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">855,000</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">855,000</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group 1998 Company Share Option Scheme (Approved)</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">255.00</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">502,500</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">502,500</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group 1998 Executive Share Option Scheme (Unapproved)</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">282.30</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,131,000</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,131,000</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group Plc Savings Related Share Option Scheme (1988)</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">70.92</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">63,521</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40,185</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,336</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group 1998 Sharesave Scheme</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95.30</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,710</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,710</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">108.84</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,705</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,705</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group Plc 1999 Long Term Stock Incentive Plan</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90.00</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94,444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94,444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97.00</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,935,197</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,674,514</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,260,683</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">119.00</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,794,632</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,079,081</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,246,855</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,468,696</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">119.25</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,119,811</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,908,638</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">831,039</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,380,134</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145.25</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,836,106</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,836,106</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">151.56</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,000,400</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,000,400</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">157.50</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,943,043</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,342,112</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14,600,931</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="1"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">236.34</font></b></font></td>
   <td align="left" bgcolor="#cccccc"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></b>&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,250,000</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,250,000</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">291.50</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,369,420</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,543,104</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,826,316</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
</td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100,084,383</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,836,106</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,702,418</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,818,110</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91,399,961</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left">
  <td colspan="2" valign="top"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes:</font></b><font size="1">&nbsp;</font></td>
  </tr>
<tr align="left">
   <td width="2%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Includes options held by Andy Halford as at 26 July 2005 on appointment to the Board</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These share options are in respect of American Depositary Shares, each representing ten ordinary shares in the Company, which are traded on the New York Stock
Exchange. The number and option price have been converted into the equivalent amounts for the Company&#146;s ordinary shares.</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details of
    the options exercised by directors of the Company in the year ended 31 March
    2006 are as follows:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Options</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Market
          price</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercised</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">at
          date of</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">during
          the year</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Option
          price</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">pre-tax
          gain</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;&#146;000</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Peter
        Bamford</font></td>
    <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,395</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">70.9</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">152.0</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.9</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy
        Halford</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,395</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">70.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">152.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr align="right">
    <td align="left"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,790</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Note:</font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        aggregate gross pre-tax gain made on the exercise of share options in
        the 2006 financial year by the Company&#146;s above directors was &pound;21,721
        (2005: &pound;3,076,276). The closing middle market price of the Company&#146;s
        shares at 31 March 2006 was 120.5p, its highest closing price in the
        2006 financial year having been 155.0 pence and its lowest closing price
    having been 109.0 pence.</font> </td>
  </tr>
</table>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></TD>
  </TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p69"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Governance</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Beneficial interests<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
directors&#146; beneficial
interests in the ordinary shares of the Company, which includes interests in
the Vodafone Group Profit Sharing Scheme and the Vodafone Share Incentive Plan,
but which excludes interests in the Vodafone Group Share Option Schemes, the
Vodafone Group Short Term Incentive or in the Vodafone Group Long Term Incentives,
are shown below:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005 or date</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26 May 2006</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">of appointment</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td align="left"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td></tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord MacLaurin</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92,495</font></td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">92,495</font></b></font></td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="14%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92,495</font></td>
   <td width="2%" align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Paul Hazen</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">360,900</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">360,900</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">360,900</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun Sarin</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,932,560</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,932,560</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,832,560</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Thomas Geitner</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">451,556</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">451,556</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">417,700</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy Halford</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">108,293</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">107,895</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">91,336</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir Julian Horn-Smith</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,829,385</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,828,987</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,818,257</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sir John Bond</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">134,423</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">134,423</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34,423</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dr Michael Boskin</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">212,500</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">212,500</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">212,500</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord Broers</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,483</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,483</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,819</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">John Buchanan</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">208,124</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">208,124</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">104,318</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Penny Hughes</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22,500</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22,500</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22,500</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Anne Lauvergeon</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31,000</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">31,000</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Professor
    J&uuml;rgen Schrempp</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,000</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,000</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,000</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luc Vandevelde</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,000</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,000</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,000</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Philip Yea</font><font size="2"><sup><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70,000</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">70,000</font></b></font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
  <td height="19" align="left"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left">
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
<tr align="left">
   <td width="2%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arun Sarin also has a non-beneficial interest as the trustee of two family trusts, each holding 5,720 shares.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Andy Halford was appointed to the Board on 26 July 2005.</font></td>
</tr>
<tr align="left">
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-executive directors appointed to the Board as follows: Anne Lauvergeon: 1 November 2005, Philip Yea: 1 September 2005.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes to the interests of the directors of the Company in the ordinary shares of the Company during the period from 1 April 2006 to 26 May 2006 relate to shares acquired either
through Vodafone Group Personal Equity Plans or the Vodafone Share Incentive Plan. As at 31 March 2006, and during the period from 1 April 2006 to 26 May 2006, no director had any interest in the shares of any subsidiary company.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other than those individuals included in the table above who were Board members at 31 March 2006, members of the Group&#146;s Executive Committee, as at 31 March 2006, had an
aggregate beneficial interest in 2,078,326 ordinary shares of the Company. At 26 May 2006, Executive Committee members at that date had an aggregate beneficial interest in 2,079,522 ordinary shares of the Company, none of whom had an individual
beneficial interest amounting to greater than 1% of the Company&#146;s ordinary shares.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Interests in share options of the Company at 26 May 2006<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
26 May 2006, there had been no change to the directors&#146; interests in share
options from 31 March 2006.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other than those individuals included in the table above, at 26 May 2006, members of the Group&#146;s Executive Committee at that date held options for 34,714,916 ordinary shares at
prices ranging from 48.3 pence to 293.7 pence per ordinary share, with a weighted average exercise price of 141.60 pence per ordinary share exercisable at dates ranging from July 1999 to July 2015, and options for 172,669 ADSs at prices ranging from
$13.65 to $45.3359 per ADS, with a weighted average exercise price of $26.6056 per ADS, exercisable at dates ranging from July 2001 to July 2013.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Lord MacLaurin, Paul Hazen, Sir John Bond, Dr Michael Boskin, Lord Broers, John Buchanan, Penny Hughes, Anne Lauvergeon, Professor J&uuml;rgen Schrempp, Luc Vandevelde and Philip Yea
held no options at 26 May 2006.</font></font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors&#146; interests in contracts<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">None of the current directors had a material interest in any contract of significance to which the Company or any of its subsidiary undertakings was a party during the financial
year.</font><font size="2">
</font></p>
<p><font size="2">
<img src="b826353-20fx71x1.jpg" border=0><br>
</font><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Luc Vandevelde<br>
</font></b></font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">On behalf of the Board</font></b>
</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">69</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p70"></a>
<p><a href="#contents3"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Directors&#146; Statement of Responsibility</font></b></p>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United Kingdom company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and
  the Group as at the end of the financial year and of the profit or loss of the Group for that period. In preparing those financial statements, the directors are required to:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="3%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td width="97%" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">select suitable accounting policies and apply them consistently;</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">make judgements and estimates that are reasonable and prudent;</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">state whether the Consolidated Financial Statements have been prepared in accordance with IFRS as adopted for use in the EU;</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">for the Company Financial Statements, state whether applicable UK accounting standards have been followed; and</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company and the Group will continue in
business.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and the Group and to
enable them to ensure that the financial statements comply with the Companies Act 1985 and Article 4 of the IAS Regulation. They are also responsible for the system of internal control, for safeguarding the assets of the Company and the Group and,
hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disclosure of Information to Auditors<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Having
made the requisite enquiries, so far as the directors are aware, there is no
relevant audit information (as defined by Section 234ZA of the Companies Act
1985) of which the
Company&#146;s auditors are unaware, and the directors have taken all the steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the Company&#146;s
auditors are aware of that
information.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Going Concern<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">After
reviewing the Group&#146;s and Company&#146;s budget for the next financial year,
and other longer term plans, the directors are satisfied that, at the time of
approving the financial statements, it is appropriate to adopt the going concern
basis in preparing the financial statements.</font></p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">By Order of the Board<br>
</font><img src="b826353-20fx72x1.jpg" border=0><br>
<font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Stephen Scott<br>
</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Secretary<br>
</font></b></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30 May 2006</font></p></div>
<div style="float: right; width:48%">
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></TD>
  </TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p71"></a>
<a name="contents4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>

<p>&nbsp;</p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</font></b></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan=3 bgcolor="#ccffff">&nbsp;</td>
  <td bgcolor="#ccffff">&nbsp;</td>
  <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
   <td colspan=3 bgcolor="#ccffff"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;Contents</font></td>
   <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff">&nbsp;</td>
   <td width="87%" bgcolor="#ccffff">&nbsp;</td>
   <td align="right" bgcolor="#ccffff"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Page</font></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff">&nbsp;</td>
</tr>
<tr>
   <td colspan=3 bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p72"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated
    Financial Statements</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p72"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td width="1%" bgcolor="#ccffff">&nbsp;</td>
   <td colspan="2" bgcolor="#ccffff"><a href="#p72a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Consolidated
       Income Statement for the years ended 31 March</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p72a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72</font></a></td>
   <td width="1%" bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td colspan="2" bgcolor="#ccffff"><a href="#p72b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Consolidated
       Statement of Recognised Income and Expense for the year ended 31 March</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p72b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td colspan="2" bgcolor="#ccffff"><a href="#p73"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Consolidated
       Balance Sheet at 31 March</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p73"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td colspan="2" bgcolor="#ccffff"><a href="#p74"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Consolidated
       Cash Flow Statement for the years ended 31 March</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p74"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td colspan=3 bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p75"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes
    to the Consolidated Financial Statements</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p75"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">75</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td width="3%" bgcolor="#ccffff"><a href="#p75a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p75a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of preparation</font></a></td>
   <td width="8%" align="right" bgcolor="#ccffff"><a href="#p75a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">75</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p75b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p75b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant accounting policies</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p75b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">75</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p79"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p79"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segmental analysis</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p79"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p83"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p83"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating (loss)/profit</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p83"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">83</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p84"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p84"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment income and financing costs</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p84"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">84</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p85"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p85"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p85"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p87"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p87"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity dividends</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p87"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">87</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p88"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p88"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/earnings per share</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p88"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">88</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p89"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p89"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p89"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p91"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p91"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p91"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">91</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p93"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p93"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p93"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">93</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p94"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p94"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal subsidiary undertakings</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p94"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p95"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p95"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in joint ventures</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p95"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p96"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p96"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p96"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p96a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p96a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p96a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p97"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p97"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p97"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p97a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p97a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p97a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p98"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p98"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p98"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p98a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p98a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p98a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p99"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p99"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payments</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p99"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p102"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p102"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions with equity shareholders</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p102"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p102a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p102a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movements in accumulated other recognised income and expense</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p102a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p102b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p102b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movements in retained losses</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p102b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p102c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p102c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowings</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p102c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p106"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p106"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p106"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">106</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p109"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p109"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p109"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">109</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p110"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p110"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p110"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p111"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p111"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisitions</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p111"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p114"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p114"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued operations and disposals</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p114"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">114</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p116"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p116"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Commitments</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p116"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p117"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p117"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contingent liabilities</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p117"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p118"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p118"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reconciliation of net cash flows to operating activities</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p118"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p118a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">33.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p118a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors and key management compensation</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p118a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p119"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p119"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employees</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p119"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p119a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p119a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsequent events</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p119a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p120"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p120"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Related party transactions</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p120"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p120a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p120a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial information of joint ventures and associated undertakings</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p120a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p122"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p122"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US GAAP information</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p122"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p125"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p125"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New accounting standards</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p125"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">125</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p126"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p126"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transition to IFRS on first-time adoption</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p126"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td colspan=3 align="left" bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p131"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report
         of Independent Registered Public Accounting Firm to the Members of Vodafone
    Group Plc</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p131"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">131</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan=3 bgcolor="#ccffff"><hr noshade size=1>
  </td>
  <td bgcolor="#ccffff"><hr noshade size=1>
  </td>
  <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td colspan=3 align="left" bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p132"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company
    Financial Statements of Vodafone Group Plc at 31 March</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p132"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">132</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td colspan=3 bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td colspan=3 bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p133"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes
    to the Company Financial Statements</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p133"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p133a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p133a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of preparation</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p133a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p133b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p133b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant accounting policies</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p133b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p135"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p135"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed assets</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p135"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">135</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p135a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p135a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Debtors</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p135a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">135</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p135b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p135b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p135b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">135</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p136"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p136"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Creditors</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p136"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p136a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p136a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share capital</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p136a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p137"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p137"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reserves
    and reconciliation of movements in equity shareholders&#146; funds</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p137"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p137a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p137a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity dividends</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p137a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><a href="#p138"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.</font></a></td>
   <td bgcolor="#ccffff"><a href="#p138"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contingent liabilities</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p138"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">138</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td bgcolor="#ccffff">&nbsp;</td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><hr noshade size=1></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td height="16" colspan=3 bgcolor="#ccffff">&nbsp;&nbsp;<a href="#p139"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Independent Auditor&#146;s
    Report to the Members of Vodafone Group Plc</font></a></td>
   <td align="right" bgcolor="#ccffff"><a href="#p139"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139</font></a></td>
   <td bgcolor="#ccffff"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td height="16" colspan=3 bgcolor="#ccffff">&nbsp;</td>
  <td align="right" bgcolor="#ccffff">&nbsp;</td>
  <td bgcolor="#ccffff">&nbsp;</td>
</tr>
</table>


<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p72"></a>
<a name="p72a"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Income Statement for the years ended 31 March</font></b></p>
<p>&nbsp;</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Revenue</font></b></td>
   <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">51,048</font></b></td>
   <td width="2%" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,350</font></b></td>
   <td width="2%" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
   <td width="2%"><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost of sales</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(29,689</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,070</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(15,800</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Gross profit</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21,359</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,280</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,878</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling and distribution expenses</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,263</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,876</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,649</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Administrative expenses</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,941</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,416</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,856</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of result in associated undertakings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,223</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,428</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,980</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(40,900</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23,515</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(475</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other income and expense</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating (loss)/profit</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,4</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(24,496</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,084</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment income</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">614</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">353</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">294</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing costs</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,948</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,120</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(880</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit before taxation</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(25,833</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on (loss)/profit</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,140</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,380</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,869</font></td>
   <td><font size="2" face="sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from continuing operations</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(29,973</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,233</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from discontinued operations</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,980</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,588</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(37,953</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,821</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Attributable to:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity shareholders</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(38,118</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,916</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,410</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">165</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">95</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">108</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(37,953</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,821</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/earnings per share</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From continuing operations:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48.11</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27.66</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.12</font></td>
   <td><font size="2" face="sans-serif">p</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48.11</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27.66</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.09</font></td>
   <td><font size="2" face="sans-serif">p</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From continuing and discontinued operations:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(60.89</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(35.01</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.68</font></td>
   <td><font size="2" face="sans-serif">p</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(60.89</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)&cent;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(35.01</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)p</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.65</font></td>
   <td><font size="2" face="sans-serif">p</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="2" face="sans-serif">&nbsp;</font></td>
</tr>
</table>

<p><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><a name="p72b"></a>Consolidated
Statement of Recognised Income and Expense<br>
for the years ended 31 March</font></b></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gains on revaluation of available-for-sale investments, net of tax</font></td>
   <td width="5%" align="right"><font size="2">&nbsp;</font></td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,226</font></b></td>
   <td width="2%" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">705</font></b></td>
   <td width="2%" bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">106</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange differences on translation of foreign operations</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,599</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,494</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,488</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Actuarial losses on defined benefit pension schemes, net of tax</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(52</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(30</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(79</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Asset revaluation surplus</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">195</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">112</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer to the income statement on disposal of foreign operations</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">63</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net income recognised directly in equity</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,031</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,317</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,515</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(37,953</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,821</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total recognised income and expense relating to the year</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(33,922</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19,504</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,033</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Attributable to:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity shareholders</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(34,101</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19,607</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,958</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">179</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">103</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">75</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(33,922</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19,504</font></b></td>
   <td bgcolor="#cccccc"><b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,033</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The accompanying notes are an integral part of these Consolidated Financial Statements.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The unaudited US dollar amounts are prepared on the basis set out in note 1.</font></p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p73"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Balance Sheet at 31 March</font></b>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td align="right">&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-current assets</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
   <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91,497</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,606</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80,999</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other intangible assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,719</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,512</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,149</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,759</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,660</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,442</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40,346</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,197</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,686</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,119</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,181</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">244</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">140</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">628</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">361</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">585</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">188,912</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">108,614</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137,786</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Current assets</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">517</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">297</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">440</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation recoverable</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,718</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,438</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,164</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,851</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,789</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,769</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,100</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,532</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,411</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Assets included in disposal group held for sale</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,423</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,592</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total assets</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">220,435</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Equity</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,244</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,165</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91,216</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,284</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,259)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,198)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,121</font></td>
   <td><font size="2">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additional paid-in capital</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">174,194</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100,152</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100,081</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital redemption reserve</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">223</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated other recognised income and expense</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,114</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,090</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,781</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Retained losses</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(117,152)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(67,356)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(39,511</font></td>
   <td><font size="2">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148,580</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,425</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,800</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td bgcolor="#cccccc">&nbsp;</td>
  <td align="right" bgcolor="#cccccc">&nbsp;</td>
  <td bgcolor="#cccccc">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Minority interests</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(197)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(113)</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(152</font></td>
   <td><font size="2">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total equity</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148,383</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,312</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,648</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Non-current liabilities</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term borrowings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,133</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,750</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,190</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,862</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,670</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,849</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">209</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">120</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">461</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">265</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">319</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">984</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">566</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">438</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40,649</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,371</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,932</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Current liabilities</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term borrowings:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Third parties</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,340</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,070</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">861</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Related parties</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">657</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">378</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,142</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current taxation liabilities</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,736</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,448</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,353</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,005</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,477</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,033</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">242</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">228</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,980</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,512</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,617</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Liabilities included in disposal group held for sale</font></b></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
   <td align="right">&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,423</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,543</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">     <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total equity and liabilities</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">220,435</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
  <td><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Consolidated Financial Statements were approved by the Board of directors on 30 May 2006 and were signed on its behalf by:</font></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%"><img src="b826353-20fx75x1.jpg" border=0></td>
    <td><img src="b826353-20fx75x2.jpg" border=0></td>
  </tr>
  <tr>
    <td> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Arun
          Sarin<br>
    </font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Chief
    Executive</b> </font></td>
    <td> <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Andy
          Halford<br>
    </font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Chief
    Financial Officer</b> </font></td>
  </tr>
</table>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The accompanying
    notes are an integral part of these Consolidated Financial Statements. The
unaudited US dollar amounts are prepared on the basis set out in note 1.</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p74"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Consolidated Cash Flow Statement for the years ended 31 March</font></b></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>$m</b></font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net
      cash flows from operating activities</font></b></td>
    <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,
      32</font></td>
    <td width="2%" align="left" valign="bottom">&nbsp;</td>
    <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,595</font></b></td>
    <td width="2%" align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,841</font></b></td>
    <td width="2%" align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,979</font></td>
    <td width="2%" align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash
      flows from investing activities</font></b></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of interests in subsidiary undertakings and joint ventures, net of cash
      acquired</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,280</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,186</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,461</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of interests in subsidiary undertakings, net of cash disposed</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,042</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">599</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">444</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of intangible assets</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,200</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(690</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(699</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of property, plant and equipment</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,794</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,481</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,279</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of property, plant and equipment</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">45</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of investments</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(99</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(57</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(19</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of investments</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans
      to businesses sold or acquired businesses held for sale</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      received from associated undertakings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,452</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">835</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,896</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      received from investments</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">71</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      received</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">555</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">319</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">339</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net
      cash flows from investing activities</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(13,206</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,593</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,560</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash
      flows from financing activities</font></b></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Issue
      of ordinary share capital and reissue of treasury shares</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">619</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">356</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">115</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      movement in short-term borrowings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,231</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">708</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proceeds
      from the issue of long-term borrowings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,142</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,256</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Repayment
      of borrowings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,385</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,371</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,824</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans
      repaid to associated undertakings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(82</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(47</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
      of treasury shares</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11,230</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,457</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,053</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity
      dividends paid</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,781</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,749</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,991</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
      paid to minority shareholders in subsidiary undertakings</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(89</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(51</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(32</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      paid</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,254</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(721</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(744</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net
      cash flows from financing activities</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,829</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,076</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,531</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net
      decrease in cash and cash equivalents</font></b></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,440</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(828</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,112</font></td>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash
      and cash equivalents at beginning of the financial year</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,481</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,726</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,809</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      gains on cash and cash equivalents</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">59</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash
      and cash equivalents at end of the financial year</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,100</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,932</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,726</font></td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><hr noshade size=2> </td>
    <td align="right" valign="bottom"><hr noshade size=2> </td>
    <td align="left" valign="bottom"><hr noshade size=2> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right" valign="bottom"><hr noshade size=2> </td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The accompanying notes are an integral part of these Consolidated Financial Statements.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The unaudited US dollar amounts are prepared on the basis set out in note 1.
</font></p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p75"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements</font></b></p>
  <p>&nbsp;</p>
<div style="float: left; width: 48%">
  <p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p75a"></a>1.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis
    of preparation</font> <br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Consolidated Financial Statements are prepared in accordance with International
    Financial Reporting Standards (&#147;IFRS&#148;) (including International
    Accounting Standards (&#147;IAS&#148;) and interpretations issued by the International
    Accounting Standards Board (&#147;IASB&#148;) and its committees, and as interpreted
    by any regulatory bodies applicable to the Group as adopted for use in the
    European Union (&#147;EU&#148;), the Companies Act 1985 and Article 4 of the
    IAS Regulations. The Consolidated Financial Statements have been prepared
    in accordance with IFRS, which differs in certain material respects from US
    generally accepted accounting principles (&#147;US GAAP&#148;) &#150; see
    note 38.</font><font size="2"> </font></p>
  <p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The preparation
    of financial statements in conformity with IFRS requires management to make
    estimates and assumptions that affect the reported amounts of assets and liabilities
    and disclosure of contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenue and expenses during the reporting
    period. For a discussion on the Group&#146;s critical accounting estimates
    see &#147;Performance &#150; Critical Accounting Estimates&#148; elsewhere
    in this Annual Report. Actual results could differ from those estimates. The
    estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
    to accounting estimates are recognised in the period in which the estimate
    is revised if the revision affects only that period or in the period of the
    revision and future periods if the revision affects both current and future
    periods. Certain amounts in relation to the previous financial year have been
    reclassified to conform presentation with the requirements of IFRS. </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Amounts in the Consolidated Financial Statements are stated in pounds sterling
(&pound;), the currency of the country in which the Company is incorporated.
The translation into US dollars of the Consolidated Financial Statements as of,
and for the financial year ended, 31 March 2006, is for convenience only and
has been made at the Noon Buying Rate for cable transfers as announced by the
Federal Reserve Bank of New York for customs purposes on 31 March 2006. This
rate was $1.7393: &pound;1. This translation should not be construed as a representation
that the sterling amounts actually represented have been, or could be, converted
into dollars at this or any other
rate.
</font></p>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p75b"></a>2.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant
    accounting policies</font> <br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group&#146;s significant accounting policies are described below.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accounting convention</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Consolidated Financial Statements are prepared on a historical cost basis except for certain financial and equity instruments that have been measured at fair value.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of consolidation</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled, both unilaterally and jointly, by the Company.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accounting for subsidiaries</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A subsidiary
is an entity controlled by the Company. Control is achieved where the Company
has the power to govern the financial and operating policies of an entity so
as to obtain
benefits from its activities.</font> </p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  results of subsidiaries acquired or disposed of during the year are included
  in the income statement from the effective date of acquisition or up to the effective
  date of  disposal, as appropriate. Where necessary, adjustments are made to the
  financial statements of subsidiaries to bring their accounting policies into
  line with those used by other members of the Group.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Minority interests in the net assets of consolidated subsidiaries are identified
separately from
the Group&#146;s equity therein. Minority interests consist of the amount of
those
interests at the date of the original business combination and the minority&#146;s
share of changes in equity since the date of the combination. Losses applicable
to the minority in excess of the minority&#146;s share of changes in equity are
allocated against the interests of the Group except to the extent that the minority
has a binding obligation and is able to make an additional investment to cover
the losses.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business combinations</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The acquisition
  of subsidiaries is accounted for using the purchase method. The cost of the
  acquisition is measured at the aggregate of the fair values, at the date of
  exchange, of assets given, liabilities incurred or assumed, and equity instruments
  issued by the Group in exchange for control of the acquiree, plus any costs
  directly attributable to the business combination. The acquiree&#146;s identifiable
  assets and liabilities are recognised at their fair values at the acquisition
  date.</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
    arising on acquisition is recognised as an asset and initially measured at
    cost, being the excess of the cost of the business combination over the Group&#146;s
    interest in the net fair value of the identifiable assets, liabilities and
    contingent liabilities recognised.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The interest of minority shareholders in the acquiree is initially measured at
the minority&#146;s proportion of the net fair value of the assets, liabilities
and contingent
liabilities recognised.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Previously held identifiable assets, liabilities and contingent liabilities of
the acquired entity are revalued to their fair value at the date of acquisition,
being the date at which the Group achieves control of the acquiree. The movement
in fair value is taken to the asset revaluation surplus.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interests in joint ventures</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial
and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group reports its interests in jointly controlled entities using proportionate
consolidation.
The Group&#146;s share of the assets, liabilities, income, expenses and cash
flows of jointly controlled entities are combined with the equivalent items in
the results on a line-by-line basis.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Any goodwill arising
on the acquisition of the Group&#146;s interest in a jointly controlled entity
is accounted for in accordance with the Group&#146;s accounting policy for goodwill
arising on the acquisition of a subsidiary.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associates</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The results and assets and liabilities of associates are incorporated in the
Consolidated Financial Statements using the equity method of accounting. Under
the equity method, investments in associates are carried in the consolidated
balance sheet at cost as adjusted
for post-acquisition changes in the Group&#146;s share of the net assets of the
associate, less any impairment in the value of the investment. Losses of an associate
in excess of the Group&#146;s interest in that associate are not recognised.
Additional losses are provided for, and a liability is recognised, only to the
extent that the Group has incurred legal or constructive obligations or made
payments on behalf of the associate.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Any excess of the
cost of acquisition over the Group&#146;s share of the net fair value of the
identifiable assets, liabilities and contingent liabilities of the associate
recognised at the date of acquisition is recognised as goodwill. The goodwill
is included within the carrying amount of the investment.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The licences of the
Group&#146;s associated undertaking in the US, Verizon Wireless, are indefinite
lived assets as they are subject to perfunctory renewal. Accordingly they are
not subject to amortisation but are tested annually for impairment, or when indicators
exist that the carrying value is not recoverable.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Goodwill</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
arising on the acquisition of an entity represents the excess of the cost of
acquisition
over the Group&#146;s interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities of the entity recognised at the date of
acquisition. Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is held in
the currency of the acquired entity and revalued to the closing rate at each
balance
sheet date.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Goodwill is not subject to amortisation but is tested for impairment.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Negative goodwill arising on an acquisition is recognised directly in the income
statement.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
On disposal of a subsidiary or a jointly controlled entity, the attributable
amount of goodwill is included in the determination of the profit or loss recognised
in the income
statement on disposal.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Goodwill arising before the date of transition to IFRS, on 1 April 2004, has
been retained at the previous UK GAAP amounts subject to being tested for impairment
at that date. Goodwill written off to reserves under UK GAAP prior to 1998 has
not been reinstated and is not included in determining any subsequent profit
or loss on disposal.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">75</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p76"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font></p>
  <div style="float: left; width: 48%">
  <p><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.</font>&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant
    accounting policies </font></font><font color="#f02015" size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font> <br>
    <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Licence
    and spectrum fees</font></b><font size="2"> <br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licence
    and spectrum fees are stated at cost less accumulated amortisation. The amortisation
    periods range from 3 to 25 years and are determined primarily by reference
    to the unexpired licence period, the conditions for licence renewal and whether
    licences are dependent on specific technologies. Amortisation is charged to
    the income statement on a straight-line basis over the estimated useful lives
    from the commencement of service of the network. </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Computer software</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Computer
software licences are capitalised on the basis of the costs incurred to acquire
and bring into use the specific software. These costs are amortised over their
estimated
useful lives, being 3 to 5 years.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Costs that are directly associated with the production of identifiable and unique
software products controlled by the Group, and that are expected to generate
economic benefits exceeding costs beyond one year, are recognised as intangible
assets. Direct costs include software development employee costs and directly
attributable overheads.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Software integral to a related item of hardware equipment is accounted for as
property, plant and equipment.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Costs associated with maintaining computer software programmes are recognised
as an expense as incurred.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Research and development expenditure</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expenditure
on research activities is recognised as an expense in the period in which it
is incurred.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
An internally-generated
intangible asset arising from the Group&#146;s development activity is recognised
only if all of the following conditions are met:
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
      <td width="3%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">an asset is created that can be separately identified;</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">it is probable that the asset created will generate future economic benefits; and</font></td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the development cost of the asset can be measured reliably.</font></td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Internally-generated intangible assets are amortised on a straight-line basis over their estimated useful lives. Where no internally-generated intangible asset can be recognised,
development expenditure is charged to the income statement in the period in which it is incurred.</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other intangible assets</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
intangible assets with finite lives are stated at cost less accumulated amortisation
and impairment losses. Amortisation is charged to the income statement on a straight-line
basis over the estimated useful lives of intangible assets from the date they
are available for use. The estimated useful lives are as follows:
</font></p>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left" valign="bottom"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Brands</font></td>
    <td width="50%" align="left" valign="bottom"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
      - 10 years </font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom">&nbsp;</td>
    <td align="left" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="left" valign="bottom"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customer
      bases </font></td>
    <td align="left" valign="bottom"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3
      - 8 years </font></td>
  </tr>
</table>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Land and buildings held for use are stated in the balance sheet at their cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Assets in the course of construction are carried at cost, less any recognised
impairment loss. Depreciation of these assets commences when the assets are ready
for their intended
use.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Equipment, fixtures and fittings are stated at cost less accumulated depreciation
and any accumulated impairment losses.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The cost of property, plant and equipment includes directly attributable incremental
costs incurred in their acquisition and installation.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Depreciation is charged so as to write off the cost or valuation of assets, other
than land and properties under construction, using the straight-line method,
over their estimated
useful lives as follows:
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left" valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Freehold buildings</font></td>
   <td width="50%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25 - 50 years</font></td>
</tr>
<tr align="left" valign="bottom">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr align="left" valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Leasehold premises</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the term of the lease</font></td>
</tr>
<tr align="left" valign="bottom">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr align="left" valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equipment, fixtures and fittings</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3 - 10 years</font></td>
</tr>
<tr align="left" valign="bottom">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr align="left" valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Network infrastructure</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3 - 25 years</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
is not provided on freehold land.</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Assets
    held under finance leases are depreciated over their expected useful lives
    on the same basis as owned assets or, where shorter, the term of the relevant
    lease.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The gain or loss arising on the disposal or retirement of an item of property,
plant and equipment is determined as the difference between the sales proceeds
and the carrying amount
of the asset and is recognised in the income statement.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment of assets</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Indefinite lived assets</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
and other assets that have an indefinite useful life are not subject to amortisation
but are tested for impairment annually or whenever there is an indication that
the asset
may be impaired.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
For the purpose of impairment testing, assets are grouped at the lowest levels
for which there are separately identifiable cash flows, known as cash-generating
units. If the recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro-rata on the basis of the carrying amount of each asset
in the unit. An impairment loss recognised for goodwill is not reversed in a
subsequent period.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Property, plant and equipment and finite lived intangible assets</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
each balance sheet date, the Group reviews the carrying amounts of its property,
plant and equipment and finite lived intangible assets to determine whether there
is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or cash-generating
unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in the income statement.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Where an impairment loss subsequently reverses, the carrying amount of the asset
(or cash-generating unit) is increased to the revised estimate of its recoverable
amount, not to exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in the
income statement.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal groups held for sale</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal groups held for sale are stated at the lower of carrying value and fair value less costs to sell.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group revenue
  comprises revenue of the Company and its subsidiary undertakings plus the Group&#146;s
  share of the revenue of its joint ventures and excludes sales taxes and
discounts.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Revenue from mobile telecommunications comprises amounts charged to customers
in respect of monthly access charges, airtime usage, messaging, the provision
of other mobile telecommunications services, including data services and information
provision, fees for connecting users of other fixed line and mobile networks
to the Group&#146;s network, revenue from the sale of equipment, including handsets
and revenue arising from Partner
Market Agreements.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Access charges and airtime used by contract customers are invoiced and recorded
as part of a periodic billing cycle and recognised as revenue over the related
access period, with unbilled revenue resulting from services already provided
from the billing cycle date to the end of each period accrued and unearned revenue
from services provided in periods after each accounting period deferred. Revenue
from the sale of prepaid credit is deferred until such time as the customer uses
the airtime, or the credit
expires.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Other revenue from mobile telecommunications primarily comprises equipment sales,
which are recognised upon delivery to customers, and customer connection revenue.
Customer connection revenue is recognised together with the related equipment
revenue to the extent that the aggregate equipment and connection revenue does
not exceed the fair value of the equipment delivered to the customer. Any customer
connection revenue not recognised together with related equipment revenue is
deferred and recognised over the period in which services are expected to be
provided to the customer.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p77"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width:48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue from data services and information provision is recognised when the Group has performed the related service and, depending on the nature of the service, is recognised either
at the gross amount billed to the customer or the amount receivable by the Group as commission for facilitating the service.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentives are provided to customers in various forms and are usually offered on signing a new contract or as part of a promotional offering.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Where one-off incentives
are provided on connection of a new customer or the upgrade of an existing customer,
revenue representing the fair value of the incentive, relative to other deliverables
provided to the customer as part of the same arrangement, is deferred and recognised
in line with the Group&#146;s performance of its obligations relating to the
incentive.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For equipment sales made to intermediaries, revenue is recognised if the significant risks associated with the equipment are transferred to the intermediary and the intermediary has
no general right of return. If the significant risks are not transferred, revenue recognition is deferred until sale of the handset to an end customer by the intermediary or the expiry of the right of return.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intermediaries are incentivised by the Group to connect new customers and upgrade existing customers. Where such incentives are separable from the initial sale of equipment to an
intermediary, the incentive is accounted for as an expense upon connection, or upgrade, of the customer.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue from other
businesses primarily comprises amounts charged to customers of the Group&#146;s fixed line businesses, mainly in respect of access charges and line usage, invoiced
and recorded as part of a periodic billing cycle</font></font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory is stated at the lower of cost and net realisable value. Cost is determined on the basis of weighted average costs and comprises direct materials and, where applicable,
direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Leasing</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are
classified as operating leases.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease
payments as determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the income statement.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rentals payable under operating leases are charged to the income statement on a straight line basis over the term of the relevant lease. Benefits received and receivable as an
incentive to enter into an operating lease are also spread on a straight line basis over the lease term.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign currencies</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In preparing
  the financial statements of the individual entities, transactions in currencies
  other than the entity&#146;s functional currency are recorded at the rates
  of exchange prevailing on the dates of the transactions. At each balance sheet
  date, monetary items denominated in foreign currencies are retranslated at
  the rates prevailing on the balance sheet date. Non-monetary items carried
  at fair value that are
denominated in foreign currencies are retranslated at the rate prevailing on
  the date when fair value was determined. Non-monetary items that are measured
  in terms of historical cost in a foreign currency are not retranslated.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income statement for the period. Exchange differences
arising on the retranslation of non-monetary items carried at fair value are included in the income statement for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are
recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the purpose of presenting Consolidated Financial Statements, the assets and liabilities of entities with a functional currency other than sterling are expressed in sterling using
exchange rates prevailing on the balance sheet date. Income and expense items and cash flows are translated at the average exchange rates for the period and exchange differences arising are recognised directly in equity. Such translation</font>
</font></p>
</div>
<div style="float: right; width:48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences are recognised in the income statement in the period in which a foreign operation is disposed of.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated accordingly.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In respect of all foreign operations, any exchange differences that have arisen before</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004, the date of transition to IFRS, are deemed to be nil and will be excluded from the determination of any subsequent profit or loss on disposal.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowing costs</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All borrowing costs are recognised in the income statement in the period in which they are incurred.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For defined
  benefit retirement plans, the difference between the fair value of the plan
  assets and the present value of the plan liabilities is recognised as an asset
  or liability on the balance sheet. The Group has early adopted the amendment
  to IAS 19, &#147;Employee Benefits&#148;, issued by the IASB on 16 December
  2004 and applied it from 1 April 2004. Accordingly, actuarial gains and losses
  are taken to the statement of recognised income and expense. For this purpose,
  actuarial gains and losses comprise both the effects of changes in actuarial
  assumptions and experience adjustments arising because of differences between
  the previous actuarial assumptions and what
has actually occurred.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other movements in the net surplus or deficit are recognised in the income statement, including the current service cost, any past service cost and the effect of any curtailment or
settlements. The interest cost less the expected return on assets is also charged to the income statement. The amount charged to the income statement in respect of these plans is included within operating costs or in the Group's share of the results
of equity accounted operations as appropriate.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The values attributed to plan liabilities are assessed in accordance with the advice of independent qualified actuaries.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group's contributions to defined contribution pension plans are charged to the income statement as they fall due.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative actuarial gains and losses as at 1 April 2004, the date of transition to IFRS, have been recognised in the balance sheet.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income tax expense represents the sum of the current tax payable and deferred tax.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current tax payable
or recoverable is based on taxable profit for the year. Taxable profit differs
from profit as reported in the income statement because some items of income
or expense are taxable or deductible in different years or may never be taxable
or deductible. The Group&#146;s liability for current tax is calculated using
UK and foreign tax rates and laws that have been enacted or substantively enacted
by the
balance sheet date.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. It is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the
Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised, based on tax rates that have been enacted or
substantively enacted by the balance sheet date.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they either relate to income
taxes</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p78"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>
<div style="float: left; width:48%">
<p><font size="3">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.</font>&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant accounting policies </font></font><font color="#f02015" size=3
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle the current tax assets and liabilities on a net
basis.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the tax is also recognised directly in
equity.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial instruments<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  assets and financial liabilities, in respect of financial instruments, are
  recognised on the Group&#146;s balance sheet when the Group becomes a party
  to the contractual
provisions of the instrument.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group has applied
the requirements of IFRS to financial instruments for all periods presented and
has not taken advantage of any exemptions available to first time adopters of
IFRS in this respect. The Group has early adopted IFRS 7, &#147;Financial Instruments: Disclosures&#148;, amendments to IAS 39, &#147;Financial Instruments: Recognition and Measurement&#148; and IFRS 4, &#147;Insurance Contracts&#148;, regarding
&#147;Financial Guarantee Contracts&#148; and amendments to IAS 39 regarding &#147;The Fair Value Option&#148; and &#147;Cash Flow Hedge Accounting of Forecast Intragroup Transactions&#148; and
applied them from 1 April 2004.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade receivables</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Estimated irrecoverable
amounts are based on the ageing of the receivable balances and historical experience. Individual trade receivables are written off when management deems them not to be collectible.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the
timeframe established by the market concerned, and are initially measured at cost, including transaction costs.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments are classified as either held for trading or available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading
purposes, gains and losses arising from changes in fair value are included in net profit or loss for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the
security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity, determined using the weighted average costs method, is included in the net profit or loss for the period.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade payables</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade payables are not interest bearing and are stated at their nominal value.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial liabilities and equity instruments</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a
financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities and includes no obligation to deliver cash or other financial
assets. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.</font>
</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capital market and bank borrowings</font></b><font size="2">
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest bearing loans and overdrafts are initially measured at fair value (which is equal to cost at inception), and are subsequently measured at amortised cost, using the effective
interest rate method, except where they are identified as a hedged item in a fair value hedge. Any difference between the proceeds net of transaction costs and the settlement or redemption of borrowings is recognised over the term of the
borrowing.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Equity instruments</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Derivative financial instruments and hedge accounting</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s activities
expose it to the financial risks of changes in foreign exchange rates and interest
rates.</font>
</font></p></div>
<div style="float: right; width:48%">
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The use of financial
derivatives is governed by the Group&#146;s policies approved by the board of directors, which provide written principles on the use of financial derivatives
consistent with the Group&#146;s risk management strategy. Changes in values
of all derivatives of a financing nature are included within investment income
and financing costs in the income statement. The Group does not use derivative
financial
instruments for speculative purposes.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative financial instruments are initially measured at fair value on the contract date, and are subsequently re-measured to fair value at each reporting date. The Group designates
certain derivatives as either:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left">
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#8226;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">hedges
       of the change of fair value of recognised assets and liabilities (&#147;fair value hedges&#148;);
    or</font></td>
</tr>
<tr align="left">
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr align="left">
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#8226;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">hedges of net investments in foreign operations.</font></td>
</tr>
</table>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fair value hedges</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group&#146;s policy
is to use derivative instruments (primarily interest rate swaps) to convert a
proportion of its fixed rate debt to floating rates in order to hedge the interest
rate risk arising, principally, from capital market borrowings. The Group designates
these as fair value hedges of interest rate risk with changes in fair value of
the hedging instrument recognised in the income statement for the period
together with the changes in the fair value of the hedged item due to the hedged
risk, to the extent the hedge is effective. The ineffective portion is recognised
immediately in the income statement.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net investment hedges</font></b><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
differences arising from the translation of the net investment in foreign operations
are
recognised directly in equity. Gains and losses on those hedging instruments
designated as hedges of the net investments in foreign operations are recognised
in equity to the extent that the hedging relationship is effective. These amounts
are included in exchange differences on translation of foreign operations as
stated in
the statement of recognised income and expense. Any ineffectiveness is recognised
immediately in the income statement for the period. Gains and losses accumulated
in the translation reserve are included in the income statement when the foreign
operation is disposed of. The Group has adopted the Amendments to IAS 21, &#147;The Effect of Changes in Foreign Exchange Rates&#148;,
with effect from 1 April 2004, being the date of transition to IFRS for the Group.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation.</font><font size="2">
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions
are measured
at the directors&#146; best estimate of the expenditure required to settle the
obligation at the balance sheet date, and are discounted to present value where
the effect is material.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payments</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  issues equity-settled share-based payments to certain employees. Equity-settled
  share-based payments are measured at fair value (excluding the effect of non
  market-based vesting conditions) at the date of grant. The fair value determined
  at the grant date of the equity-settled share-based payments is expensed on
  a straight-line basis over the vesting period, based on the Group&#146;s estimate
  of the shares that will eventually vest and adjusted for the effect of non
  market-based vesting conditions.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value is measured
using a binomial pricing model which is calibrated using a Black-Scholes framework.
The expected life used in the model has been adjusted, based on
management&#146;s best estimate, for the effects of non-transferability, exercise
restrictions and behavioural considerations.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Advertising costs</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expenditure on advertising is written off in the year in which it is incurred.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p79"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segmental analysis</font>
  <br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Group&#146;s business is principally the supply of mobile telecommunications services and products. Primary segmental information is provided on the basis of geographic regions,
  being the basis on which the Group manages its worldwide interests. Other operations primarily comprise fixed line telecommunications businesses. The segmental analysis is provided for the Group&#146;s
  continuing operations. Revenue is determined by location of assets, which is
  not materially different from revenue by location of customer. Inter-segment
  sales are charged at arms length prices.</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD colspan=5><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
        telecommunications</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD colspan="3"> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        operations</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR align="right">
    <TD>
      <HR noshade size=1>
    </TD>
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    </TD>
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    </TD>
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    </TD>
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</TD>
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    <TD><HR noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3"><HR noshade size=1></TD>
    <TD>&nbsp;    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp;    </TD>
  </TR>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp;</TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp;</TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp;</TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp;</TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp; </font></TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp;</TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp; </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD>&nbsp; </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</FONT><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US</font></font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">mobile</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">functions</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD><font size="1"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT>&nbsp; </font></TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD></TR>
  <TR>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
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    </TD>
    <TD bgcolor="#cccccc">
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      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
        March 2006</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
        revenue</FONT></font></TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,394</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,170</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,615</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,568</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,530</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,277</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,320</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=5% align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">27,616</FONT></B> </TD>
    <TD width="1%" align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equipment
        and other revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">360</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">193</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">380</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">480</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">720</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,133</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,133</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
        revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,754</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,363</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,995</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,048</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,250</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,410</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,320</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,749</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left bgcolor="#cccccc"><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,754</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,995</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,048</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,812</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22,609</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,320</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,929</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left bgcolor="#cccccc"><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
        ventures</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,363</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,470</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,833</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,852</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left bgcolor="#cccccc"><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:
        intra-segment revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common
        functions</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inter-segment
        revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(64</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(44</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(105</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(65</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(121</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(418</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(418</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
        revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,690</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,319</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,890</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,983</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,129</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,137</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,320</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,476</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:
        revenue between mobile and other operations</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(91</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(92</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(34</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(126</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
        revenue</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,599</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,319</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,890</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,983</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,128</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,045</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,286</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,350</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2></TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
        result</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,904</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,928</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,296</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16,870</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16,727</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left bgcolor="#cccccc"><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,904</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">933</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15,305</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15,166</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left bgcolor="#cccccc"><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
        ventures</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,928</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">363</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,565</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,561</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common
        functions</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">215</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">215</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">215</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
        of result in associated undertakings</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">712</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,452</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(24</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,428</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        (loss)/profit</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,904</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,928</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,008</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">223</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,203</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B> </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,084</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating
        income and expense</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment
        income</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">353</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing
        costs</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,120</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss
        before taxation</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
        on loss</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,380</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss
        for the year from continuing operations</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,233</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
        loss</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,904</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,928</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,008</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">223</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,203</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,084</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Add
        back:</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
        losses</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,400</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,600</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">515</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-recurring
        items related to acquisitions and disposals</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(32</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"><B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
        operating profit</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,496</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,672</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">968</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">698</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,732</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,503</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">211</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,280</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</FONT></B></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,399</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc">&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        assets<SUP>(1)</SUP></FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24,360</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,422</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,596</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,743</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,200</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,907</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">84,228</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">754</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">64</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,046</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment
        in associated undertakings</FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,898</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,182</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">37</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,117</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">80</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,197</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        assets<SUP>(1)</SUP></FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">669</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">888</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">443</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">743</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</FONT></B></font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,555</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,377</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">266</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,656</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        segment assets<SUP>(1)</SUP></FONT></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25,029</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,310</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,039</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,486</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"><font size="2"> <B><FONT face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,898</FONT></B> </font></TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,937</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,023</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">111,722</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,020</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">157</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">112,899</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
        non-current assets:</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
        tax assets</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">140</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
        and other receivables</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">231</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
        current assets:</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
        and cash equivalents</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,789</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
        and other receivables</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation
        recoverable</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> &nbsp; &nbsp;<FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Assets
        included in disposal group for resale<SUP>(3)</SUP></FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,592</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=1></TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">
      <HR noshade size=1>
    </TD>
    <TD bgcolor="#cccccc">&nbsp;    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2"> <FONT face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        assets</FONT></font></TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126,738</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD>
      <HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
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    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
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    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
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    </TD>
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    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
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    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc"><HR noshade size=2>
    </TD>
    <TD bgcolor="#cccccc">&nbsp; </TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p80"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.&nbsp;&nbsp;&nbsp;Segmental
    analysis </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right" colspan=5><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      telecommunications</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      operations</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group</font></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">mobile</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">functions</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
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    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
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    <td align="right"><b><font size="1">&nbsp;</font></b></td>
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    <td align="right"><font size="1">&nbsp;</font></td>
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    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align="right"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
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    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
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    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
  <td bgcolor="#cccccc"><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
      liabilities</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(753</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,370</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(914</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(827</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,638</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,458</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,960</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(362</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(26</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td width="5%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,348</font></b></td>
    <td width="1%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
      liabilities:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      taxation liabilities</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,448</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax liabilities</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,670</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other payables</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(219</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term
      borrowings</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,448</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term
      borrowings</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16,750</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Liabilities
      included in disposal group for resale<sup>(3)</sup></font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,543</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      liabilities</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(41,426</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      segment items:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capitalised
      fixed asset additions</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">592</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">541</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">502</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">665</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,456</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">112</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,868</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">129</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,005</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expenditure
      on other intangible assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-cash
      items:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">653</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">398</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">281</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">486</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,113</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,937</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">140</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,079</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation
      of intangible assets</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">514</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">190</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">114</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">438</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">186</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">183</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,625</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,625</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
      of goodwill</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,400</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,600</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">515</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bad
      debt expense</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">39</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">64</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">158</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">168</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based
      payments</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">54</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">107</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">109</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Excluding unallocated items.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Includes additions to property, plant and equipment and computer software, included with intangible assets.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note 29 for information on discontinued operations.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p81"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
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    <td align="right"><font size="1">&nbsp;</font></td>
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    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Continuing</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
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    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" colspan=5><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      telecommunications</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      operations</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">mobile</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">functions</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><b><font size="1">&nbsp;</font></b></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td></tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
      revenue</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,320</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,091</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,963</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,498</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,973</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,845</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24,940</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,610</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%"><font size="2">&nbsp;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equipment
      and other revenue</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">364</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">182</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">298</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">567</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,075</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,075</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,786</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
      revenue</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,684</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,273</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,261</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,065</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,637</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,920</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27,015</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,396</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td bgcolor="#cccccc"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,684</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,261</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,065</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,474</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,484</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,579</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,396</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td bgcolor="#cccccc"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
      ventures</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,273</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,457</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,457</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td bgcolor="#cccccc"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:
      intra-segment revenue</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21</font></td>
    <td bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21</font></td>
    <td bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21</font></td>
    <td bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common
      functions</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inter-segment
      revenue</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(51</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(36</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(80</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(47</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(84</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(303</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(303</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      revenue</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,633</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,237</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,181</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,018</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,553</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,740</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,095</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,835</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,395</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:
      revenue between mobile and</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">other
      operations</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(110</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(111</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(46</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(157</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      revenue</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,523</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,237</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,181</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,018</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,553</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,629</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,049</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,395</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
      result</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,198</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,919</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,983</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td bgcolor="#cccccc"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subsidiaries</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">893</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,920</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,984</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td bgcolor="#cccccc"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Joint
      ventures</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">305</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,999</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,999</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common
      functions</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of result in associated undertakings</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">671</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,025</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,980</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      profit/(loss)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,869</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,859</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating
      income and expense</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment
      income</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">294</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing
      costs</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(880</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit
      before taxation</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">666</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      on profit</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,869</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">436</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit
      for the financial year</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      profit/(loss)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,869</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,859</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Add
      back:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
      losses</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjusted
      operating profit/(loss)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,473</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,694</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">775</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">779</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,354</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,344</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(85</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,334</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,353</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">664</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
      assets</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44,101</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22,768</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,288</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,014</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,443</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">884</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">101,498</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">752</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102,250</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,754</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116,004</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment
      in associated undertakings</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,039</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,096</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">33</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,168</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      assets</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">811</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">844</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">356</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">741</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,301</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,171</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">221</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,392</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,168</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,560</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      segment assets</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44,912</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23,612</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,644</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,755</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,039</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,840</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,035</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">125,837</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">973</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126,876</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,922</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141,798</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
      non-current assets:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax assets</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">364</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
      current assets:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,769</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation
      recoverable</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      assets</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</font></td>
    <td width="3%"><font color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
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<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.&nbsp;&nbsp;&nbsp;Segmental analysis </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
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    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Continuing</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan=5 valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      telecommunications</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td colspan=3 valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      operations</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
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    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td colspan=5><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td colspan=3><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">mobile</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">functions</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><b><font size="1">&nbsp;</font></b></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td valign="bottom"><font size="1">&nbsp;</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><b><font size="1">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><b><font size="1">&nbsp;</font></b></td></tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Segment
      liabilities</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(848</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,237</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(735</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(939</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,295</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,180</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,234</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(364</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="1%"><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,598</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,477</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="5%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9,075</font></td>
    <td width="1%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unallocated
      liabilities:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      taxation liabilities</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,353</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax liabilities</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,849</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term
      borrowings</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,003</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term
      borrowings</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13,190</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other payables</font></font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(79</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      liabilities</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(33,549</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      segment items:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capitalised
      fixed asset additions</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">827</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">538</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">490</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">789</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,333</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,113</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">112</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,225</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">885</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expenditure
      on other intangible assets</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-cash
      items:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">640</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">403</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">253</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">464</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">961</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,732</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">153</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,885</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,114</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation
      of intangible assets</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">514</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">184</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">101</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">468</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,416</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,416</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
      of goodwill</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bad
      debt expense</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">173</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">183</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based
      payments</font></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
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    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
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    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Excluding unallocated items.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Includes additions to property, plant and equipment and computer software, included with intangible assets.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">82</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p83"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
  (loss)/profit<br>
  </font></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
  (loss)/profit has been arrived at after charging/(crediting):</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      foreign exchange gains</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10</font></td>
    <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation
      of property, plant and equipment:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Owned
      assets</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,069</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,871</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Leased
      assets</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation
      of intangible assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,625</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,416</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
      of goodwill</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Research
      and development expenditure</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">206</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">198</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Advertising
      costs</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">670</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">660</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Staff
      costs (see note 34)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,310</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,185</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      lease rentals payable:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Plant
      and machinery</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">35</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      assets including fixed line rentals</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">933</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">873</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss
      on disposal of property, plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own
      costs capitalised attributable to the construction or acquisition of property,
      plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(256</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(250</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2> </td>
    <td bgcolor="#cccccc"><hr noshade size=2> </td>
    <td bgcolor="#cccccc"><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total
  remuneration of the Group&#146;s auditors, Deloitte &amp; Touche LLP, and its
  affiliates for services provided to the Group&#146;s subsidiary undertakings
  is analysed below:</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audit
      fees</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td width="2%" align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audit-related
      fees:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Audit
      regulatory reporting</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Due
      diligence reviews</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      fees</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      fees</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td bgcolor="#cccccc"><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
    <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2> </td>
    <td bgcolor="#cccccc"><hr noshade size=2> </td>
    <td bgcolor="#cccccc"><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total
  remuneration includes &pound;1 million (2005: &pound;1 million) in respect of the Group&#146;s
  discontinued operations in Japan.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the
above, the Group&#146;s joint ventures and associated undertakings paid fees totalling &pound;2 million (2005: &pound;2 million) and &pound;4 million (2005:
&pound;5 million), respectively, to Deloitte &amp; Touche LLP and its affiliates
during the year.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A description of the work performed by the Audit Committee in order to safeguard auditor independence when non audit services are provided is set out in the Corporate Governance
section on page 57. In the year ended 31 March 2006, the Audit Committee pre-approved all services.</font>
</font></p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">83</FONT></td>
  </tr>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p84"></a>
<p><a href="#contents4"><font size="2">Back to Content</font></a></p>
<p><font size="3">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.&nbsp;&nbsp;&nbsp;Investment
  income and financing costs</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Investment income</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Available-for-sale investments:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends received</font></font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans and receivables</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">153</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">201</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value adjustments recognised in the income statement:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivatives - foreign exchange contracts and interest rate futures</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">159</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">353</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">294</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc"><hr noshade size=2></td>
  <td><hr noshade size=2></td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financing costs</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Items in hedge relationships:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other loans</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">510</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">472</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest rate swaps</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(118</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(198</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends on redeemable preference shares</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">48</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value hedging instrument</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">213</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">231</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value of hedged item</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(186</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(213</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other financial liabilities held at amortised cost:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank loans and overdrafts</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other loans</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends on redeemable preference shares</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Potential interest charge on settlement of tax issues</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">329</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">245</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value adjustments recognised in the income statement:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivatives - forward starting swaps</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity put rights and similar arrangements<sup>(1)</sup></font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">161</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finance leases</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc"><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,120</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">880</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net financing costs</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">767</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">586</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
</tr>
<tr>
   <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The fair value adjustments for equity put rights and similar arrangements relates to the Group&#146;s arrangements with Telecom Egypt and it&#146;s minority
partners in the Group&#146;s other operations in Germany. Further information is provided in &#147;Options agreements and similar arrangements&#148; on page 42.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">84</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p85"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font></font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  <font size="2"></font></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit
  before tax is split as follows:</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United Kingdom profit before tax</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">491</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">765</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Overseas (loss)/profit before tax</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15,344</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,520</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total (loss)/profit before tax</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income
       tax expense </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
      Tax on (loss)/profit from continuing operations, as shown
       in the income statement, is as follows:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United Kingdom corporation tax expense/(income) at 30%:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current year</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">169</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">339</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjustments in respect of prior years</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(79</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">154</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">260</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Overseas current tax expense/(income):</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current year</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,077</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,774</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjustments in respect of prior years</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(418</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(154</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,659</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,620</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total current tax expense</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,813</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,880</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax on origination and reversal of temporary differences:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">United Kingdom deferred tax</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">234</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Overseas deferred tax</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">123</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(245</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total deferred tax expense/(income)</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">567</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total tax on (loss)/profit from continuing operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,380</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,869</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
  <td><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax recognised
    directly in equity</font></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
  <td><font size="1">&nbsp;</font></td>
  <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><font size="1">&nbsp;</font></td>
  <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
  <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      tax credit</font></td>
  <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6</font></b></td>
  <td align="left" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
  <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10</font></td>
  <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax credit</font></td>
  <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
  <td align="left" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
  <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(35</font></td>
  <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      tax credited directly to equity</font></td>
  <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17</font></b></td>
  <td align="left" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
  <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
  <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Factors affecting tax expense for the year</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
table below explains the differences between the expected tax expense on continuing
operations, at the UK statutory tax rate of 30% for 2006 and 2005, and the Group&#146;s total
tax expense for each year. Further discussion of the current year tax expense can be found in the section titled &#147;Performance &#150; Operating Results &#150; Group Overview &#150; 2006 financial year compared to 2005 financial year &#150; Taxation.&#148;</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit before tax on continuing operations as shown in the income statement</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,853</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected tax (credit)/ charge on profit from continuing operations at UK statutory tax rate</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,456</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,186</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect of taxation of associated undertakings, reported within operating profit</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">133</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">134</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non deductible impairment losses</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,055</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">143</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
</td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected tax charge at UK statutory rate on profit from continuing operations, before impairment losses and taxation of associates</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,732</font></b></td>
   <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,463</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect of different statutory tax rates of overseas jurisdictions</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">411</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">433</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other expenses not deductible for tax purposes</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">299</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">367</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax on overseas earnings</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(78</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(66</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect of previously unrecognised temporary differences</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(71</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(463</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prior period adjustments</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(470</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(417</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exclude taxation of associated undertakings</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(443</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(448</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total tax expense on (loss)/profit from continuing operations</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,380</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,869</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="1">&nbsp;</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85</FONT></td>
  </tr>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p86"></a>
<p><a href="#contents4">Back to Contents</a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.&nbsp;&nbsp;&nbsp;Taxation
  </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued
  </font><font size="2"
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  <font size="3">Deferred tax</font></font><font size="3"> <br>
  </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analysis
  of movements in net deferred tax balance during the year: </font></p>
</font>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(3,665</b></font></td>
   <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification as held for sale</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(717</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(217</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Charged to the income statement</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(567</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credited to the statement of recognised income and expense</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>8</b></font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Acquisitions and disposals</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(372</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(5,530</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Deferred tax assets and liabilities in respect of continuing operations, before
offset of balances within countries, are as follows:
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      recognised</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
      credited</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">deferred
      tax</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">/(charged)
      in</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
      deferred</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
      deferred</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amounts</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">asset/</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">income</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">tax
      asset</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">tax
      liability</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">unrecognised</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(liability)</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">statement</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accelerated
      tax depreciation</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>155</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(1,702</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(48</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(1,595</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(91</b></font></td>
    <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accelerated
      tax depreciation</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>155</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(1,702</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(48</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(1,595</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(91</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      losses</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>9,565</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(9,191</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>374</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(85</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax on overseas earnings</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(4,025</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(4,025</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(318</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      short term timing differences</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>4,073</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(1,418</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(2,939</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(284</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(73</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>13,793</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(7,145</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(12,178</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(5,530</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(567</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td align="left" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analysed
    in the balance sheet, after offset of balances within countries, as:</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
   <td>&nbsp;</td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
    tax asset</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>140</b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="10%">&nbsp;</td>
</tr>
<tr>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
    tax liability</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(5,670</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(5,530</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      recognised</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
      credited</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Less:</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">deferred
      tax</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">/(charged)
      in</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
      deferred</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
      deferred</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">amounts</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">asset/</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">income</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">tax
      asset</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">tax
      liability</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">unrecognised</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(liability)</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">statement</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accelerated
      tax depreciation</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">293</font></td>
    <td width="2%">&nbsp;</td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,604</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,331</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(175</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      losses</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,248</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,370</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">878</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">69</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax on overseas earnings</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,427</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,427</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(245</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      short term timing differences</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,017</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,065</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,737</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">215</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">362</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,558</font></td>
    <td>&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,096</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11,127</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,665</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td>&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analysed in the balance sheet, after offset of balances within countries, as:</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax asset</font></td>
   <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
   <td width="2%">&nbsp;</td>
   <td width="10%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liability</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,849</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,665</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="right" valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Deferred tax balances at 31 March 2005 above are inclusive of discontinued operations.
The amounts reported for the 2005 income statement are for continuing operations.
Further
deferred tax credits of &pound;35 million for accelerated tax depreciation, &pound;433
million tax losses and &pound;103 million other short term timing differences
are included within amounts related to discontinued operations in the 2005 income
statement.
</font></p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Factors affecting the tax charge in future years<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Factors
that may affect
the Group&#146;s future tax charge include one-off restructuring benefits, the
resolution of open issues, future planning opportunities, corporate acquisitions
and disposals, changes in tax legislation and rates, and the use of brought forward
tax losses.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In particular, the
Group&#146;s subsidiary Vodafone 2 is responding to an enquiry by HM Revenue &amp; Customs
(&#147;HMRC&#148;) with regard to the UK tax treatment of one of its Luxembourg
holding companies under the controlled foreign companies (&#147;CFC&#148;) rules.
Further details in relation to this enquiry are included in note 31 &#147;Contingent
Liabilities&#148;. At 31 March 2006, the Group holds provisions of &pound;1,822
million tax and &pound;276 million interest in respect of the potential UK tax
liability that may arise from this enquiry (2005: &pound;1,600 million tax and &pound;157
million interest). Management considers these amounts are sufficient to settle
any assessments that may result from the enquiry. However, the amount ultimately
paid may differ materially from the amount accrued and, therefore, could affect
the overall profitability of the Group in future periods. In the absence of any
material unexpected developments, the provisions are likely to be reassessed
when the views of the European Court of Justice become known.
</font></p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">86</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p87"></a>
<p><a href="#contents4">Back to Contents</a></p>
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><font color="#ffffff" size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><B>Financials</B></font></td>
  </tr>
  <tr>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
At 31 March 2006, the gross amount and expiry dates of losses available for carry
forward are as follows:
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expiring
      within</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5
      years</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unlimited</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Losses
      for which a deferred tax asset is recognised</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,451</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,452</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Losses
      for which no deferred tax is recognised</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>172</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>31,331</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>31,503</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>173</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>32,782</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>32,955</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Included above are
losses amounting to &pound;1,939 million (2005: &pound;1,870 million) in respect
of UK subsidiaries which are only available for offset against future capital
gains and since it is uncertain whether these losses will be utilised, no deferred
tax asset has been recognised.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The losses above also
include &pound;27,545 million (2005 &pound;20,898 million) that have arisen in
overseas holding companies as a result of revaluations of those companies&#146; investments
for local GAAP purposes. Since it is uncertain whether these losses will be utilised
no deferred tax asset has been recognised.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In addition to the losses described above, the Group has potential tax losses
of &pound;35,250 million (2005: &pound;34,674 million) in respect of a write
down in the value of investments in Germany. These losses have to date been denied
by the German tax authorities. Vodafone is in continuing discussions with them
regarding the availability of the losses, however the outcome of these discussions
and the timing of the resolution are not yet known. The Group has not recognised
the availability of the losses, nor the income statement benefit arising from
them, due to this uncertainty. If upon resolution a benefit is recognised, it
may impact both the amount of current income taxes provided since the date of
initial deduction and the amount of the benefit from tax losses the Group will
recognise. The recognition of these benefits could affect the overall profitability
of the Group in future periods.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group holds provisions in respect of deferred taxation that would arise if
temporary differences on investments in subsidiaries, associates and interests
in joint ventures were to be realised after the balance sheet date. No deferred
tax liability has been
recognised in respect of a further &pound;23,038 million (2005: &pound;15,060
million) of unremitted earnings of subsidiaries, associates and joint ventures
because the Group is in a position to control the timing of the reversal of the
temporary difference and it is probable that such differences will not reverse
in the foreseeable future.
</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.&nbsp;&nbsp;&nbsp;Equity
  dividends</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Declared
      and paid during the financial year:</font></td>
    <td width="8%" bgcolor="#cccccc">&nbsp;</td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final
      dividend for the year ended 31 March 2005: 2.16 pence per share</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2004:
      1.078 pence per share)</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,386</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">728</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interim
      dividend for the year ended 31 March 2006: 2.20 pence per share</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2005:
      1.91 pence per share)</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1,367</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,263</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2,753</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,991</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proposed
      or declared after the balance sheet date and not recognised as a liability:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final
      dividend for the year ended 31 March 2006: 3.87 pence per share</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2005:
      2.16 pence per share)</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2,327</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,386</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">87</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<font size="2"><page>
<a name="p88"></a>
<p><a href="#contents4">Back to Contents</a></p>
</font>
<p><font size="2">
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<p><font size="2">
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/earnings per share</font></font>
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b>Millions</b></font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted
      average number of shares for basic (loss)/earnings per share</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>62,607</b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66,196</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect
      of dilutive potential shares: restricted shares and share options</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">231</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted
      average number of shares for diluted (loss)/earnings per share</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>62,607</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66,427</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/earnings
      for basic and diluted earnings per share</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Continuing
      operations</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(17,318</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,375</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued
      operations</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(4,598</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,035</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(21,916</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,410</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Pence
    per share</b></font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence
    per share</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/earnings per share from continuing operations:</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per share</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(27.66</b></font></td>
   <td width="2%" align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.12</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per share</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(27.66</b></font></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.09</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/earnings per share from continuing and discontinued operations</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">:</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per share</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(35.01</b></font></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.68</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per share</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(35.01</b></font></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.65</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
<tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td>&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&pound;m</b></font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic and diluted (loss)/earnings per share for continuing operations is stated inclusive of the following items:</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses (note 10)</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(23,515</b></font></td>
   <td width="2%" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(475</font></td>
   <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other income and expense</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>15</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of associated undertakings non-operating income (note 14)</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>17</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(2</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes in fair value of equity put rights and similar arrangements (note 5)</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(3)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(161</b></font></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(67</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on the above items</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td>&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td align="right" valign="bottom">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Pence
    per share</b></font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence
    per share</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(37.56</b></font></td>
   <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.72</font></td>
   <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other income and expense</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.02</b></font></td>
   <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of associated undertakings non-operating income</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>0.03</b></font></td>
   <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>&#150;</b></font></td>
   <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.01</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Changes in fair value of equity put rights and similar arrangements</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(3)</sup></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>(0.26</b></font></td>
   <td valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(0.10</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on the above items</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=2></td>
   <td valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td valign="bottom"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
<tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">See note 29 for further information on discontinued operations including the per share effect of discontinued operations.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the year ended 31 March 2006, 183 million shares have been excluded from the calculation of diluted loss per share as they are anti dilutive.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Comprises
       the fair value movement in relation to the potential put rights held by
       Telecom Egypt over its 25.5% interest in Vodafone Egypt and the fair value
       of a financial liability in relation to the minority partners of Arcor,
       the Group&#146;s non-mobile operation in Germany.<br>
      Following the sale of
       16.9% of Vodafone Egypt to Telecom Egypt, the Group signed a shareholder
       agreement with Telecom Egypt setting out the basis under which the Group
       and Telecom Egypt would each contribute a 25.5% interest in Vodafone Egypt
       to a newly formed company to be 50% owned by each party. Within
this shareholder agreement, Telecom Egypt was granted a put option over its entire
       interest in Vodafone Egypt giving Telecom Egypt the right to put its shares
       back to the Group at deemed fair value. In the 2006 financial year, the
       shareholder agreement between Telecom Egypt and Vodafone expired and the
       associated rights and obligations contained in the shareholder agreement
       terminated, including the aforementioned put option. However, the original
       shareholders agreement contained an
obligation on both parties to use reasonable efforts to renegotiate a revised
       shareholder agreement for their direct shareholding in Vodafone Egypt
       on substantially the same terms as the original agreement, which may or
       may not lead to a new agreement containing a put option under the terms
       described above. As of 31 March 2006, the parties have not agreed to abandon
       such efforts and as such the financial liability relating to the initial
       shareholder agreement has been retained in the
Group&#146;s balance sheet as at 31 March 2006. Fair value movements are determined by the reference to the quoted share price of Vodafone Egypt. For the year ended 31 March 2006, a charge of &pound;105
million was recognised.<br>
The capital structure of Arcor provides all partners,
including Vodafone, the right to withdraw capital from 31 December 2026 onwards
and this right in relation to the minority partner has been recognised as a financial
liability. Fair value movements are determined by reference to a calculation
of enterprise value of the partnership. For the year ended 31 March 2006, a charge
of &pound;56 million was recognised.<br>
The valuation of these financial liabilities
is inherently unpredictable and changes in the fair value could have a material
impact on the future results and financial position of
Vodafone.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">88</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page>
<a name="p89"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.&nbsp;&nbsp;&nbsp;Intangible
assets</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licences and</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Computer</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">spectrum fees</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">software</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78,753</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,178</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,432</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96,363</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,519</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">254</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,807</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arising on acquisition</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,239</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">229</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">654</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,122</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additions</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">528</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">654</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(37</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(35</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(72</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81,474</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,787</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,964</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">649</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100,874</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification as held for sale</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,295</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(214</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(36</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(620</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9,165</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">73,179</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,573</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,928</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">91,709</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,291</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">216</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">51</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,580</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arising on acquisition</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,802</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,196</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">699</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,717</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additions</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">616</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">632</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,142</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(43</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,190</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76,130</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,991</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,572</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">755</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97,448</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated impairment losses and amortisation:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">361</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,378</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,739</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation charge for the year</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">926</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">494</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,516</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(35</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(35</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,299</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,858</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,726</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification as held for sale</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(90</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(105</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">475</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,291</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,851</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,621</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">513</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">38</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">588</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation charge for the year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,030</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">493</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">102</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,625</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(979</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(38</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,019</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,524</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,359</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,339</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">108</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,330</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net book value:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,606</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14,632</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,233</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">647</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69,118</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80,999</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,488</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,106</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">555</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97,148</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font> </td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        amortisation
charge for the year includes &pound;100 million in relation to discontinued operations</font> </td>
  </tr>
</table>


<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The net book value at 31 March 2006 and expiry dates of the most significant purchased licences, are as follows:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expiry date</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="center"><hr noshade size=1></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
  <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2020</font></td>
   <td width="2%" align="center"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,165</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2021</font></td>
   <td align="center"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,245</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2></td>
  <td align="right"><hr noshade size=2></td>
  <td align="center"><hr noshade size=2></td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
  <td bgcolor="#cccccc">&nbsp;</td>
</tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p90"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.&nbsp;&nbsp;&nbsp;</font><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
assets</font></font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp; </font><font color="#f02015" size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill,
analysed by reportable segment, is as follows:</font><font color="#f02015" size=2
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">    </font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">mobile</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34,824</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,291</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,523</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,125</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">713</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,237</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78,753</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">941</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">521</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(428</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">274</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">210</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,519</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arising on acquisition</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,200</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,239</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(37</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(37</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35,765</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,812</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,295</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,399</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">713</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,449</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">41</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81,474</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification as held for sale</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,295</font></td>
   <td><font size="2">&nbsp;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,295</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">35,765</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,812</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,399</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">713</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,449</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">73,179</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">595</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">330</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">172</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">192</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,291</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arising on acquisition</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,784</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,802</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,142</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,142</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36,360</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,157</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,571</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">716</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,283</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">43</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76,130</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated impairment losses:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
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   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
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   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
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   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">475</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">475</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange movements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">442</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">82</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">513</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,400</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,600</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">515</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(979</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(979</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
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   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
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   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,842</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,682</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,524</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
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   <td bgcolor="#cccccc"><hr noshade size=2></td>
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   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net book value:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,518</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,475</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,571</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">716</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,283</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">43</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,606</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35,765</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,812</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,295</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,399</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">713</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,974</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">41</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80,999</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
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   <td align="right"><hr noshade size=1></td>
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   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><p><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">90</FONT></p></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p91"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.&nbsp;&nbsp;&nbsp;Impairment<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    following cash-generating units, being the lowest level of asset for which
    there are
    separately identifiable cash flows, have carrying amounts of goodwill that
    are considered
significant in comparison with the Group&#146;s total goodwill balance:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,518</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35,765</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,475</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,812</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,571</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,399</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,295</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">43,564</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">74,271</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Multiple units without significant goodwill</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,042</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,728</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,606</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80,999</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
<tr>
   <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill of &pound;8,295 million relating to the Group&#146;s mobile operations in Japan has been reclassified to assets included in the disposal group held for
sale, following the Group&#146;s announcement of its intention to dispose of its operations in Japan on</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font>&nbsp;<font size=1
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2006.</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In accordance with accounting standards, the Group undertakes an annual test for impairment of its cash generating units. The most recent test was undertaken at 31 January 2006. The
tests in the years ended 31 March 2006 and 2005 were based on value in use calculations.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The impairment losses recognised in the income statement, as a separate line item within operating profit, in respect of goodwill are as follows:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,400</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,600</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other Mobile Operations &#150; Sweden</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">515</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,515</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Germany and Italy<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
carrying value
of goodwill of the Group&#146;s mobile operations in Germany and Italy, with
each representing a reportable segment, has been impaired due to Vodafone having
revised its view of longer term trends for these businesses given certain developments
in the current market environment.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The German market has seen recent intensification in price competition, principally from new market entrants, together with high levels of penetration and continued regulated
reductions in incoming call rates.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In Italy, competitive pressures are increasing with the mobile network operators competing aggressively on subsidies and, increasingly, on price.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The impairment losses were determined as part of the annual test for impairment and were based on value in use calculations using the pre-tax risk adjusted discount rates disclosed on
page 92.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Sweden</font></b><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
impairment of
the carrying value of goodwill of the Group&#146;s mobile operation in Sweden in the years ended 31 March 2006 and 2005 resulted from fierce competition in the
Swedish market combined with onerous 3G licence obligations. Vodafone Sweden forms part of the Group&#146;s
Other Mobile Operations, which is a reportable segment.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prior to its disposal
in the year in the year ended 31 March 2006, the carrying value of goodwill was
tested for impairment at an interim date as increased competition provided an
indicator that the goodwill may have been further impaired. The recoverable amount
of the goodwill was determined as the fair value less costs to sell, reflecting
the announcement on 31 October 2005 that the Group&#146;s 100% interest in Vodafone
Sweden was to be sold for </font></font><font size=2 face="EuroSans-Regular,Arial,Helvetica,sans-serif">&euro;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">953
million (&pound;653 million). The sale completed on 5 January
2006.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the year ended 31 March 2005, the impairment was determined as part of the annual test for impairment and was based on value in use calculations. A pre-tax risk adjusted discount
rate of 9.7% was used in the value in use calculation.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key assumptions used in the value in use calculations</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group prepares and internally approves formal ten year plans for its businesses. For the year ended 31 March 2005, the Group used these plans for its value in use calculations.
The plans included cash flow projections for the mobile businesses which were expected to have growth rates in excess of the long-term average growth rates, beyond an initial five year period, for the markets in which they operate.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the year ended
31 March 2006, the most recent management plans have shown that the need to reflect
a differing growth profile beyond an initial five year period has diminished
in a
number of the Group&#146;s key operating companies as the Group has revised its view of longer term trends. Accordingly, the directors believe it is now appropriate to use projections of five years for its value in use calculations, except in
markets which are forecast to grow ahead of the long term growth rate for the market. At 31 March 2006, the value in use calculation for the Group&#146;s
joint venture in India used a ten year plan reflecting the low penetration of
mobile telecommunications in the country and the expectation of strong revenue
growth throughout the ten year plan.</font>
</font></p>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">91</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p92"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.&nbsp;&nbsp;&nbsp;Impairment
  continued</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The key assumptions
  used in determining the value in use are:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="left" valign="middle">
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Assumption</font></b></td>
    <td colspan="2"><font size="1">&nbsp;</font><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">How
    determined</font></b></td>
  </tr>
  <tr align="left">
    <td valign="top"><hr noshade size=1></td>
    <td width="3%" valign="top"><hr noshade size=1></td>
    <td valign="top"><hr noshade size=1></td>
  </tr>
  <tr align="left" valign="top">
    <td width="21%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted
      EBITDA</font></td>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted
      EBITDA, calculated as adjusted operating profit before depreciation and
      amortisation, has been based on past experience adjusted for the following:</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">voice
      and messaging revenue is expected to benefit from increased usage from new
      customers, the introduction of new services and traffic moving from fixed
      networks to mobile networks, though these factors will be partially offset
      by increased competitor activity, which may result in price declines, and
      the trend of falling termination rates;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">non-messaging
      data revenue is expected to continue to grow strongly as the penetration
      of 3G enabled devices rises and new products and services are introduced;
      and</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">margins
      are expected to be impacted by negative factors such as an increase in the
      cost of acquiring and retaining customers in increasingly competitive markets
      and the expectation of further termination rates cuts by regulators; and
      by positive factors such as the efficiencies expected from the implementation
      of One Vodafone initiatives.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted
      capital expenditure </font></td>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      cash flow forecasts for capital expenditure is based on past experience
      and includes the ongoing capital expenditure required to provide enhanced
      voice and data products and services and to meet the population coverage
      requirements of certain of the Group&#146;s licences. Capital expenditure
      includes cash outflows for the purchase of property, plant and equipment
      and computer software.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long
      term growth rate </font></td>
    <td colspan="2"><font size="2">&nbsp;</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For
      mobile businesses, a long term growth rate into perpetuity has been determined
      as the lower of:</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
      nominal GDP rates for the country of operation; and</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
      long term compound annual growth rate in EBITDA implied by the business
      plan.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For
      non-mobile businesses, no growth is expected beyond management&#146;s plans
      for the initial five year period.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pre-tax
      risk adjusted discount rate </font></td>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      discount rate applied to the cash flows of each the Group&#146;s operations
      is based on the risk free rate for ten year bonds issued by the government
      in the respective market, adjusted for a risk premium to reflect both the
      increased risk of investing in equities and the systematic risk of the specific
      Group operating company. In making this adjustment, inputs required are
      the equity market risk premium (that is the required increased return required
      over and above a risk free rate by an investor who is investing in the market
      as a whole) and the risk adjustment (&#147;beta&#148;) applied to reflect
      the risk of the specific Group operating company relative to the market
      as a whole.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
      determining the risk adjusted discount rate, management have applied an
      adjustment for the systematic risk to each of the Group&#146;s operations
      determined using an average of the beta&#146;s of comparable listed mobile
      telecommunications companies and, where available and appropriate, across
      a specific territory. Management have used a forward looking equity market
      risk premium that takes into consideration both studies by independent economists,
      the average equity market risk premium over the past ten years and the market
      risk premiums typically used by investment banks in evaluating acquisition
      proposals.</font></td>
  </tr>
  <tr align="left">
    <td colspan="3" valign="top"><hr noshade size=1></td>
  </tr>
  <tr align="left">
    <td colspan="3" valign="top">&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      following assumptions have been applied in the value in use calculations
      as follows:</font></td>
  </tr>
</table>
<p>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
    <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pre-tax
      risk adjusted discount rate</font></td>
   <td><font size="1">&nbsp;</font></td>
    <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long
      term growth rate</font></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr>
   <td>&nbsp;</td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
  </tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right">&nbsp;</td>
  </tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
   <td align="right">&nbsp;</td>
  </tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.1</font></b></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.6</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.1</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.7</font></td>
   <td width="2%" align="right">&nbsp;</td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.1</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.2</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.5</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.1</font></td>
   <td align="right">&nbsp;</td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9.0</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.3</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.4</font></td>
   <td align="right">&nbsp;</td>
  </tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
  </tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact of
a reasonably possible change in a key assumption</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For those cash generating units, or the aggregate of cash generating units which are not individually significant, where a reasonably possible change in a key assumption would lead to
an impairment loss, the following provides additional information on the sensitivity of such a change on the recoverable amount.</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr align="right">
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
      by which recoverable amount exceeded the carrying value at 31 January 2006</font></td>
    <td width="8%" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></div></td>
   <td>&nbsp;</td>
   <td align="center"><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></div></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key assumptions:</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted EBITDA</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">0.3</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1.8</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Budgeted capital expenditure</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9.3 to 9.0</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13.4 to 8.5</font></b></td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC">&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Compound annual growth rates in the initial five years of the Group&#146;s approved financial plans.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Range of capital expenditure as a percentage of revenue in the initial five years of the Group&#146;s approved plans.</font></td>
</tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As noted
  above, there has been an impairment loss recognised in the year ended 31 March
  2006 in respect of Germany and Italy, whose carrying values, therefore, equalled
  their respective recoverable amounts at 31 January 2006, the date of the Group&#146;s
  annual impairment test. As a result, any adverse change in key assumption would
  cause a further impairment loss to be recognised.</font></p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">92</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>
<a name="p93"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p> <font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.&nbsp;&nbsp;&nbsp;Property,
  plant and equipment</font> </p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equipment,</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Land
      and</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">fixtures
      and</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Network</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">buildings</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">fittings</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">infrastructure</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><strong><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></strong></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2004</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,193</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,893</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22,759</font></td>
    <td width="2%" align="left"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27,845</font></td>
    <td width="2%" align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(54</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additions</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">125</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,393</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,064</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,582</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(23</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(253</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(368</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(644</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,303</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,071</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,401</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31,775</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification
      as held for sale</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(209</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(201</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,599</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,009</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,094</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,870</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,802</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,766</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">199</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">252</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">462</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arising
      on acquisition</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">404</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">492</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">899</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additions</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">55</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">984</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,350</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,389</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of businesses</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(111)</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(820</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(937</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(67</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(257</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(412</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(736</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassifications</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">306</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(328</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,112</font></b></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,395</font></b></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,336</font></b></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,843</font></b></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td><hr noshade size=2></td>
    <td align="left"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td><hr noshade size=2></td>
    <td align="left"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td><hr noshade size=2></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated
      depreciation and impairment:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2004</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">280</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,060</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,393</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,733</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Charge
      for the year</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">791</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,127</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,999</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(204</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(200</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(413</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td><hr noshade size=1></td>
    <td align="left"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td><hr noshade size=1></td>
    <td align="left"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">356</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,663</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,314</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,333</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification
      as held for sale</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(44</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(101</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,347</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,492</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">312</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,562</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,967</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,841</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">132</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">225</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Charge
      for the year</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">62</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">905</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,112</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,079</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposal
      of businesses</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(75</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(281</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(357</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(26</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(243</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(336</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(605</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassifications</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">306</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(309</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=1>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">353</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,545</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,285</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,183</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      book value:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">759</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,850</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,051</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,660</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">
      <hr noshade size=2>
      </font></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">947</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,408</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,087</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,442</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td height="19"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
  </tr>
</table>
<b></b>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        depreciation
charge for the year includes &pound;1,114 million in relation to discontinued
operations.</font> </td>
  </tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The net book
  value of equipment, fixtures and fittings and network infrastructure includes &pound;2 million and &pound;50 million, respectively (2005: &pound;3 million and &pound;118
  million) in relation to assets held under finance leases (see note 24).</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included in the net
book value of land and buildings, equipment, fixtures and fittings and network
infrastructure are assets in the course of construction, which are not depreciated,
with a cost of &pound;30 million, &pound;290 million and &pound;677 million, respectively (2005: &pound;15 million, &pound;360 million and &pound;837
million).</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowings of &pound;426 million (2005: &pound;327
million) have been secured against property, plant and equipment.</font>
</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">93</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p94"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  continued</font></p>
<p><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.&nbsp;&nbsp;&nbsp;Principal
  subsidiary undertakings</font> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Company had the following subsidiary undertakings carrying on businesses
  which principally affect the profits and assets of the Group. They have the
  same year end date as the Company, unless otherwise stated, and have been included
  in the Consolidated Financial Statements.</font><font size="2"> </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unless otherwise stated,
the Company&#146;s principal subsidiary undertakings all have share capital consisting
solely of ordinary shares and are indirectly held. The country of incorporation
or registration of all subsidiary undertakings is also their principal place
of operation.</font>
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country
      of</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">incorporation</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage</font></td>
    <td align="left"><font size="1"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
  </tr>
  <tr>
    <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Name</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal
      activity</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">or
      registration</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholdings</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arcor
      AG &amp; Co. KG</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td width="25%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed
      line operator</font></td>
    <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73.7</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Albania Sh.A.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Albania</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.9</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Americas Inc.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USA</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Czech Republic a.s.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech
      Republic</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      D2 GmbH</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Egypt Telecommunications S.A.E.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Egypt</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50.1</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Espana S.A.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Europe B.V.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Group Services Limited</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Global
      products and services provider</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">England</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Holding GmbH</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Holdings Europe S.L.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Hungary Mobile Telecommunications Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hungary</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      International Holdings B.V.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Investments Luxembourg S.a.r.l.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luxembourg</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Ireland Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ireland</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      K.K.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97.7</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Libertel N.V.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.9</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">England</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Malta Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Malta</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Marketing S.a.r.l.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provider
      of Partner Network services</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Luxembourg</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Network Pty Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Australia</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      New Zealand Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New
      Zealand</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone-Panafon
      Hellenic Telecommunications Company S.A.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greece</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.8</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Portugal-Comunica&ccedil;&otilde;es Pessoais, S.A.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Portugal</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Romania S.A.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)(8)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Romania</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
<tr>
   <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rounded to nearest tenth of one percent.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Arcor AG &amp; Co. KG is a partnership and, accordingly, its share capital is comprised solely of partners&#146; capital rather than share capital.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Romania S.A., Vodafone Albania Sh.A. and Vodafone Holding GmbH have a 31 December year end. Accounts are drawn up to 31 March 2006 for inclusion in the
Consolidated Financial Statements.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share capital consists of 597,379,729 ordinary shares and 1.65 million class D and E redeemable preference shares, of which 100% of the ordinary shares are held by
the Group.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 1 February 2006, Oskar Mobil a.s. changed its name to Vodafone Czech Republic a.s.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The entire issued share capital of Vodafone Group Services Limited is held directly by Vodafone Group Plc.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 27 April 2006, the Group disposed of its 97.7% interest in Vodafone K.K. to a wholly-owned subsidiary of SoftBank Corporation.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 18 April 2006, MobiFon S.A. changed its name to Vodafone Romania S.A.</font></td>
</tr>
</table>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p95"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13.&nbsp;&nbsp;&nbsp;Investments
  in joint ventures </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  Principal joint ventures</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unless otherwise
  stated, the Company&#146;s principal joint ventures all have share capital consisting
  solely of ordinary shares, which are indirectly held, and the country of incorporation
  or registration is also their principal place of operation. The accounts of
  the joint ventures are drawn up to 31 March 2006 for inclusion in the Consolidated
  Financial Statements. Summarised financial information of joint ventures is
  disclosed in note 37.</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country
      of</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">incorporation</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage</font><font size="1"><sup></sup></font></td>
    <td><font size="1"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Name</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal
      activity</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">or
      registration</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholdings</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bharti
      Airtel Limited</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td width="30%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network and fixed line operator</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">India</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.0</font><font size="2"><sup></sup></font></td>
    <td width="2%"><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Polkomtel
      S.A.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Poland</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.6</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Safaricom
      Limited</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Kenya</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35.0</font><font size="2"><sup></sup></font></td>
    <td><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodacom
      Group (Pty) Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South
      Africa</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Fiji Limited</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fiji</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">49.0</font><font size="2"><sup></sup></font></td>
    <td><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup>&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      Omnitel N.V.</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Netherlands</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76.9</font><font size="2"><sup></sup></font></td>
    <td><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></sup>&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
  <tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rounded
      to nearest tenth of one percent.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
      28 April 2006, Bharti Tele-Ventures Limited changed its name to Bharti Airtel
      Limited.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      Group holds substantive participating rights which provide it with a veto
      over the significant financial and operating policies of these entities
      and which ensure it is able to exercise joint control over these entities
      with the respective majority shareholder.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Latest
      statutory financial statements were drawn up to 31 December 2005.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      Group also holds two non-voting shares.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      principal place of operation of Vodafone Omnitel N.V. is Italy.</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      Group considered the existence of substantive participating rights held
      by the minority shareholder which provide that shareholder with a veto right
      over the significant financial and operating policies of Vodafone Omnitel
      N.V. and determined that, as a result of these rights, the Group does not
      have control over the financial and operating policies of Vodafone Omnitel
      N.V., despite the Group&#146;s 76.9% ownership interest.</font></td>
  </tr>
</table>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect
  of proportionate consolidation of joint ventures</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following
  presents, on a condensed basis, the effect of including joint ventures in the
  Consolidated Financial Statements using proportionate consolidation:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,756</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,423</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost
      of sales</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,832</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,805</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
      profit</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,924</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,618</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling
      and distribution expenses</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(251</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(230</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Administrative
      expenses</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(634</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(389</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment
      losses</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,600</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      (loss)/profit</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,561</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,999</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      financing costs</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">27</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit
      before tax</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,534</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,063</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      on (loss)/profit</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(711</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(782</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit
      for the financial year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,245</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,281</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
      <hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,985</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,925</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property,
      plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,506</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,951</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      non-current assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">27</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">470</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,518</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24,346</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,345</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,931</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      current assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,148</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,013</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,493</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,944</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,011</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,290</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
      <hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,059</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,583</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      non-current liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">535</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">363</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,594</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,946</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      equity shareholders&#146; funds</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,402</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27,340</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
      interests</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      equity and liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,011</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,290</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
      <hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p96"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>


<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  continued</font></p>
<p><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14.&nbsp;&nbsp;&nbsp;Investments
  in associated undertakings</font></font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  principal associated undertakings all have share capital consisting solely of
  ordinary shares, unless otherwise stated, and are all indirectly held. The country
  of incorporation or registration of all associated undertakings is also their
  principal place of operation. The accounts of the associated undertakings are
  drawn up to 31 March 2006 for inclusion in the Consolidated Financial Statements.
  The latest statutory financial statements of the associated undertakings were
  drawn up to 31 December 2005. Summarised financial information of associated
  undertakings is disclosed in note 37. </font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage</font></td>
    <td align="left"><font size="1"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country
      of</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholding/</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">incorporation
      or</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">partnership</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Name</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal
      activity</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">registration</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">interest</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Belgacom
      Mobile S.A.</font></td>
    <td width="30%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Belgium</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.0</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cellco
      Partnership</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">USA</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Soci&eacute;t&eacute;
      Fran&ccedil;aise du Radiot&eacute;l&eacute;phone S.A.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network and fixed line operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">France</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Swisscom
      Mobile A.G.</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      network operator</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Switzerland</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.0</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
    <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rounded to nearest tenth of one percent.</font></td>
</tr>
<tr>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
    <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cellco
      Partnership trades under the name Verizon Wireless. The registered or principal
      office of the partnership is 180 Washington Valley Road, Bedminster, New
      Jersey 07921, USA.</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  share of the aggregated financial information of equity accounted associated
  undertakings is set out below:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,480</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,546</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating
      profit</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,133</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,668</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating
      income and expense</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      interest</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(227</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(197</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax
      on profit</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(443</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(448</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
      interest</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(52</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of result in associated undertakings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,428</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,980</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,055</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,739</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,183</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,331</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of total assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">31,238</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28,070</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,141</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,476</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,468</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,938</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
      interests</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">432</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">422</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of total liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,041</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,836</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
      of net assets in associated undertakings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,197</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right"> <hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p96a"></a>15.&nbsp;&nbsp;&nbsp;Other
  investments</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments
  comprise the following, all of which are available-for-sale:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Listed
      securities:</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity
      securities</font></font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,938</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,117</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unlisted
      securities:</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity
      securities</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Public
      debt and bonds</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      held in restricted deposits</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">154</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,119</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,181</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The fair
  values of listed securities are based on quoted market prices, and include the
  Group&#146;s 3.3% investment in China Mobile (Hong Kong) Limited, which is listed
  on the Hong Kong and New York stock exchanges and incorporated under the laws
  of Hong Kong. China Mobile (Hong Kong) Limited is a mobile network operator
  and its principal place of operation is China.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Unlisted
  equity securities are recorded at cost, as their fair values cannot be reliably
  measured as there is no active market upon which they are traded.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For all
  other unlisted securities, the carrying amount approximates the fair value.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total
  unrealised gain in respect of listed securities was &pound;1,080 million (2005:
  &pound;330 million).</font> </p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p97"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.&nbsp;&nbsp;&nbsp;Inventory</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left><font size="1">&nbsp;</font> </TD>
    <TD align=right> <B><FONT size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</FONT></B>
    </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD align=right> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</FONT>
    </TD>
    <TD align=left><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="1">&nbsp;</font> </TD>
    <TD align=right> <B><FONT size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#163;m</FONT></B>
    </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD align=right> <FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#163;m</FONT>
    </TD>
    <TD align=left><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR>
    <TD> <HR noshade size=1> </TD>
    <TD align="right" bgcolor="#cccccc">
<HR noshade size=1> </TD>
    <TD bgcolor="#cccccc">
<HR noshade size=1> </TD>
    <TD align="right"><HR noshade size=1> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR>
    <TD><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goods
      held for resale</font><font size="2">&nbsp; </font></TD>
    <TD width="8%" align="right" bgcolor="#cccccc"><B><FONT size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">297</FONT></B></TD>
    <TD width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></TD>
    <TD width="8%" align="right"><FONT size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">440</FONT></TD>
    <TD width="2%"><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD><hr noshade size=2></TD>
    <TD align="right" bgcolor="#cccccc">
<hr noshade size=2></TD>
    <TD bgcolor="#cccccc">
<hr noshade size=2></TD>
    <TD align="right"><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
  </TR>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory is reported net of allowances for obsolescence, an analysis of which is as follows:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 1
      April</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">121</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">189</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer
      in respect of discontinued operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(40</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      charged/(credited) to the income statement</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(64)</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31
      March</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost of
  sales includes amounts related to inventory amounting to &pound;3,662 million
  (2005: &pound;3,205 million).</font> </p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p97a"></a>17.&nbsp;&nbsp;&nbsp;Trade
  and other receivables</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
      within non-current assets:</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      receivables</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">37</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      receivables</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepayments
      and accrued income</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
      financial instruments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">231</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">364</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">361</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">585</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
      within current assets:</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      receivables</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,462</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,802</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      owed by associated undertakings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      receivables</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">399</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">396</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prepayments
      and accrued income</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,486</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,900</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
      financial instruments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,438</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,164</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s trade receivables are stated after allowances for bad and doubtful debts, an analysis of which is as follows:</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 1
      April</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">474</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">441</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transfer
      in respect of discontinued operations</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(41</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      charged to administrative expenses</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">168</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">222</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      receivables written off</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(174</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(194</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td align="right"> <hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31
      March</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">431</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">474</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Concentrations
  of credit risk with respect to trade receivables are limited due to the Group&#146;s
  customer base being large and unrelated. Due to this, the directors believe
  there is no further credit risk provision required in excess of the allowance
  for bad and doubtful debts.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The carrying
  amounts of trade and other receivables approximate their fair value. Trade and
  other receivables are predominantly non-interest bearing.</font> </p>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">97</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
      to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.&nbsp;&nbsp;&nbsp;Trade
      and other receivables<font size="2"> </font></font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
within &#147;Derivative financial instruments&#148; is the following:</font><font size="2">&nbsp; </font></td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value through the income statement:</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest rate swaps</font></font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign exchange swaps</font></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Option contracts</font></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other derivatives</font></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">50</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value hedges:</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest rate swaps</font></font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">260</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">365</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">310</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">408</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The fair values of these financial instruments are calculated by discounting the future cash flows to net present values using appropriate market interest and foreign currency rates
prevailing at the year end.</font></font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p98"></a>18.&nbsp;&nbsp;&nbsp;Cash
    and cash equivalents</font> </td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td align="right"><font size="1">&nbsp;</font></td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash at bank and in hand</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">948</font></b></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">343</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Money market funds</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,841</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,708</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Repurchase agreements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">206</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Commercial paper</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">512</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents as presented in the balance sheet</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,789</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,769</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank overdrafts</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(18</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43)</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents of discontinued operations (note 29)</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">161</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents as presented in the cash flow statement</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,932</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,726</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank balances and money market funds comprise cash held by the Group on a short-term basis with original maturity of three months or less. The carrying amount of these assets
approximates their fair value.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All commercial paper and repurchase agreements have a maturity of less than three months and the carrying value approximates the fair value.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All repurchase agreements represent fully collateralised bank deposits.</font>
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p98a"></a>19.&nbsp;&nbsp;&nbsp;Called
       up share capital</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Number</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Authorised:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary shares of US$0.10 each</font></td>
   <td width="12%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78,000,000,000</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,875</font></b></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="12%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78,000,000,000</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,875</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary shares allotted, issued and fully paid:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">68,380,866,539</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,286</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,263,933,048</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,280</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allotted during the year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">120,466,245</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116,933,491</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancelled during the year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,250,000,000</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(128</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">66,251,332,784</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,165</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,380,866,539</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1) </font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
        31 March 2006, the Group held 6,132,757,329 (2005: 3,814,233,598) treasury
        shares with a nominal value if &pound;353 million (2005: &pound;205 million).
        The market value of shares held is &pound;7,390 million (2005: &pound;5,359
    million).</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allotted during the year</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Nominal</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net proceeds</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK share awards and option scheme awards</font></td>
   <td width="10%" align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">85,744,935</font></td>
   <td width="2%" align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
   <td width="2%" align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</font></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US share awards and option scheme awards</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34,721,310</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total for share option schemes and restricted stock awards</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120,466,245</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">159</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
<tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancelled during the year<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the year 2,250,000,000 (2005: nil) treasury shares were cancelled in order to comply with Companies Act 1985 requirements in relation to the amount of issued share capital that
can be held in treasury.</font></p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p99"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.&nbsp;&nbsp;&nbsp;Share-based
payments<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company currently uses a number of equity settled share plans to grant options and shares to its directors and employees.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share options<br>
</font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone Group savings related and Sharesave schemes</font></b><br>
<font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Vodafone Group 1998 Sharesave Scheme (the &#147;Sharesave Scheme&#148;) enables UK staff to acquire shares in the Company through monthly savings of up to &pound;250 a year over a
three or five year period, at the end of which they also receive a tax free bonus. The savings and bonus may then be used to purchase shares at the option price, which is set at the beginning of the savings contract and usually at a discount of 20%
to the then prevailing market price of the Company&#146;s shares. Invitations
to participate in this scheme are usually made annually.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone Group executive schemes</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company has a number of discretionary share option plans, under which awards are no longer made. The current share options plans in place are the Vodafone Group 1998 Company Share
Option Scheme and Vodafone Group 1988 Executive Share Option Scheme (which are UK HM Revenue and Customs approved) and the Vodafone Group 1998 Executive Share Option Scheme and the Vodafone 1988 Share Option Scheme (which are unapproved). Options
under discretionary schemes are subject to performance conditions. Options are normally exercisable between three and ten years from the date of grant.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone Group 1999 Long Term Stock Incentive Plan and ADSs</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Vodafone Group Plc 1999 Long Term Stock Incentive Plan is a discretionary plan under which both share option grants and share awards may be made. For grants made to US employees,
prior to 7 July 2003 the options have phased vesting over a four year period and are exercisable in respect of ADSs. For grants made after 6 July 2003, options are normally exercisable between three and ten years from the date of grant, subject to
the satisfaction of predetermined performance conditions and are exercisable in respect of ordinary shares listed on the London Stock Exchange, or ADSs for US employees. </font></font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other share option schemes</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
option schemes are operated by certain of the Group&#146;s subsidiary and associated
undertakings, under which options are only issued to key personnel. </font></font></p>
</div>
<div style="float: right; width: 48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share plans<br>
</font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share Incentive Plan</font></b><font size="2">
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Share Incentive Plan enables UK staff to acquire shares in the Company through
monthly purchases
of up to &pound;125 per month or 5% of salary, whichever is lower. For each share
purchased by the employee, the Company provides a free matching share.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the
above, all permanent employees at 1 April 2005 received an award of 320 shares
(2005: 350) (known as "All Shares") in Vodafone Group Plc on 1 July 2005</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5 July 2004), under the Vodafone Group Plc Global All Employee Share Plan. The awards vest after two years and are not subject to performance conditions other than continued
employment.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Restricted share plans</font></b>
<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under the Vodafone Group Short Term Incentive Plan, introduced in 1998, shares are conditionally awarded to directors based on achievement of one year performance targets. Release of
the shares is deferred for a further two years and is subject to continued employment. Additional shares are released at this time if a further performance condition has been satisfied over the two year period.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under the Vodafone Group Long Term Incentive Plan and the Vodafone Group Plc 1999 Long Term Stock Incentive Plan referred to above, awards of performance shares are granted to
directors and certain employees. The release of these shares is conditional upon achievement of performance targets measured over a three year period.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under these restricted share plans, the maximum aggregate number of ordinary shares which may be issued in respect of options or awards will not (without shareholder approval)
exceed:</font>
</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a.</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which
have been allocated in the preceding ten year period under all plans; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">b.</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which
have been allocated in the preceding ten year period under all plans other than the Sharesave Scheme and the Vodafone Group Plc All Employee Share Plan.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p100"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
      to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
  <td colspan="8"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.&nbsp;&nbsp;&nbsp;Share-based
      payments </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued<br>
</font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movements in
ordinary share options and ADS options outstanding </font></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="center">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td colspan=4><font size="1">&nbsp;&nbsp;&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ADS</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td colspan="4"><font size="1">&nbsp;&nbsp;&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td colspan=4><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
   <td colspan="4"><hr noshade size=1>
   </td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Millions</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Millions</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,123</font></b></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Granted during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">64</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Forfeited during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(40</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(61</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercised during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(325</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(60</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expired during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(35</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">787</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,123</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2></td>
  <td align="right"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td align="right"><hr noshade size=2>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted average exercise price:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
   <td align="center"><b></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$24.49</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="center">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$23.36</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.25</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.16</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Granted during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.35</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.17</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Forfeited during the year</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="center">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$28.52</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.46</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.43</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercised during the year</font></td>
   <td align="center"><b></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$15.08</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="center">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$16.75</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.93</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;0.94</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expired during the year</font></td>
   <td align="center"><b></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$36.83</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.83</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
   <td align="center"><b></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$26.53</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="center">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$24.49</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.32</font></b></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.25</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
   <td colspan=9><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Summary of options outstanding and exercisable at 31 March 2006</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td colspan="5" align="right"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Outstanding</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td colspan="5" align="right"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercisable</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td colspan="5" align="right"><hr noshade size=1>
   </td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td colspan="5" align="right"><hr noshade size=1>
   </td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Outstanding</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">remaining</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercisable</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">remaining</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contractual life</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">exercise</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">contractual life</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">price</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Months</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">price</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Months</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group Savings Related and Sharesave Scheme:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;0.01 &#150; &pound;1.00</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.84</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.01 &#150; &pound;2.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.10</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">39</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.93</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group Executive Schemes:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.01 &#150; &pound;2.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.58</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.58</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;2.01 &#150; &pound;3.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.75</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.75</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">50</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.34</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">42</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">50</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.34</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">42</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group 1999 Long Term Stock Incentive Plan:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;0.01 &#150; &pound;1.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">227</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.91</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">75</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">227</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.91</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">75</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.01 &#150; &pound;2.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">446</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.39</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">213</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.56</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">60</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;2.01 &#150; &pound;3.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.92</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.92</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">685</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.26</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">452</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.27</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">66</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other Share Option Plans:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;0.01 &#150; &pound;1.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.73</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;0.73</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.01 &#150; &pound;2.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.37</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">37</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.47</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;2.01 &#150; &pound;3.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.17</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;2.17</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">25</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.45</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.54</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">32</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group 1999 Long Term Stock Incentive Plan:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$10.01 &#150; $20.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$13.96</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">$20.01 &#150; $30.00</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$21.60</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">53</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$22.55</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Greater
    than $30.01</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$42.59</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$42.59</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td align="right"><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td align="right" bgcolor="#CCCCCC"><hr noshade size=1>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$26.49</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">44</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$35.20</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
  <tr>
    <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><hr noshade size=2>
  </td>
  <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p101"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>
<font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movements in non-vested shares during the year ended 31 March 2006 is as follows:</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All Shares</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
   <td align="right"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average fair</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average fair</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average fair</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value at grant</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value at grant</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value at grant</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Millions</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">date</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.11</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">103</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.07</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">122</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.08</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Granted</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.27</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">73</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.22</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">92</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.23</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vested</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.12</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.04</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.04</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Forfeited</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.19</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.02</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.04</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">35</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.19</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">141</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.16</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">176</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.17</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
</table>

<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair
      value</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ADS
      Options</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary
      Share Options</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right">&nbsp;
    <td align="right"><hr noshade size=1>
    <td align="right"><hr noshade size=1>
    <td align="right"><hr noshade size=1>
    <td align="right"><hr noshade size=1>
    <td colspan=3 align="right"><hr noshade size=1> </td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board
      of directors and</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan=3 align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and
      Executive Committee</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1> </td>
    <td align="right">&nbsp; </td>
    <td colspan=3 align="right"><hr noshade size=1> </td>
    <td align="right">&nbsp; </td>
    <td align="right"><hr noshade size=1>
    <td align="right"><hr noshade size=1>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right">&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=1> </td>
    <td><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      life of option (years)</font></td>
    <td width="9%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8
      &#150; 9</font></b></td>
    <td width="2%" align="right" bgcolor="#CCCCCC">&nbsp;</td>
    <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6
      &#150; 7</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6
      &#150; 7</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5
      &#150; 6</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8
      &#150; 9</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6
      &#150; 7</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      share price volatility</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17.9
      &#150;18.9%</font></b></td>
    <td align="right" bgcolor="#CCCCCC">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.6
      &#150; 26.6%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17.6
      &#150;18.6%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.3
      &#150; 25.3%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17.9
      &#150;18.9%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.6
      &#150; 26.6%</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividend
      yield</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8
      &#150; 3.2%</font></b></td>
    <td align="right" bgcolor="#CCCCCC">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.7
      &#150; 2.1%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.6
      &#150; 3%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.7
      &#150; 2.1 %</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8
      &#150; 3.2%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.7
      &#150; 2.1%</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk
      free rates</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.2%</font></b></td>
    <td align="right" bgcolor="#CCCCCC">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.1%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.2%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.2%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.2%</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.1%</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exercise
      price</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.36</font></b></td>
    <td align="right" bgcolor="#CCCCCC">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.40</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.45</font></b></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.40</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;1.36</font></b></td>
    <td align="right" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;1.40</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td bgcolor="#CCCCCC"><hr noshade size=2> </td>
    <td><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The fair value of the options is estimated at the date of grant using a lattice-based option valuation model (i.e. binomial model) that uses the assumptions noted in the above table.
  Lattice-based option valuation models incorporate ranges of assumptions for inputs and those ranges are disclosed above. The executive options have a market based performance condition attached and hence the assumptions are disclosed
  separately.</font><font size="2">
  </font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group uses historical data to estimate option exercise and employee termination within the valuation model; seperate groups of employees that have similar historical exercise
behaviour are considered separately for valuation purposes. The expected life of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the
range given above results from certain groups of employees exhibiting different behaviour. Expected volatilities are based on implied volatilities as determined by a simple average of no less than three international banks excluding the highest and
lowest numbers. The risk-free rates for periods within the contractual life of the option are based on the UK gilt yield curve in effect at the time of grant. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares used for the
Group&#146;s employee incentive plans can be newly issued shares, shares held
in treasury or market purchased shares either through the Company's employee
benefit trust or direct from the market or a combination of sources. The source
of the shares is determined by the Company having regard to what is considered
the most efficient source at the relevant time.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Some share awards
have an attached market condition, based on Total Shareholder Return (&#147;TSR&#148;), which is taken into account when calculating fair value of the share awards.
The valuation methodology for the TSR was based on Vodafone&#146;s ranking within
the same group of companies (where possible) over the past 10 years. The volatility
of the ranking over a three year period was used to determine the probability
weighted percentage number of shares that could be expected to vest and hence
affect fair value.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other information<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The weighted
  average grant-date fair value of options granted during the year 2006 was &pound;0.30 (2005: &pound;0.34).
  The total intrinsic value of options exercised during the year
ended</font><font size="2">
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
March 2006 was &pound;164 million (2005: &pound;28 million). The aggregate intrinsic value of fully vested share options outstanding at the year end was &pound;68 million and the
aggregate intrinsic value of fully vested share options exercisable at the year end was &pound;58 million. Cash received from the exercise of options under share options schemes was &pound;356 million and the tax benefit realised from options
exercised during the annual period was &pound;24 million.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total fair value
of shares vested during the year ended 31 March 2006 was &pound;18 million (2005: &pound;5
million). </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The compensation cost
that has been charged against income in respect of share options and share plans
for continuing operations was &pound;109 million (2005: &pound;130 million),
which is comprised entirely of equity-settled transactions. Including discontinued operations, the compensation cost charged against income in respect of share options and share plans in total was &pound;114 million (2005: &pound;137 million). The
total income tax benefit recognised in the consolidated income statement was &pound;50 million (2005: &pound;17 million). Compensation costs capitalised during the years ended 31 March 2006 and 31 March 2005 were insignificant. As of 31 March 2006,
there was &pound;162 million of total compensation cost relating to non-vested
awards not yet recognised, which is expected to be recognised over a weighted
average period of two years.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">No cash was used to settle equity instruments granted under share-based payment schemes.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The average share price for the financial year was 136 pence.</font>
</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">101</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p102"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.&nbsp;&nbsp;&nbsp;Transactions
  with equity shareholders</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">redemption</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additional paid</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">account</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">held</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">in capital</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,154</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,136</font></td>
   <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,950</font></td>
   <td width="2%" align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Issue of new shares</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(28</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase of own shares</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,997</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares released on vesting of share awards</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payment charge, inclusive of tax credit of &pound;22 million</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">159</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,284</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,121</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100,081</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Issue of new shares</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">152</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(44</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase of own shares</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,500</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares released on vesting of share awards</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">370</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancellation of own shares held</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,053</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payment charge, inclusive of tax credit of &pound;9 million</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">123</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,444</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,198</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100,152</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr valign="bottom">
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
</table>

<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td colspan=11><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p102a"></a>22.&nbsp;&nbsp;&nbsp;Movements in accumulated other recognised income and expense</font></td>
  </tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Available-for-sale</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Translation</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pensions</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">investments</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Asset revaluation</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">surplus</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
   <td width="2%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%" align="left"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
   <td width="2%" align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gains/(losses) arising in the year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,521</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(102</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">106</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,525</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax effect</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,521</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(79</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">339</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,781</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gains/(losses) arising in the year</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,486</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(43</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">710</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">112</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,265</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign exchange recycled on business disposal</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax effect</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,043</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(109</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,044</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">112</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,090</font></b></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
</tr>
</table>
<br>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p102b"></a>23.&nbsp;&nbsp;&nbsp;Movements in retained losses</font></td>
   <td>&nbsp;</td>
   <td align="left">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">
    <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(39,511</font></b></td>
   <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43,930</font></td>
   <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,916</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,410</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends (note 7)</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,753</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,991</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss on issue of treasury shares</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(123</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancellation of shares</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,053</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td align="left" bgcolor="#CCCCCC">
    <hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(67,356</font></b></td>
   <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(39,511</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td align="left" bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="left">&nbsp;</td>
</tr>
<tr>
</table>
<br>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p102c"></a>24.&nbsp;&nbsp;&nbsp;Borrowings</font></td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial liabilities measured at amortised cost:</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank loans</font></font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">58</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,414</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,472</font></b></td>
   <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,214</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,241</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank overdrafts</font></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Redeemable preference shares</font></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">845</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">845</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finance lease obligations</font></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">68</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">75</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bonds</font></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,928</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,928</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">906</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">906</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other liabilities</font></font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,840</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">295</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,135</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,640</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">202</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,842</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans in fair value hedge relationships</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,525</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,143</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,668</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">282</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,893</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,175</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td bgcolor="#CCCCCC"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,448</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,750</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,198</font></b></td>
   <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,003</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,190</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,193</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td bgcolor="#CCCCCC"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p103"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Maturity of borrowings</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The maturity
profile of the Group&#146;s non-derivative financial liabilities, using undiscounted
cash flows and which, therefore, differs to both the carrying value and fair
value,
is as follows:</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Redeemable</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finance</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans
      in fair</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">preference</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">lease</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value
      hedge</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">loans</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">obligations</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bonds</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">liabilities</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">relationships</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC">
<hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Within
      one year</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">58</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">167</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,858</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,164</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,308</font></b></td>
    <td width="2%" align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In one
      to two years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,044</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">295</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,521</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,956</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In two
      to three years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">936</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,187</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,219</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In three
      to four years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">39</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">55</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,548</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,702</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In four
      to five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,290</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">55</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">267</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,671</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more
      than five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,387</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">42</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,375</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,428</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,245</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,472</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,632</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">97</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,632</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,153</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,115</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,101</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect
      of discount/financing rates</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(730</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(22</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(704</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,447</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,903</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,472</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">75</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,928</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,153</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,668</font></b></td>
    <td align="left" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,198</font></b></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="right" bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td align="left" bgcolor="#CCCCCC">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size="2">&nbsp;</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Within
      one year</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,683</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">590</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,409</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In one
      to two years</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,176</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">192</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,143</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,620</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In two
      to three years</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,488</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,600</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In three
      to four years</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,056</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,167</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In four
      to five years</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,619</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,742</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more
      than five years</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,323</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">76</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,196</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,806</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,422</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,241</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,548</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">173</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,411</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,885</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,702</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,960</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Effect
      of discount/financing rates</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(703</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(32</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(505</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,527</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,767</font></td>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td align="left"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,241</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">845</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">906</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,885</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,175</font></td>
    <td align="left"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,193</font></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="left"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td colspan="9"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      maturity profile of the Group&#146;s financial derivatives, using undiscounted
      cash flows, is as follows:</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payable</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Receivable</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payable</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Receivable</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Within
      one year</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14,012</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14,009</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,701</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,855</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In one
      to two years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">609</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">600</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">412</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">515</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In two
      to three years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">545</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">556</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">391</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">435</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In three
      to four years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">456</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">523</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">345</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">393</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In four
      to five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">332</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">315</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">273</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">357</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more
      than five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,839</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,851</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,045</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,176</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,793</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18,854</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,167</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,731</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The currency
  split of the Group&#146;s foreign exchange derivatives, all of which mature
  in less than one year, is as follows:</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Payable</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Receivable</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Payable</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Receivable</font></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sterling</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,971</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">350</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">920</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,387</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">157</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,553</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US dollar</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,646</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,655</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,258</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,961</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japanese
      yen</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,017</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">190</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,054</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,323</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">361</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">91</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">247</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,373</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,334</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,306</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,335</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The &pound;39 million net payable (2005: &pound;29 million net receivable) foreign exchange financial instruments, in the table above, are split &pound;69 million (2005: &pound;13
million) within trade and other payables and &pound;30 million (2005: &pound;42
million) within trade and other receivables.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The present value of minimum lease payments under finance lease arrangements under which the Group has leased certain of its equipment is analysed as follows:</font>
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td bgcolor="#CCCCCC"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Within
      one year</font></td>
    <td width="8%" align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td width="2%" bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In two
      to five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">31</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">64</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more
      than five years</font></td>
    <td align="right" bgcolor="#CCCCCC"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">37</font></b></td>
    <td bgcolor="#CCCCCC"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td bgcolor="#CCCCCC"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">103</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p104"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.&nbsp;&nbsp;&nbsp;Borrowings
  </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  fair value and carrying value of the Group&#146;s financial liabilities, for
  short-term borrowings and long-term borrowings, is as follows:</font> </p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fair</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair</font></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Carrying</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Carrying</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">value</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">value</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="52%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
      liabilities measured at amortised cost:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
      loans</font></font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">58</font></b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
    <td width="2%">&nbsp;</td>
    <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">58</font></b></font></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
      overdrafts</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finance
      lease obligations</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      liabilities</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,840</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,640</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,840</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,640</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans
      in fair value hedge relationships:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.27%
      Japanese yen 25bn bond due 2005</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.93%
      Japanese yen 25bn bond due 2005</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.35%
      US dollar 200m bond due 2005</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.83%
      Japanese yen bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.4%
      euro400m bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">281</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">293</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.75%
      euro1.5bn bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,063</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,091</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.5%
      US dollar 400m bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">126</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term
      borrowings</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,408</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,003</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,448</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,003</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
      liabilities measured at amortised cost:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
      loans</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,414</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,214</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,414</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,214</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Redeemable
      preference shares</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">845</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">902</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">845</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Finance
      lease obligations</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">68</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">68</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bonds:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
      dollar FRN due June 2007</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,064</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,064</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
      dollar FRN due December 2007</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">859</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">867</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro
      FRN due July 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">873</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">875</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
      dollar FRN due June 2011</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">201</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">202</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.125%
      euro 500m bond due 2015</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">366</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">375</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">376</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">371</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5%
      euro 750m bond due 2018</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">540</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">554</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">544</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">535</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">295</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">202</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">295</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">202</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loans
      in fair value hedge relationships:</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.83%
      Japanese yen 3bn bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.78%
      Japanese yen 25bn bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.4%
      euro 400m bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">284</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">296</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.75%
      euro 1.5bn bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,080</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.5%
      US dollar 400m bond due 2006</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">115</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.161%
      US dollar 150m bond due 2007</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">86</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.575%
      Japanese yen 25bn bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">132</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.95%
      US dollar 500m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">281</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">261</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">281</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">260</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.625%
      euro 250m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">178</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">180</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">172</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">175</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.5%
      euro 400m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">35</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.25%
      sterling 250m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">257</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">258</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">255</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">255</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.25%
      sterling 150m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">154</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">155</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">145</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">148</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.65%
      US dollar 500m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">147</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">140</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.625%
      euro 500m bond due 2008</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">316</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">359</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">355</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">357</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.25%
      euro 1.4bn bond due 2009</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">990</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,000</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,008</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,017</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.25%
      euro 500m bond due 2009</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">354</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">357</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">360</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">364</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.75%
      euro 3bn bond due 2009</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">624</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">633</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">593</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">587</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0%
      Japanese yen 25bn bond due 2010</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">131</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.28%
      Japanese yen 25bn bond due 2010</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">125</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.50%
      Japanese yen 25bn bond due 2010</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">135</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.75%
      US dollar 2.75bn bond due 2010</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,702</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,543</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,693</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,600</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.5%
      US dollar 750m bond due 2011</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">428</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">430</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.625%
      euro 750m bond due 2012</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">505</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">514</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.0%
      US dollar 1bn bond due 2013</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">549</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">513</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">559</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">528</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.625%
      sterling 350m bond due 2014</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">333</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">349</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.375%
      US dollar 500m bond due 2015</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">307</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">260</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">274</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">260</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.375%
      US dollar 400m bond due 2015</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">220</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">208</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">220</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">208</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.0%
      US dollar 750m bond due 2015</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">419</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">415</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.75%
      US dollar 750m bond due 2016</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">423</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">427</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.625%
      US dollar 500m bond due 2018</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">258</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">245</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">260</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">245</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.625%
      sterling 250m bond due 2025</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">254</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">253</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">271</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">258</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.875%
      US dollar 750m bond due 2030</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">499</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">496</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">542</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">512</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.9%
      sterling 450m bond due 2032</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">477</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">468</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">480</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">454</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.25%
      US dollar 495m bond due 2032</font></font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">293</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">268</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">281</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">265</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term
      borrowings</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,670</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,188</font></td>
    <td>&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16,750</font></b></font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,190</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair values
  are calculated using discounted cash flows with a discount rate based upon forward
  interest rates available to the Group at the balance sheet date.</font> </p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">104</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p105"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowing
  facilities </font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Group&#146;s most significant committed borrowing facilities comprised
  two bank facilities of $5,925 million (&pound;3,407 million) and $5,025 million
  (&pound;2,890 million) expiring between two and five years and in more than
  five years, respectively (2005: two bank facilities of $5,525 million (&pound;2,926
  million) and $4,853 million (&pound;2,570 million)), and a &yen;259 billion
  (&pound;1,265 million, 2005: &yen;225 billion (&pound;1,112 million)) term credit
  facility, which expires between two and five years. The bank facilities remained
  undrawn throughout the year and the &yen;259 billion term credit facility was
  fully drawn down on 21 December 2005.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under the
  terms and conditions of the $5,925 million and $5,025 million bank facilities,
  lenders have the right, but not the obligation, to cancel their commitment 30
  days from the date of notification of a change of control of the Company and
  have outstanding advances repaid on the last day of the current interest period.
  The facility agreement provides for certain structural changes that do not affect
  the obligations of the Company to be specifically excluded from the definition
  of a change of control. This is in addition to the rights of lenders to cancel
  their commitment if the Company has committed an event of default. Substantially
  the same terms and conditions apply in the case of Vodafone Finance K.K.&#146;s
  &yen;259 billion term credit facility, although the change of control provision
  is applicable to any guarantor of borrowings under the term credit facility.
  As of 31 March 2006, the Company was the sole guarantor of the &yen;259 billion
  term credit facility.</font> </p>
</div>
<div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition
  to the above, certain of the Group&#146;s subsidiaries had committed facilities
  at 31 March 2006 of &pound;271 million (2005: &pound;168 million) in aggregate,
  of which &pound;65 million (2005: &pound;77 million) was undrawn. Of the total
  committed facilities, &pound;121 million (2005: &pound;28 million) expires in
  less than one year, &pound;109 million (2005: &pound;100 million) expires between
  two and five years, and &pound;41 million (2005: &pound;40) expires in more
  than five years.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Redeemable
  preference shares<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Redeemable
  preference shares comprise class D and E preferred shares issued by Vodafone
  Americas, Inc. An annual dividend of $51.43 per class D and E preferred share
  is payable quarterly in arrears. The dividend for the year amounted to &pound;48
  million (2005: &pound;46 million). The aggregate redemption value of the class
  D and E preferred shares is $1.65 billion. The holders of the preferred shares
  are entitled to vote on the election of directors and upon each other matter
  coming before any meeting of the shareholders on which the holders of ordinary
  shares are entitled to vote. Holders are entitled to vote on the basis of twelve
  votes for each share of class D or E preferred stock held. The maturity date
  of the 825,000 class D preferred shares is 6 April 2020. The 825,000 class E
  preferred shares have a maturity date of 1 April 2020. The class D and E preferred
  shares have a redemption price of $1,000 per share plus all accrued and unpaid
  dividends.</font> </p>
</div><br clear="all">
<p>&nbsp;</p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
  rate and currency of borrowings</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan="5" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed
      rate borrowings</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan="5" align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Floating</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">time
      for</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">rate</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">rate</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">average</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">which
      rate is</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">borrowings</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">interest
      rate</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">fixed</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Currency</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Years</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="40%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sterling</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,511</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,511</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6,941</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,996</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">945</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US dollar</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,905</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,905</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japanese
      yen</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,296</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,296</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,545</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,545</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,198</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19,253</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">945</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sterling</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,123</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,123</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euro</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,216</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,238</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">978</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.6</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US dollar</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,107</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,107</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japanese
      yen</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,061</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,061</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">686</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">686</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,193</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,215</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">978</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11.6</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
  on floating rate borrowings is based on national LIBOR equivalents or government
  bond rates in the relevant currencies.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The figures
  shown in the tables above take into account interest rate swaps used to manage
  the interest rate profile of financial liabilities. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Group had entered into foreign exchange contracts to decrease its
  sterling and US dollar borrowings above by amounts equal to &pound;2,971 million
  (2005: &pound;570 million) and &pound;6,009 million (2005: &pound;2,703 million)
  respectively and to increase its euro, Japanese yen and other currency borrowings
  above by amounts equal to &pound;6,230 million (2005: &pound;1,487 million),
  &pound;1,827 million (2005: &pound;1,913 million) and &pound;962 million (2005:
  &pound;156 million decrease to other borrowings) respectively. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Further
  protection from euro and Japanese yen interest rate movements on debt is provided
  by interest rate swaps. At 31 March 2006 the Group had euro and Japanese yen
  denominated interest rate swaps for amounts equal to &pound;1,536 million and
  &pound;3,720 million respectively. The effective rates, which have been fixed,
  are 3.54% and 0.36% respectively. In addition the Group has entered into euro
  denominated forward starting interest rate swaps for amounts equal to &pound;698
  million, &pound;2,793 million and &pound;698 million, which cover the periods
  June 2007 to June 2008, June 2008 to June 2009 and September 2008 to September
  2009 respectively. The effective rates, which have been fixed, range from 2.62%
  per annum to 3.02% per annum.</font> </p>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">105</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
  <p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.&nbsp;&nbsp;&nbsp;Borrowings
    </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued
    </font><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
    <font size="3">Financial risk management<br>
    </font></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group&#146;s treasury function provides a centralised service to the Group
    for funding, foreign exchange, interest rate management and counterparty risk
    management. Treasury operations are conducted within a framework of policies
    and guidelines authorised and reviewed annually by the Company&#146;s Board
    of directors, most recently on 31 January 2006. A Treasury Risk Committee,
    comprising of the Group&#146;s Chief Financial Officer, Group General Counsel
    and Company Secretary, Group Treasurer and Director of Financial Reporting,
    meets quarterly to review treasury activities and management information relating
    to treasury activities. In accordance with the Group treasury policy, a quorum
    for meetings is four members and either the Chief Financial Officer or Group
    General Counsel and Company Secretary must be present at each meeting. The
    Group accounting function, which does not report to the Group Treasurer, provides
    regular update reports of treasury activity to the Board of directors. The
    Group uses a number of derivative instruments that are transacted, for risk
    management purposes only, by specialist treasury personnel. The Group&#146;s
    internal auditors review the internal control environment regularly. There
    has been no significant change during the financial year, or since the end
    of the year, to the types of financial risks faced by the Group or the Group&#146;s
    approach to the management of those risks.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s
  policy is to borrow centrally, using a mixture of long term and short term capital
  market issues and borrowing facilities, to meet anticipated funding requirements.
  These borrowings, together with cash generated from operations, are on-lent
  or contributed as equity to certain subsidiaries. The Board of directors has
  approved three debt protection ratios, being: net interest to operating cash
  flow (plus dividends from associated undertakings); retained cash flow (operating
  cash flow plus dividends from associated undertakings less interest, tax, dividends
  to minorities and equity dividends) to net debt; and operating cash flow (plus
  dividends from associated undertakings) to net debt. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">These internal
  ratios establish levels of debt that the Group should not exceed other than
  for relatively short periods of time and are shared with the Group&#146;s debt
  rating agencies, being Moody&#146;s, Fitch Ratings and Standard &amp; Poor&#146;s.</font>
</p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Liquidity
    risk</font></b> </font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As at 31
    March 2006, the Group had $10.9 billion committed undrawn bank facilities
    and $15 billion and &pound;5 billion commercial paper programmes, that are
    supported by the $10.9 billion committed bank facilities, available to manage
    its liquidity. </font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Market
    risk<br>
    </font></b></font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Interest
    rate management</font></b> </font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under the
    Group&#146;s interest rate management policy, interest rates on monetary assets
    and liabilities are maintained on a floating rate basis, unless the forecast
    interest charge for the next eighteen months is material in relation to forecast
    results, in which case rates are fixed. In addition, fixing is undertaken
    for longer periods when interest rates are statistically low.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, 29% (2005: 31%) of the Group&#146;s gross borrowings were fixed for a
  period of at least one year. A one hundred basis point fall or rise in market
  interest rates for all currencies in which the Group had borrowings at 31 March
  2006 would increase or reduce profit before tax by approximately &pound;91 million,
  including mark-to-market revaluations of interest rate and other derivatives
  and the potential interest on outstanding tax issues.</font> </p>
  <p> <font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Foreign
    exchange management</font></b> </font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As Vodafone&#146;s
    primary listing is on the London Stock Exchange, its share price is quoted
    in sterling. Since the sterling share price represents the value of its future
    multi-currency cash flows, principally in euro, yen (until disposal of its
    Japan operation on 27 April 2006), sterling and US dollars, the Group has
    a policy to hedge external foreign exchange risks on transactions denominated
    in other currencies above certain de minimis levels. </font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  also maintains the currency of debt and interest charges in proportion with
  its expected future principal multi-currency cash flows. As such, at 31 March
  2006,113% of net debt was denominated in currencies other than sterling (73%
  euro, 21% yen, 14% US dollar and 5% other), whilst 13% of net debt had been
  purchased forward in sterling in anticipation of sterling denominated shareholder
  returns via share purchases, dividends and B share distribution. This allows
  debt to be serviced in proportion to expected future cash flows and, therefore,
  provides a partial hedge against income statement translation exposure, as interest
  costs will be denominated in foreign currencies. A relative weakening in the
  value of sterling against certain currencies in which the Group maintains debt
  has resulted in an increase in net debt of &pound;182 million from currency
  translation differences.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">When the
  Group&#146;s international net earnings for the year ended 31 March 2006 are
  retranslated assuming a 10% strengthening of sterling against all exchange rates,
  the operating profit for the year would have increased by &pound;1,344 million
  (2005: reduced by</font> </p>
</div>
<div style="float: right; width: 48%">
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;645
  million), and would have been reduced by &pound;1,642 million (2005: increased
  by &pound;789 million) if sterling weakened by 10%.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The change
  in equity due to a 10% fall or rise in sterling rates against all exchange rates
  for the translation of net investment hedging instruments would be a decrease
  of &pound;1,669 million or an increase of &pound;1,365 million. However, there
  would be no net impact on equity as there would be an offset in the currency
  translation of the foreign operation.</font> </p>
  <p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Credit
    risk</font></b> </font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
    considers its maximum exposure to credit risk to be as follows:</font> </p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
      <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
      <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
        deposits</font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">948</font></b></font></td>
      <td width="2%" bgcolor="#cccccc">&nbsp;</td>
      <td width="2%" align="right">&nbsp;</td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">343</font></td>
      <td width="2%">&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Money
        market fund investments</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,841</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,708</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Commercial
        paper investments</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">512</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Repurchase
        agreements</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">206</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
        financial instruments</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">310</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">408</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td bgcolor="#cccccc"> <hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,099</font></b></font></td>
      <td bgcolor="#cccccc">&nbsp;</td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,177</font></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td bgcolor="#cccccc"> <hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
  </table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Concentrations
  of credit risk with respect to trade receivables are limited due to the Group's
  customer base being large and unrelated. Due to this, management believes there
  is no further credit risk provision required in excess of the normal provision
  for bad and doubtful receivables (note 17).</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The deposits
  shown in the table equate to the principal of the amount deposited. The foreign
  exchange transactions and interest rate swaps shown in the table have been marked-to-market.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For repurchase
  agreements, collateral equivalent to the investment value is satisfied by triple-A
  rated government and/or supranational instruments and collateral is replenished
  on a daily basis. In respect of financial instruments used by the Group&#146;s
  treasury function, the aggregate credit risk the Group may have with one counterparty
  is limited by reference to the long term credit ratings assigned for that counterparty
  by Moody&#146;s, Fitch Ratings and Standard &amp; Poor&#146;s. While these counterparties
  may expose the Group to credit losses in the event of non-performance, it considers
  the possibility of material loss to be acceptable because of this policy.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consistent
  with development of its strategy, the Group is now targeting low single A long
  term credit ratings from Moody&#146;s, Fitch Ratings and Standard &amp; Poor&#146;s
  having previously managed the capital structure at single A credit ratings.
  Credit ratings are not a recommendation to purchase, hold or sell securities,
  in as much as ratings do not comment on market price or suitability for a particular
  investor, and are subject to revision or withdrawal at any time by the assigning
  rating organisation. Each rating should be evaluated independently.</font> </p>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p106"></a>25.&nbsp;&nbsp;&nbsp;Post
    employment benefits<br>
    </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Background</font>
    <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As at 31
    March 2006, the Group operated a number of pension plans for the benefit of
    its employees throughout the world, which vary depending on the conditions
    and practices in the countries concerned. The Group's pension plans are provided
    through both defined benefit and defined contribution arrangements. Defined
    benefit schemes provide benefits based on the employees' length of pensionable
    service and their final pensionable salary or other criteria. Defined contribution
    schemes offer employees individual funds that are converted into benefits
    at the time of retirement.</font> </p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The principal defined benefit pension schemes are in the United Kingdom and Germany. The Group also operated defined benefit schemes in Japan, its discontinued operation, and in
Sweden until it was disposed of on 5 January 2006. In addition, the Group operates defined benefit schemes in Greece, Ireland, Italy and the United States. Defined contribution pension schemes are provided in Australia, Belgium, Egypt, Germany,
Greece, Hungary, Ireland, Italy, Malta, the Netherlands, New Zealand, Portugal, Spain, the United Kingdom and the United States. A defined contribution scheme is also operated in the Group&#146;s discontinued operation in Japan. There is a post
retirement medical plan in the United States for a small closed group of participants.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group accounts for its pension schemes in accordance with IAS 19, Employee Benefits (&#147;IAS19&#148;). The Group has also early adopted the amendment to IAS 19 that was
published in December 2004 regarding actuarial gains and losses, group plans and disclosures.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Scheme liabilities are assessed by independent actuaries using the projected unit funding method and applying the principal actuarial assumptions set out below. Assets are shown at
market value. </font>
</p>
</div><br clear="all">

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">106</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p107"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p><div style="float: left; width: 48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The measurement
  date for the Group&#146;s pension assets and obligations is 31 March. The measurement
  date for the Group&#146;s net periodic cost is 31 March of the previous year.
  Actuarial gains and losses are recognised in the period in which they arise.
  Payments to defined contribution schemes are charged as an expense as they fall
  due.</font> </p>


<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the UK,
  the majority of the UK employees are members of the Vodafone Group</font> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pension
  Scheme (the &#147;main scheme&#148;), which was closed to new entrants from
  1 January 2006. This is a tax approved defined benefit scheme, the assets of
  which are held in an external trustee-administered fund. The investment policy
  and strategy of the scheme is the responsibility of the plan trustees, who are
  required to consult with the Company as well as taking independent advice on
  key investment issues. In setting the asset allocation, the Trustees take into
  consideration a number of criteria, including the key characteristics of the
  asset classes, expected risk and return, the structure and term of the member
  liabilities, diversification of assets, minimum funding and solvency requirements,
  as well as the Company&#146;s input on contribution requirements. The plan has
  a relatively low level of pensioner liabilities already in payment, meaning
  that the overall duration of plan liabilities is long term. A significant percentage
  of assets has currently been allocated to equities although this approach is
  reviewed regularly. </font> </p>
  </div>
  <div style="float: right; width: 48%">
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The main scheme is subject to quarterly funding updates by independent actuaries and to formal actuarial valuations at least every three years. The most recent formal triennial
valuation of this scheme was carried out as at 31 March 2004.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As a result of the triennial actuarial valuation, the Group&#146;s UK subsidiaries agreed to make a special lump sum contribution of &pound;30 million (2005: &pound;100 million)
during the financial year. The special contributions brought the funding position to 99% at 31 March 2006.</font>
</p>
  <p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are
    a number of separate pension and associated arrangements in Germany. There
    is no requirement to fund liabilities, however the Group funds pension obligations
    via a Contractual Trust Arrangement, in a separate legal agreement. The investment
    policy and strategy is controlled by Group appointed trustees. The investment
    approach followed is similar to that adopted by the Trustees of the UK plan
    although a higher proportion of assets are allocated to bond securities than
    to equities, reflecting the more mature nature and shorter duration of the
    liability commitments. The German schemes are subject to annual valuations,
    with the last formal valuations having been completed at 31 March 2006.</font></p>
  <p>&nbsp; </p>
</div><br clear="all">
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income
      statement expense</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><div align="right"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size="1"></font></font></div></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><strong>2006</strong></font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><div align="right"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><font size="1"></font></font></div></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined
      contributions schemes</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined
      benefit schemes</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1> </td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      amount charged to the income statement (note 34)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">80</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2> </td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined
  benefit schemes</font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The most recent
  full formal actuarial valuations for defined benefit schemes have been updated
  by qualified independent actuaries for the financial year ended 31 March 2006
  to provide the IAS 19 disclosures below. </font> </p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Major
      assumptions used</font></b></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td>&nbsp;</td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td>&nbsp;</td>
    <td colspan="3" align="right">
      <div align="right"></div>
      <div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font><sup></sup></div></td>
    <td><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td>&nbsp;</td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td>&nbsp;</td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted
      average actuarial assumptions used to determine</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">benefit
      obligations:</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rate
      of inflation</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.9</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.9</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.8</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.0</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rate
      of increase in salaries</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.9</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rate
      of increase in pensions in payment and deferred pensions</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discount
      rate</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.6</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.3</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Weighted
      average actuarial assumptions used to determine net</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">periodic
      benefit cost:</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rate
      of inflation</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.1</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rate
      of increase in salaries</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.0</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discount
      rate</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.4</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      long term rate of return on plan assets during the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.4</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      rates of return:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7.7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.6</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bonds</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.0</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2">&#150;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.3</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.8</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Figures
      shown for other schemes represent weighted average assumptions of individual
      schemes.</font> </td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For the US
  post retirement medical plan, the immediate trend rate for valuing the dental
  benefits was 6.5 per cent, which is assumed to reduce gradually to 5.25 per
  cent in 2008. The immediate trend rate for medical benefits was 12.0 per cent,
  which is assumed to reduce gradually to 5.25 per cent in 2013.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The expected
  return on assets assumption is derived by considering the expected long term
  rates of return on plan investments. The overall rate of return is a weighted
  average of the expected returns of the individual investments made in the group
  plans. The long term rate of return on equities and property are derived from
  considering current &#147;risk free&#148; rates of return with the addition
  of an appropriate future &#147;risk premium&#148; from an analysis of historic
  returns in various countries. The long term rates of return on bonds and cash
  investments are set in line with market yields currently available at the balance
  sheet date.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mortality
  and life expectancy assumptions used are consistent with those recommended by
  the individual scheme actuaries, and in accordance with statutory and local
  funding requirements. The mortality tables in Germany have been updated at 31
  March 2006 in line with newly published tables.</font> </p>
<p>&nbsp; </p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><font color="#f02015" size=1
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">107</font></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p108"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <font size="3"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<p><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
  25.&nbsp;&nbsp;&nbsp;Post employment benefits </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Charges
  made to the consolidated income</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
  statement and </font><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">consolidated statement of
  recognised income and expense on the basis of the assumptions stated above:</font></font>
  <font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
  </font></p>
<p>&nbsp;</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td>&nbsp;</td>
    <td colspan="3" align="right"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td>&nbsp;</td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td>&nbsp;</td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td>&nbsp;</td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td>&nbsp;</td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td>&nbsp;</td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr align="right">
    <td> <div align="right"></div></td>
    <td> <div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></div></td>
    <td>&nbsp; </td>
    <td> <div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></div></td>
    <td>&nbsp; </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right"><div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></div></td>
    <td>&nbsp;</td>
    <td><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></div></td>
    <td>&nbsp;</td>
    <td align="right"><div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></div></td>
    <td>&nbsp;</td>
    <td><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></div></td>
    <td>&nbsp;</td>
    <td align="right"><div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></div></td>
    <td>&nbsp;</td>
    <td><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></div></td>
    <td>&nbsp;</td>
    <td align="right"><div align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></div></td>
    <td>&nbsp;</td>
    <td><div align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      service cost</font></td>
    <td width="7%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td width="2%" valign="bottom"><font size="2">&nbsp;</font></td>
    <td width="7%" align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">38</font></b></font></div></td>
    <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td width="2%" valign="bottom"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
    <td width="2%" valign="bottom"><font size="2">&nbsp;</font></td>
    <td width="7%" align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57</font></b></font></div></td>
    <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></td>
    <td width="2%" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      cost</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">41</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
        return on scheme assets</font></div></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(9</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8</font></td>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(44</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(31</font></td>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3</font></td>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(57</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(42</font></td>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td valign="bottom"> <hr noshade size=1></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        included within staff costs (note 34)</font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom"><div align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></div></td>
    <td valign="bottom"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom"><div align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</font></div></td>
    <td valign="bottom"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom"><div align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</font></div></td>
    <td valign="bottom"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><div align="right"><font size="2">&nbsp;</font></div></td>
    <td valign="bottom"><div align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52</font></div></td>
    <td valign="bottom"><div align="right"></div></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr align="right" size=2 noshade></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr align="right" size=2 noshade></td>
    <td valign="bottom" bgcolor="#cccccc"> <hr noshade size=2></td>
    <td valign="bottom"> <hr noshade size=2></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated
        statement of recognised </font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">income
        and expense:</font></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><font size="2"><font size="2"></font></font></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><font size="2"><font size="2"></font></font></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align="center" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align="center" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><div style="margin-left:3%; text-indent:-3%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        actuarial (gains)/losses recognised in</font><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">consolidated
        statement of recognised</font><font size="2">&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">income
        and expense</font></font></font></div></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">56</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">72</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8</font></b></td>
    <td valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="center" valign="bottom" bgcolor="#cccccc"> <div align="right"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">43</font></b></font></div></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr align="right" size=2 noshade></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr align="right" size=2 noshade></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All actuarial
  gains and losses are recognised immediately.</font> </p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Figures relating
  to the income statement are for continuing operations only. </font></p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The cumulative
  recognised actuarial losses for Germany, the UK and the other schemes was &pound;15
  million, &pound;128 million and &pound;2 million respectively.</font> </p>
<p><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fair
  value of the assets and liabilities of the schemes</font></b> <br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  amount included in the balance sheet arising from the Group&#146;s obligations
  in respect of its defined benefit retirement schemes is as follows:</font> </p>
<table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td width="2%"><font size="1">&nbsp;</font></td>
    <td colspan="3"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td width="2%"><font size="1">&nbsp;</font></td>
    <td colspan="3"> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td width="2%"><font size="1">&nbsp;</font></td>
    <td colspan="3"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td width="2%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td>
      <div align="right"><font size="1"></font></div></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td> <font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td>
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td>
      <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movement
      in assets:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">181</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">165</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">628</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">433</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">874</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">640</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification
      as held for sale</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      return on scheme assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">44</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Actuarial
      gains/(losses)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">121</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employer
      cash contributions</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">167</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Member
      cash contributions</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits
      paid</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(10</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      rate movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">205</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">181</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">835</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">628</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">83</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">65</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,123</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">874</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Movement
      in scheme liabilities:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">213</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">192</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">619</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">457</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">166</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">145</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">998</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">794</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification
      as held for sale</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(31</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(31</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Service
      cost</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">38</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      cost</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Member
      cash contributions</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Actuarial
      (gains)/losses</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">155</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">164</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits
      paid</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(10</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(30</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      rate movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">229</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">213</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">847</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">619</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">166</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,224</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">998</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated
      benefit obligation</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">222</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">208</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">746</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">545</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">113</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">151</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,081</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">904</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analysis
      of net assets/(deficits):</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      fair value of scheme assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">205</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">181</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">835</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">628</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">83</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">65</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,123</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">874</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Present
      value of funded scheme liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(207</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(191</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(847</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(619</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(108</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,128</font></td>
    <td bgcolor="#cccccc"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(918</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      assets/(deficits) for funded schemes</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(44</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Present
      value of unfunded scheme</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">liabilities</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(22</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(22</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(58</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(96</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(80</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      assets/(deficits)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(24</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(32</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(65</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(101</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(101</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(124</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      assets/(deficits) are analysed as:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(34</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(35</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(101</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(120</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(136</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="17">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="17"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      funding policy for the German and UK schemes is reviewed on a systematic
      basis in consultation with the independent scheme actuary in order to ensure
      that the funding contributions from sponsoring employers are appropriate
      to meet the liabilities of the schemes over the long term.</font> </td>
  </tr>
  <tr>
    <td colspan="17">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="17"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      deficit in respect of other schemes at 31 March 2006 primarily relates to
      internally funded schemes in Italy and the United States.</font> </td>
  </tr>
</table>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">108</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p><p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Actual
  return on scheme assets</font></b> </p>


<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="center"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td align="center"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="center"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="center"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Actual
      return on scheme assets</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">143</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">54</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">178</font></b></td>
    <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
    <td width="2%" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Analysis
      of scheme assets at</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31
      March is as follows:</font></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34.1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29.8</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79.9</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66.6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">81.0</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bonds</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">59.1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">63.6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20.1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.7</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.7</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6.8</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.6</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16.7</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4.6</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100.0</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.0</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="17"> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
      scheme has no investments in the Group&#146;s equity securities or in property
      currently used by the Group.</font> </td>
  </tr>
  <tr>
    <td colspan="17">&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">History
      of experience adjustments</font></b></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></font></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></font></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></font></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td colspan="3" align="right"><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></font></td>
    <td><div align="right"><font size="1"></font></div></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Experience
      adjustments on</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">scheme
      liabilities:</font></font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
      (&pound;m)</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(56</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td width="7%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(60</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage
      of scheme liabilities (%)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6%</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Experience
      adjustments on scheme assets:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amount
      (&pound;m)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">121</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage
      of scheme assets (%)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">%</font></b></font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3%</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b></b></font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3%</font><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Expected
      contributions and benefit payments</font></b></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><div align="right"><font size="1"></font></div></td>
    <td><div align="right"><font size="1"></font></div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td><hr align="right" size=1 noshade></td>
    <td><div align="right"><font size="1"></font></div></td>
  </tr>
  <tr>
    <td><div align="right"><font size="1"></font></div></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="center"><div align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
        employer&#146;s contributions in the year ending 31 March 2007</font></div></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></div></td>
    <td width="2%" bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td width="8%" align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></div></td>
    <td width="2%" bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td width="8%" align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></div></td>
    <td width="2%" bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td width="8%" align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61</font></b></div></td>
    <td width="2%" bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Expected
      benefit payments in the year ending 31 March:</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2007</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2008</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2009</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">33</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2010</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2011</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2012-2017</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="center" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">66</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">38</font></b></div></td>
    <td bgcolor="#cccccc"> <div align="right"><font size="2"></font></div></td>
    <td align="right" bgcolor="#cccccc"> <div align="right"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">180</font></b></div></td>
    <td bgcolor="#cccccc">
<div align="right"><font size="2"></font></div></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr noshade size=2>
      </div></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr noshade size=2>
      </div></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr noshade size=2>
      </div></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc">
<div align="right"></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p109"></a>26.&nbsp;&nbsp;&nbsp;Provisions
      for liabilities and charges</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Asset</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">retirement</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="center"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">obligations</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legal</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">provisions</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td> <hr align="right" size=1 noshade></td>
    <td> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td> <hr align="right" size=1 noshade></td>
    <td> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td> <hr align="right" size=1 noshade></td>
    <td> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td> <hr align="right" size=1 noshade></td>
    <td> <div align="right"></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">160</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">188</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">199</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">547</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reclassification
      as held for sale</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(25</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(25</font></td>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right"></div></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">135</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">188</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">199</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">522</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange
      movements</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      capitalised in the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      charged to the income statement</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">38</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">39</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Utilised
      in the year - payments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(77</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(154</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      released to the income statement</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6</font></b></td>
    <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(27</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right">
        <hr align="right" size=1 noshade>
      </div></td>
    <td bgcolor="#cccccc"> <hr align="right" size=1 noshade></td>
    <td bgcolor="#cccccc"> <div align="right"></div></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">157</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">404</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions
      have been analysed between current and non-current as follows:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      liabilities</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">139</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">228</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">265</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">319</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">404</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">547</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right"><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">109</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>

<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26.&nbsp;&nbsp;&nbsp;Provisions
  for liabilities and charges </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued
  </font><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  <font size="3">Asset retirement obligations</font></font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In the course
  of the Group&#146;s activities, a number of sites and other assets are utilised
  which are expected to have costs associated with exiting and ceasing their use.
  The associated cash outflows are generally expected to occur at the dates of
  exit of the assets to which they relate, which are long term in nature.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legal</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group is involved in a number of legal and other disputes, including notification
of possible claims. The directors of the Company, after taking legal advice,
have established provisions after taking into account the facts of each case.
The timing of cash outflows associated with legal claims cannot be reasonably
determined. For a discussion of certain legal issues potentially affecting the
Group, refer to note 31 &#147;Contingent liabilities&#148;.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other provisions</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other provisions primarily comprise amounts provided for property and restructuring costs. The associated cash outflows for restructuring costs are substantially short term in nature.
The timing of the cash flows associated with property is dependent upon the remaining term of the associated lease.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p110"></a>27.&nbsp;&nbsp;&nbsp;Trade
  and other payables</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
      within non-current liabilities:</font></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      payables</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
      financial instruments</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">48</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accruals
      and deferred income</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">357</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">376</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">566</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">438</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td valign="bottom"><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
      within current liabilities:</font></td>
    <td valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      payables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,248</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,013</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      owed to associated undertakings</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      taxes and social security payable</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">412</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">314</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
      financial instruments</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">71</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      payables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">440</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">470</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accruals
      and deferred income</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,277</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,197</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,477</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,033</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing operating expenses.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The fair values of the derivative financial instruments are calculated by discounting
the future cash flows to net present values using appropriate market interest
and foreign
currency rates prevailing at the year end.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Included within &#147;Derivative financial instruments&#148; is
the following:
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair
      value hedges:</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      rate swaps</font></font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">48</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair
      value through the income statement:</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest
      rate swaps</font></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign
      exchange swaps</font></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">69</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign
      exchange forwards</font></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">71</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">219</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">79</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">110</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p111"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.&nbsp;&nbsp;&nbsp;Acquisitions<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  principal acquisitions made by the Group during the financial year are as follows:</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Czech Republic and Romania &#150; ClearWave N.V.</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
31 May 2005, the Group acquired 99.99% of the issued share capital of ClearWave
N.V. for cash consideration of &pound;1,905 million. ClearWave N.V. is the parent
company of a group of companies involved in the provision of mobile telecommunications
in the Czech Republic and Romania. This transaction has been accounted for by
the purchase method of accounting.</font></p>
<table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="9%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Book</font></td>
    <td width="2%"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="10%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair
      value</font></td>
    <td width="2%"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="9%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair</font></td>
    <td width="2%"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">adjustments</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      assets acquired:</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
      assets</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">87</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">770</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>857</b></font></td>
    <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b><sup>(1)</sup></b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property,
      plant and equipment</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">562</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">539</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">106</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">65</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax liabilities</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(129</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(129</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short
      and long-term borrowings</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(550</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(64</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(614</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      tax liabilities</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other payables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(153</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(156</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">113</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">539</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">652</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
      interests</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Asset
      revaluation surplus</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(2)</sup></font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(112</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,367</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      cash consideration (including &pound;9 million of directly attributable
      costs)</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,905</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      cash outflow arising on acquisition:</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      consideration</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,905</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents acquired</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(65</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,840</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets consist of licences and spectrum fees of &pound;461 million and other intangibles of &pound;396 million.</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The asset revaluation surplus relates to the recognition of the fair value of intangible assets on the Group&#146;s existing 20.1% stake in MobiFon S.A.</font></td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within those businesses after the Group's acquisition of ClearWave
N.V.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The acquired entities and percentage of voting rights acquired was as follows:
</font></p>
<table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">%</font></b></td>
   <td width="3%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">MobiFon S.A. (renamed Vodafone Romania S.A.)</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Oskar Mobil a.s.</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.87</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ClearWave N.V.</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">MobiFon Holdings B.V.</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Oskar Holdings N.V. (renamed Vodafone Oskar Holdings N.V.)</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Oskar Finance B.V. (renamed Vodafone Oskar Finance B.V.)</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ClearWave Services (Mauritius) Ltd.</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99.99</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Results of the acquired entities have been consolidated in the income statement from the date of acquisition, 31 May 2005. </font>
</p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Subsequent to the completion of the acquisition on 31 May 2005, a further 0.9%
of Vodafone Romania
S.A. was acquired for consideration of &pound;16 million. </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From the
    dates of acquisition, these entities contributed a profit of &pound;26 million
    to the net loss of the Group.
</font></p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p112"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>

<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.&nbsp;&nbsp;&nbsp;Acquisitions
  </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued
  </font><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  <font size="3">India &#150; Bharti Airtel Limited</font></font><font size="3">
  <br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
  18 November 2005, the Group acquired a 5.61% direct interest in Bharti Airtel
  Limited (previously Bharti Tele-Ventures Limited) from Warburg Pincus LLC, and
  on 22 December 2005 the Group acquired a further 4.39% indirect interest in
  Bharti Airtel Limited, bringing the Group&#146;s effective shareholding to 10.0%.</font></p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total cash consideration was Rs.67 billion (&pound;858 million).</font>
</p>
<table width="100%" align="center" border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="9%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Book</font></td>
    <td width="2%" align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="10%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair
      value</font></td>
    <td width="2%" align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td width="9%" align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair</font></td>
    <td width="2%" align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">adjustments</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td align="left" valign="bottom"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      assets acquired:</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
      assets</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">49</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">345</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>394</b></font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b><sup>(1)</sup></b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property,
      plant and equipment</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">142</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">141</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax liabilities</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(126</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(128</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short
      and long-term borrowings</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(56</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(56</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      tax liabilities</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other payables</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(73</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">100</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">215</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">315</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc">&nbsp;</td>
    <td align="left" valign="bottom" bgcolor="#cccccc"></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">543</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom"><hr noshade size=1> </td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      cash consideration (including &pound;1 million of directly attributable
      costs)</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">858</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td align="left" valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td align="left" valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      cash outflow arising on acquisition:</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      consideration</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">858</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents acquired</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(9</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom"><hr noshade size=1></td>
    <td align="left" valign="bottom"><hr noshade size=1></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"></td>
  </tr>
  <tr>
    <td valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">849</font></b></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td align="left" valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom"><hr noshade size=2></td>
    <td align="left" valign="bottom"><hr noshade size=2></td>
    <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
    <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Intangible
        assets consist of licences and spectrum fees of &pound;343 million and
    other intangibles of &pound;51 million.</font> </td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within those businesses after the Group's acquisition of the shares in
Bharti Airtel Limited.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Results of the acquired entity have been proportionately consolidated in the
income statement from the dates of acquisition.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
From the date of acquisition, the entity contributed a loss of &pound;8 million
to the net loss of the Group.</font>
</p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">112</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p113"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">South Africa &#150; VenFin Limited<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
26 January 2006, the Group announced that its offer to acquire a 100% interest
in VenFin
Limited (&#147;VenFin&#148;) had become wholly unconditional. VenFin&#146;s principal
asset
was a 15% stake in Vodacom Group (Pty) Limited (&#147;Vodacom&#148;). At 31 March
2006, the Group held an effective economic interest in VenFin of 98.7% and an
effective voting interest of 99.3%.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The combined
    cash consideration for the Group&#146;s

98.7% economic interest in VenFin was ZAR15.8 billion (&pound;1,458 million).</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Book</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">adjustments</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net assets acquired:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">24</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">600</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>624</b></font></td>
   <td width="2%" bgcolor="#cccccc"><font size="2"><sup>(1)</sup></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">216</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">216</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">74</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">74</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(180</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(181</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short and long-term borrowings</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(36</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(36</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current tax liabilities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(110</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(110</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">169</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">420</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">589</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">
    <hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(9</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">878</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total cash consideration (including &pound;7 million of directly attributable costs)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,458</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash outflow arising on acquisition:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash consideration</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,458</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents acquired</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
        assets consist of licences and spectrum fees of &pound;391 million and
    other intangibles of &pound;233 million.</font></td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within that business after the Group's acquisition of VenFin. </font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Results
    of the acquired entities have been proportionately consolidated in the income
    statement from the date of acquisition. </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
From the date of acquisition, the acquired part of the entity contributed a loss
of &pound;30 million to the
net loss of the Group.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
On 20 April 2006, the Group completed the compulsory acquisition of the remaining
minority shareholdings in VenFin, from which date the Group holds 100% of the
issued share capital of VenFin. As a result, the Group holds 50% of the share
capital of Vodacom.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Across the acquisitions mentioned above, the weighted average life of licences
and spectrum fees is 10 years, the weighted average life of other intangible
assets is five years and
the weighted average of total intangibles is eight years.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Turkey &#150; Telsim Mobil Telekomunikasyon</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 24 May 2006,
the Group completed the acquisition of substantially all the assets and business
of Telsim Mobil Telekomunikasyon (&#147;Telsim&#148;) from the Turkish Savings Deposit
and Investment Fund. The cash paid on this date was US$4.67 billion (&pound;2.6
billion). It is impracticable to provide further information due to the proximity
of the acquisition date to the date of approval of the Consolidated Financial
Statements. </font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pro forma full year information</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following unaudited pro forma summary presents the Group as if all of the businesses acquired in the year to 31 March 2006 had been acquired on 1 April 2005 or 1 April 2004,
respectively. The pro forma amounts include the results of the acquired companies, amortisation of the acquired intangibles assets recognised on acquisition and the interest expense on debt incurred as a result of the acquisition. The pro forma
amounts do not include any possible synergies from the acquisition. The pro forma information is provided for comparative purposes only and does not necessarily reflect the actual results that would have occurred, nor is it necessarily indicative of
future results of operations of the combined companies.</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,924</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27,709</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss) /profit for the financial year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,870</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,239</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss) /profit attributable to equity shareholders</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,966</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,131</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pence per share</font></b></td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence per share</font></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per share from continuing and discontinued operations</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(35.09</font></b></td>
   <td width="2%" align="left" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.26</font></td>
   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per share from continuing and discontinued operations</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(35.09</font></b></td>
   <td align="left" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9.23</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=2>
   </td>
   <td align="right"><hr noshade size=2></td>
   <td align="right"><font size="2">&nbsp;</font></td>
</tr>
<tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><p><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
          the year ended 31 March 2006, there are no dilutive ordinary shares
    as the Group recorded a loss for the financial year.</font></p></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p114"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
29.&nbsp;&nbsp;&nbsp;Discontinued operations and disposals<br>
</font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan &#150; Vodafone
K.K.</font><font size="3">
<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
17 March 2006, the Group announced an agreement to sell its 97.7% holding in
Vodafone
K.K. to SoftBank. The transaction completed on 27 April 2006 with the Group receiving
cash of
approximately &yen;1.42 trillion (&pound;6.9 billion) including the repayment of intercompany debt of &yen;0.16 trillion (&pound;0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately &yen;0.23
trillion (&pound;1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of approximately &yen;0.13 trillion (&pound;0.6
billion). Vodafone K.K. represented a separate geographical area of operation.
On this
basis, Vodafone K.K. has been treated as a discontinued operation.</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left> <B><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Income
    statement and segment analysis of discontinued operation</font></B></TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <B><FONT size=1 face="sans-serif">2006</FONT></B> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="sans-serif">2005</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
  </TR>
  <TR align="right" valign="bottom">
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <B><FONT size=1 face="sans-serif">&#163;m</FONT></B> </TD>
    <TD><font size="1">&nbsp;</font> </TD>
    <TD> <FONT size=1 face="sans-serif">&#163;m</FONT> </TD>
    <TD><font size="1">&nbsp;</font> </TD></TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Service revenue</font></TD>
    <TD width=10% align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">5,264</FONT></B> </TD>
    <TD width=2% align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD width=10% align=right> <FONT size=2 face="sans-serif">5,610</FONT> </TD>
    <TD width=2% align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Equipment and other revenue</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">2,004</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right> <FONT size=2 face="sans-serif">1,786</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Segment revenue</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">7,268</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right> <FONT size=2 face="sans-serif">7,396</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Inter-segment revenue</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(2</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">(1</FONT> </TD>
    <TD align=left><font size="2" face="sans-serif"> )</font></TD>
  </TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Net revenue</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">7,266</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right> <FONT size=2 face="sans-serif">7,395</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Operating expenses</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(5,667</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">(5,417</FONT> </TD>
    <TD align=left><font size="2" face="sans-serif"> )</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Depreciation and amortisation<SUP>(1)</SUP></font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(1,144</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">(1,314</FONT> </TD>
    <TD align=left><font size="2" face="sans-serif"> )</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Impairment loss</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(4,900</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">&#150;</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Operating (loss)/profit</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(4,445</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">664</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Non operating income and
        expense</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">&#150;</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right> <FONT size=2 face="sans-serif">13</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Net financing costs</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(3</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">(11</FONT> </TD>
    <TD align=left><font size="2" face="sans-serif"> )</font></TD>
  </TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> (Loss)/profit before taxation</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(4,448</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">666</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Taxation relating to performance
        of discontinued operations</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">7</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2">&nbsp;</font> </TD>
    <TD align=right> <FONT size=2 face="sans-serif">436</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> Taxation relating to the
        classification of the discontinued operations</font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(147</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B></font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">&#150;</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <tr>
    <td><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=1>
    </td>
    <td><hr noshade size=1>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <TR valign="bottom">
    <TD align=left><font size="2" face="sans-serif"> (Loss)/profit for the financial
        year from discontinued operations </font></TD>
    <TD align=right bgcolor="#cccccc"> <B><FONT size=2 face="sans-serif">(4,588</FONT></B> </TD>
    <TD align=left bgcolor="#cccccc"><font size="2" face="sans-serif"> <B>)</B> </font></TD>
    <TD align=right> <FONT size=2 face="sans-serif">1,102</FONT> </TD>
    <TD align=left><font size="2">&nbsp;</font> </TD>
  </TR>
  <tr>
    <td><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td bgcolor="#cccccc"><hr noshade size=2>
    </td>
    <td><hr noshade size=2>
    </td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</TABLE>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="right">
   <td align="left"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(Loss)/earnings per share from discontinued operations</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pence per share</font></b></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence per share</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic (loss)/earnings per share</font></td>
   <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7.35</font></b></td>
   <td width="2%" align="left" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td width="10%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.56</font></td>
   <td width="2%" align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Diluted (loss)/earnings per share</font></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7.35</font></b></td>
   <td align="left" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.56</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="left" bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="left">&nbsp;</td>
</tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<tr align="left" valign="top">
  <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
<tr align="left" valign="top">
  <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> including
    gains and losses on disposal of fixed assets</font></td>
  </tr>
</table>
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Assets
  and liabilities of disposal group at 31 March 2006</font></b></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible
      assets</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,957</font></b></td>
    <td width="2%" bgcolor="#cccccc">&nbsp;</td>
    <td width="12%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property,
      plant and equipment</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,546</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      investments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash
      and cash equivalents</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">161</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">131</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other receivables</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,113</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax asset</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">655</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      assets</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,592</font></b></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc">&nbsp;</td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
      taxation liability</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short
      and long-term borrowings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(677</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade
      and other payables</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,579</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      tax liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(246</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(40</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,543</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">114</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></TD>
  </TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p115"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td width="76%"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cash flows from discontinued operations</font></b></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
  <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from operating activities</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,651</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,739</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from investing activities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(939</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(448</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from financing activities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(536</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,289</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net increase in cash and cash equivalents</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">176</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents at the beginning of the financial year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange loss on cash and cash equivalents</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(19</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents at the end of the financial year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">161</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sweden &#150; Europolitan Vodafone AB</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On 5 January 2006, the Group completed the disposal of its 100% interest in Europolitan Vodafone AB to Telenor Mobile Holding AS. The assets and liabilities of Europolitan Vodafone AB
at the date of disposal, and the cash effects of the transaction, were as follows:</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td></tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">171</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">581</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">155</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(77</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short and long term borrowings</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(157</font></b></td>
   <td bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net assets disposed of</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">658</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total cash consideration</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">653</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other effects</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net gain on disposal</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash inflow arising on disposal:</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash consideration</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">653</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents disposed of</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">658</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
</table>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
        effects include the recycling of currency translation on disposal and
    professional fees related to the disposal.</font> </td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">115</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p116"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font></p>


<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30.&nbsp;&nbsp;&nbsp;Commitments</font>
<br>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating lease commitments</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group has entered into commercial leases on certain properties, network infrastructure, motor vehicles and items of machinery. The leases have various terms, escalation clauses,
purchase options and renewal rights.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Future minimum lease payments under non-cancellable operating leases comprise:</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size="2"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size="2"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></font></b></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Within one year</font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">654</font></b></font></td>
   <td width="2%" bgcolor="#cccccc">&nbsp;</td>
   <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">662</font></td>
   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more than one year but less than two years</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">509</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">456</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more than two years but less than three years</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">447</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">403</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more than three years but less than four years</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">397</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">351</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more than four years but less than five years</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">345</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">305</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In more than five years</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,292</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,170</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,644</font></b></font></td>
   <td bgcolor="#cccccc">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,347</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td>&nbsp;</td>
</tr>
</table>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the
amounts disclosed above as at 31 March 2006, there were additional operating
lease commitments of &pound;120 million relating to the Group&#146;s discontinued
operations in Japan, which were sold on 27 April 2006.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total of future
minimum sublease payments expected to be received under non-cancellable subleases
is &pound;60 million (2005: &pound;51 million).</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital and other financial commitments</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group</font></td>
   <td align="right" valign="bottom"><b><font size="1">&nbsp;</font></b></td>
   <td colspan=3 align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of joint ventures</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td colspan=3 align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contracts placed for future capital expenditure not provided in the financial statements:</font><font size="2"><sup><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)(2)</font></sup></font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">651</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">656</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">162</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase commitments</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">996</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,201</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">163</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share purchase programme</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">565</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase of MobiFon and Oskar</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,858</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase of Telsim</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></sup></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,600</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,247</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,280</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">325</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">201</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan="2" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
  </tr>
<tr>
   <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Commitment includes contracts placed for property, plant and equipment and intangible assets.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the amounts disclosed above as at 31 March 2006, there were additional commitments of &pound;90 million for future capital expenditure and
&pound;368 million other purchase commitments relating to the Group&#146;s discontinued operations in Japan, which were sold on 27 April 2006.</font></td>
</tr>
<tr>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the consideration price of $4.67 billion (approximately &pound;2.6 billion), the Group will be required to pay approximately $0.4 billion of VAT
which will be recoverable against Telsim's future VAT liabilities. The Group expects to recover this payment over the short to medium term.</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p117"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31.&nbsp;&nbsp;&nbsp;Contingent
liabilities</font></p>


<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1>
   </td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance bonds</font></td>
   <td width="9%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">189</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">382</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit guarantees &#150; third party indebtedness</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">64</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">67</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other guarantees and contingent liabilities</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<div style="float: left; width: 48%">
<p>&nbsp;</p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance bonds</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance bonds require the Group to make payments to third parties in the event that the Group does not perform what is expected of it under the terms of any related
  contracts.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group performance
bonds include &pound;152 million (2005: &pound;149 million) in respect of undertakings to roll out 3G networks in Spain and &pound;nil (2005: &pound;189 million) in
respect of undertakings to roll out 2G and 3G networks in Germany</font></font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit guarantees &#150; third party indebtedness</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit guarantees
comprise guarantees and indemnities of bank or other facilities including those
in respect of the Group&#146;s associated undertakings and investments.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other guarantees and contingent liabilities</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other guarantees principally comprise commitments to support disposed entities.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In addition to the amounts disclosed above, the Group has guaranteed financial indebtedness and issued performance bonds for &pound;33 million (2005: &pound;36 million) in respect of
businesses which have been sold and for which counter indemnities have been received from the purchasers.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group also enters into lease arrangements in the normal course of business, which are principally in respect of land, buildings and equipment. Further details on the minimum lease
payments due under non-cancellable operating lease arrangements can be found in note 30. </font></font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legal proceedings</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company and its subsidiaries are currently, and may be from time to time, involved in a number of legal proceedings, including inquiries from or discussions with governmental
authorities, that are incidental to their operations. However, save as disclosed below, the Company and its subsidiaries are not involved currently in any legal or arbitration proceedings (including any governmental proceedings which are pending or
known to be contemplated) which may have, or have had in the twelve months preceding the date of this report, a significant effect on the financial position or profitability of the Company and its subsidiaries.</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company is a defendant in four actions in the United States alleging personal injury, including brain cancer, from mobile phone use. In each case, various other carriers and
mobile phone manufacturers are also named as defendants. These actions are at an early stage and no accurate quantification of any losses which may arise out of the claims can therefore be made as at the date of this report. The Company is not aware
that the health risks alleged in such personal injury claims have been substantiated and will be vigorously defending such claims.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In 2002, a class action
lawsuit was brought in the United States District Court for the Southern District
of New York against the Company and certain of its officers and directors under
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder alleging principally that Vodafone had improperly delayed taking and
disclosing goodwill impairment losses relating to certain fixed line and
non-controlled mobile assets that Vodafone reported in the financial year ended
31 March 2002. Vodafone firmly denied any wrongdoing and believes the allegations
are wholly without merit. On 4 March 2005, the parties entered into a definitive
settlement agreement for a cash payment by Vodafone and its insurance carriers
of $24.5 million, before fees and expenses, which was approved by the Court on
15 July 2005. The settlement, which covers all current and former defendants,
does not
involve any admission or evidence of wrongdoing by any of them. The plaintiffs&#146; application for reimbursement of costs and an award of attorneys&#146; fees
to be paid form the settlement fund remains pending.</font>
</font></p>
</div>
<div style="float: right; width: 48%">

<p>&nbsp;</p>
<p><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
      subsidiary of the Company, Vodafone 2, is responding to an enquiry (&#147;the Vodafone 2 enquiry&#148;) by the UK Inland Revenue (now called &#147;Her Majesty&#146;s Revenue and
  Customs&#148; and hereinafter referred to as &#147;HMRC&#148;) with regard to the UK tax treatment of its Luxembourg holding company, Vodafone Investments Luxembourg SARL (&#147;VIL&#148;), under the Controlled Foreign Companies section of the
  UK&#146;s Income and Corporation Taxes Act 1988 (&#147;the CFC Regime&#148;) relating to the tax treatment of profits earned by the holding company for the accounting period ended 31 March 2001. Vodafone 2&#146;s
  position is that it is not liable to corporation tax in the UK under the CFC
  Regime in respect of VIL.</font>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
2 asserts, inter alia, that the CFC Regime is contrary to EU law and has made
an application
to the Special Commissioners of HMRC for closure of the Vodafone 2 enquiry. On
3 May 2005, the Special Commissioners referred certain questions relating to
the compatability of the CFC Regime with EU law to the European Court of Justice
(the &#147;ECJ&#148;) for determination. Vodafone 2&#146;s application for closure has been
stayed pending delivery of the ECJ&#146;s judgment. In its judgement, the ECJ will only determine questions referred to it and does not have jurisdiction to determine the outcome of Vodafone 2&#146;s application. Instead, the Special Commissioners
will apply the ECJ&#146;s judgement to the particular facts of Vodafone 2&#146;s application. Although it is not possible to address all possible outcomes, it should be noted that even if the CFC Regime is held by the ECJ to be entirely lawful,
Vodafone 2 would continue to resist the imposition of corporation tax liability on other grounds. On 15 June 2005, HMRC appealed to the High Court challenging the Special Commissioners&#146; decision to refer questions to the ECJ. This appeal was
dismissed and HMRC has since appealed this dismissal to the Court of Appeal. A decision in the latter appeal is expected to be rendered in the second half of 2006. In addition to the Vodafone 2 enquiry, on 31 October 2005, HMRC commenced an enquiry
into the residence of VIL which is ongoing (the &#147;VIL enquiry&#148;). VIL&#146;s position is that it is resident for tax purposes solely in Luxembourg and therefore it is not liable for corporation tax in the UK. The Company has taken
provisions, which at 31 March 2006 amounted to &pound;2,098 million, for the
potential UK corporation tax liability and related interest expense that may
arise in connection with the Vodafone 2 and VIL enquiries, if the Company is
not successful in its challenge of the CFC Regime. The provisions relate to the
accounting period which is the subject of the proceedings described above as
well as to accounting periods after 31 March 2001 to date.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The judgement of the ECJ is expected to be delivered at the beginning of 2007 at the earliest. In the absence of any material unexpected developments, the provisions are likely to be
reassessed when the views of the ECJ become known.</font>
</font></p>

</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</font></TD>
    <TD width="3%" align="right"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p118"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font><font size="3">
</font></p>
<p><font size="3">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32.&nbsp;&nbsp;&nbsp;Reconciliation
of net cash flows to operating activities</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from continuing operations</font></td>
   <td width="9%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(17,233</font></b></td>
   <td width="2%" align="left" valign="bottom" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td width="9%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
   <td width="2%" align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year from discontinued operations</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,588</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjustments for</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup><font
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">:</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on profit</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,520</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,433</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Depreciation and amortisation</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,834</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,517</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss on disposal of property, plant and equipment</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">88</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">162</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non operating income and expense</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other income and expense</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15)</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment income</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(353</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;<b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(303</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing costs</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,123</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">900</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">28,415</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of result in associated undertakings</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,428</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b>&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,980</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td align="left" valign="bottom"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating cash flows before movements in working capital</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,365</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,716</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Decrease in inventory</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Decrease/(increase) in trade and other receivables</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">54</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(321</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Increase in payables</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">81</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">145</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td align="left" valign="bottom"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash generated by operations</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,523</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,557</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax paid</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,682</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,578</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td align="left" valign="bottom"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net cash flows from operating activities</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11,841</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,979</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td align="left" valign="bottom"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom" bgcolor="#cccccc"><hr noshade size=1>
  </td>
  <td align="right" valign="bottom"><hr noshade size=1>
  </td>
  <td align="left" valign="bottom">&nbsp;</td>
</tr>
</table>
<table width="100%%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1) </font></font></td>
    <td><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjustments
          include
amounts relating to continuing and discontinued operations.</font> </font></td>
  </tr>
</table>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p118a"></a>33.&nbsp;&nbsp;&nbsp;Directors
    and key management compensation<br>
</font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors</font><font size="3">
<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aggregate emoluments of the directors of the Company were as follows:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Salaries and fees</font></td>
   <td width="9%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
   <td width="2%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td width="2%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Incentive schemes</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Benefits</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The aggregate
  gross pre-tax gain made on the exercise of share options in the year ended
  31 March 2006 by directors who served during the year was less than &pound;1 million (2005:
&pound;3 million).</font><font size="2">
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Further details of
directors&#146; emoluments can be found in &#147;Board&#146;s Report to Shareholders on Directors&#146; Remuneration &#150; Remuneration for the year to 31 March
2006&#148; on pages 61 to 69.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Key management compensation</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Aggregate compensation for key management, being the directors and members of the Group Executive Committee, were as follows:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>2006</b></font></td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom">&nbsp;</td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short term employee benefits</font></td>
   <td width="9%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26</font></b></td>
   <td width="2%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="9%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18</font></td>
   <td width="2%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post-employment benefits:</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined benefit schemes</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined contribution schemes</font></font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payments</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">46</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">118</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p119"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34.&nbsp;&nbsp;&nbsp;Employees<br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An analysis of the average employee headcount by category of activity is shown below.</font>
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Number</font></b></font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="2"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">By
      activity:</font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operations</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,541</font></b></font></td>
    <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,923</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling
      and distribution</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,315</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,410</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Administration</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">31,816</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">29,426</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61,672</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57,759</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right"><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">By
      segment:</font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Mobile
      telecommunications:</font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,124</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,183</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Italy</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,123</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,213</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Spain</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,052</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,949</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10,620</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,260</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      Mobile Operations</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">22,895</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,858</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Common
      functions</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,628</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,201</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">57,442</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53,664</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      operations:</font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Germany</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,086</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,095</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">144</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,230</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,095</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
    <td align="right"><hr noshade size=1> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      continuing operations</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">61,672</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57,759</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right"><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued
      operations:</font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Japan</font></td>
    <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,733</font></b></font></td>
    <td align="right" bgcolor="#cccccc">&nbsp;</td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,033</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
    <td align="right"><hr noshade size=2> </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The cost incurred in respect of these employees (including directors) was:</font><font size="2"><sup><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
     <tr>
       <td align="right"><font size="1">&nbsp;</font></td>
       <td align="right"><font size="1">&nbsp;</font></td>
       <td align="right"><font size="1">&nbsp;</font></td>
       <td align="right"><font size="1">&nbsp;</font></td>
     <td align="right"><font size="1">&nbsp;</font></td>
	 </tr>
     <tr>
       <td align="left"><font size="1">&nbsp;</font></td>
       <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
       <td align="right"><font size="1">&nbsp;</font></td>
       <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
       <td><font size="1">&nbsp;</font></td>
     </tr>
     <tr>
       <td align="left"><font size="1">&nbsp;</font></td>
       <td align="right"><b><font size="1" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
       <td align="right"><font size="1">&nbsp;</font></td>
       <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
       <td><font size="1">&nbsp;</font></td>
     </tr>
     <tr>
       <td align="left"><hr noshade size=1>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=1>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=1>
       </td>
       <td align="right"><hr noshade size=1>
       </td>
     <td><font size="1">&nbsp;</font></td>     </tr>
     <tr>
       <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Continuing
           operations:</font></td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right">&nbsp;</td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Wages
           and salaries</font></td>
       <td width="10%" align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,879</font></b></font></td>
       <td width="2%" align="right" bgcolor="#cccccc">&nbsp;</td>
       <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,752</font></td>
       <td width="2%">&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Social
           security costs</font></td>
       <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">242</font></b></font></td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
           based payments</font></td>
       <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">109</font></b></font></td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</font></td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
           pension costs (see note 25)</font></td>
       <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">80</font></b></font></td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">70</font></td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><hr noshade size=1>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=1>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=1>
       </td>
       <td align="right"><hr noshade size=1>
       </td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left">&nbsp;</td>
       <td align="right" bgcolor="#cccccc"><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,310</font></b></font></td>
       <td align="right" bgcolor="#cccccc">&nbsp;</td>
       <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,185</font></td>
       <td>&nbsp;</td>
     </tr>
     <tr>
       <td align="left"><hr noshade size=2>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=2>
       </td>
       <td align="right" bgcolor="#cccccc"><hr noshade size=2>
       </td>
       <td align="right"><hr noshade size=2>
       </td>
       <td>&nbsp;</td>
     </tr>
  </table>
<tr>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
    </tr>
    <tr>
      <td width="3%" valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">From continuing operations. The cost incurred in respect of employees (including directors) from discontinued operations was &pound;155 million (2005: &pound;191
    million).</font></td>
    </tr>
  </table>
<tr>
  <p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p119a"></a>35.&nbsp;&nbsp;&nbsp;Subsequent
      events<br>
  </font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
        17 March 2006, the Group announced an agreement to sell its 97.7% holding
        in Vodafone Japan to SoftBank. The transaction completed on 27 April 2006,
        with the Group receiving cash of approximately &yen;1.42 trillion (&pound;6.9
        billion) including the repayment of intercompany debt of &yen;0.16 trillion
        (&pound;0.8 billion). In addition, the Group received non-cash consideration
        with a fair value of approximately &yen;0.23 trillion (&pound;1.1 billion),
        comprised of preferred equity and a subordinated loan. SoftBank also assumed
  debt of approximately &yen;0.13 trillion (&pound;0.6 billion).</font> </font></p>
  <p><font size="2"> <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
        13 December 2005, the Group announced it had agreed to acquire substantially
        all the assets and business of Telsim Mobil Telekomunikasyon (&#147;Telsim&#148;)
        from the Turkish Savings Deposit and Investment Fund. The acquisition completed
        on 24 May 2006. The cash paid on this date was US$4.67 billion (&pound;2.6
      billion).</font></font></p>
  <p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr align="right">
      <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
              Group Plc</font></b> Annual Report 2006</FONT></td>
      <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119</FONT></td>
    </tr>
  </table>
<tr>
  <hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
  <page>
    <a name="p120"></a>
  <p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
  <p><font size="3"> <b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
    to the Consolidated Financial Statements<br>
    </font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
  <p><font size="3"><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36.&nbsp;&nbsp;&nbsp;Related
    party transactions<br>
    </font></font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions
    with joint ventures and associated undertakings<br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions
    between the Company and its subsidiaries, joint ventures and associates represent
    related party transactions. Transactions with subsidiaries have been eliminated
    on consolidation. Transactions between the Company and its joint ventures
    are not material to the extent that they have not been eliminated through
    proportionate consolidation. Except as disclosed below, no material related
    party transactions have been entered into, during the year, which might reasonably
    affect any decisions made by the users of these Consolidated Financial Statements.</font>
  </p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions
        with associated undertakings:</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right">&nbsp;</td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sales
        of goods and services</font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">288</font></b></td>
      <td width="2%" align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">194</font></td>
      <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase
        of goods and services</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">268</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">243</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
        owed to joint ventures included within short term borrowings</font><font size="2"><sup><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></sup></font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">378</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,142</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
  </table>  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
    </tr>
    <tr>
      <td width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Loan
        arises through Vodafone Italy being part of a Group cash pooling arrangement.
        Interest is paid in line with short term market rates.</font> </td>
    </tr>
  </table>
<tr>
      <p>
        <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts owed by and owed to associated undertakings are disclosed within notes 17 and 27.</font><font size="2">
      </font></p>
      <p><font size="2">
        <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends received from associated undertakings are disclosed in the consolidated cash flow statement.</font>
      </font></p>
      <p><font size="2">
        <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group contributions to pension schemes are disclosed in note 25.</font>
      </font></p>
      <p><font size="2">
        <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Compensation paid to the Company&#146;s Board of directors and members of the Executive Committee is disclosed in note 33.</font></font>
      </p>
      <p>
        <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Transactions
        with directors<br>
        </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the year ended 31 March 2006, and as of 26 May 2006, neither any director nor any other executive officer, nor any associate of any director or any other executive officer, was
        indebted to the Company.</font><font size="2">
        </font></p>
      <p><font size="2">
      <font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Since 1 April 2005, the Company has not been, and is not now, a party to any other material transaction, or proposed transactions, in which any member of the key management personnel
        (including directors, any other executive officer, senior manager, any spouse or relative of any of the foregoing, or any relative of such spouse), had or was to have a direct or indirect material interest. </font></font>
      </p>
      <p><font size="2">
      <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p120a"></a>37.&nbsp;&nbsp;&nbsp;Financial information of joint ventures and associated undertakings<br>
      </font></font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Summary aggregated financial information of 50% or less owned entities accounted for using proportionate consolidation or under the equity method, extracted on a 100% basis from
        accounts prepared under IFRS at 31 March and for the years then ended, is set out below.</font>      </p>

  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Entities
        classified as associated undertakings</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td align="right"><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">30,204</font></b></td>
      <td width="2%" align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25,141</font></td>
      <td width="2%" align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
        profit</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,506</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,358</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit
        for the financial year</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,768</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,883</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">42,776</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">36,385</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,868</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,763</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">48,644</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42,148</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,365</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,475</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,367</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,579</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17,732</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,054</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity shareholders&#146; funds</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,951</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24,155</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
        interests</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">961</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">939</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity and liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">48,644</font></b></td>
      <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42,148</font></td>
      <td align="right"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
  </table>
      <p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
        <TR>
          <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120</FONT></TD>
          <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
                  Group Plc</font></b> Annual Report 2006</FONT></TD>
        </TR>
  </TABLE>
<tr>
  <hr noshade align="center" width="100%" size="2">

  <div style="page-break-before:always"></div>
  <page>
  <a name="p121"></a>
  <p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
          <tr>
            <td width="80%" align="right"><font size="1">&nbsp;</font></td>
            <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
          </tr>
          <tr>
            <td align="right"><font size="1">&nbsp;</font></td>
            <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
          </tr>
  </table>
<tr>
  <p>&nbsp;</p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Entities
        classified as joint ventures</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
      <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,919</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,946</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
        profit</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,071</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,611</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit
        for the financial year</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">786</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">658</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7,631</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,983</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,389</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,056</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        assets</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,020</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,039</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,384</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,458</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,164</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">362</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,548</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,820</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity shareholders&#146; funds</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,432</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,207</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
        interests</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">40</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr>
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity and liabilities</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,020</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,039</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
  </table>
  <p>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Summary aggregated financial information of Vodafone Omnitel N.V., extracted on a 100% basis from financial statements prepared under IFRS at 31 March and for the years then ended, is
    set out below.</font>
  </p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr align="right">
      <td width="76%" align="left"><font size="1">&nbsp;</font></td>
      <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size="1">&nbsp;</font></td>
      <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td align="left"><font size="1">&nbsp;</font></td>
      <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="left" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
      <td width="10%" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,619</font></b></td>
      <td width="2%" align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,518</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross
        profit</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,995</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,779</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit
        for the financial year</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,134</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,507</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <th align="left"><hr noshade size=2> </th>
      <th align="right" bgcolor="#cccccc"><hr noshade size=2> </th>
      <th align="right" bgcolor="#cccccc"><hr noshade size=2> </th>
      <th align="right"><hr noshade size=2> </th>
      <th align="right">&nbsp;</th>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        assets</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,280</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24,186</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        assets</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,837</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,117</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="left" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        assets</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,117</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30,303</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current
        liabilities</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,915</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,719</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current
        liabilities</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">312</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="left" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        liabilities</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,993</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,031</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="left" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity shareholders&#146; funds</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">21,124</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28,272</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=1> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="left" bgcolor="#cccccc"><hr noshade size=1> </td>
      <td align="right"><hr noshade size=1> </td>
      <td align="right"><font size="1">&nbsp;</font></td>
    </tr>
    <tr align="right">
      <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
        equity and liabilities</font></td>
      <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,117</font></b></td>
      <td align="left" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30,303</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td align="left"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2> </td>
      <td align="right"><hr noshade size=2> </td>
      <td align="right">&nbsp;</td>
    </tr>
  </table>
  <p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
            <tr align="right">
              <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
                      Group Plc</font></b> Annual Report 2006</FONT></td>
              <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">121</FONT></td>
            </tr>
  </table>
<tr>
  <hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page>
<a name="p122"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font size="3">
</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38.</font></td>
    <td valign="top"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
    GAAP information</font></td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        following is a summary of the effects of the differences between US GAAP
        and IFRS. The unaudited translation of pounds sterling amounts into US
        dollars is provided solely for convenience based on the Noon Buying Rate
        on 31 March 2006 of $1.7393: &pound;1. Amounts at 31 March 2005 and for
        the year then ended have been restated to give effect to the modified
        retrospective adoption of SFAS No. 123 (Revised 2004), discussed in (j)
    below.</font> </td>
  </tr>
</table>

<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss for the years ended 31 March</font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Restated</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reference</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue (IFRS)</font></td>
   <td width="8%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">51,048</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">29,350</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Items (decreasing)/increasing revenues:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued operations</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,642</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(944</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,108</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of consolidation</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(10,011</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,756</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,423</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Connection revenue</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">b</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,924</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,106</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,223</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue (US GAAP)</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41,319</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,756</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,370</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(Loss)/profit for the financial year (IFRS)</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(37,953</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21,821</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Items (increasing)/decreasing net loss:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments accounted for under the equity method</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">c</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,139</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,230</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,440</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Connection revenue and costs</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">b</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill and other intangible assets</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">d</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(24,870</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(14,299</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(15,534</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment losses</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">e</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">26,745</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,377</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">475</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amortisation of capitalised interest</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">f</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(188</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(108</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(105</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest capitalised during the year</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">f</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">63</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">36</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">g</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(74</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(42</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income taxes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">h</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,483</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8,902</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,680</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">i</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(165</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(95</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(108</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative effect of change in accounting principle: post employment benefits</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">j</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(195</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative effect of change in accounting principle: intangible assets</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">j</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,177</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss (US GAAP)</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23,081</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(13,270</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13,752</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholders&#146; equity
at 31 March</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Restated</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reference</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity (IFRS)</font></td>
   <td width="8%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">148,383</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,312</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,648</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Items (decreasing)/increasing shareholders&#146; funds:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments accounted for under the equity method</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">c</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,978</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,287</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(982</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Connection revenue and costs</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">b</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(9</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill and other intangible assets</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">d</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">56,618</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">32,552</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31,714</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capitalised interest</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">f</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,510</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,443</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,529</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">g</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">365</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">210</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">104</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income taxes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">h</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(52,795</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(30,354</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(38,856</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">i</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">197</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">113</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">152</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholders&#146; equity (US GAAP)</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">151,291</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">86,984</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">107,295</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p123"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US GAAP condensed
consolidated statement of operations</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Restated</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reference</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">$m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
   <td width="8%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">41,319</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,756</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,370</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost of sales</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(48,920</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(28,126</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(27,803</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling, general and administrative expense</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,552</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(4,342</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,779</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating loss</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(15,153</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,712</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(10,212</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of results in investments accounted for under the equity method</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,816</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,044</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,179</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,151</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(662</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(465</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss before income taxes</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(18,120</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(10,418</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12,856</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income tax benefit</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5,614</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,228</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,994</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(170</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(98</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(108</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss from continuing operations</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(12,676</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,288</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,970</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued operations, net of taxes</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(10,405</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,982</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">590</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative effect of changes in accounting principles, net of taxes</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,372</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(23,081</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(13,270</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13,752</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basic and diluted loss per share:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Cents</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pence</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pence</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss from continuing operations</font></font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(20.25</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11.64</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12.03</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued operations</font></font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(16.62</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(9.56</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.89</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative effect of changes in accounting principles</font></font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9.63</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net loss</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">k</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(36.87</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(21.20</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20.77</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued operations</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As discussed in note 29, the Group disposed of its interests in Vodafone Sweden during the year ended 31 March 2006. Vodafone Sweden has been classified as discontinued under US GAAP.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Summary of differences between IFRS and US GAAP</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Consolidated Financial Statements are prepared in accordance with IFRS, which differ in certain material respects from US GAAP. The differences that are material to the Group
relate to the following:</font></p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">a.&nbsp;&nbsp;&nbsp;Basis
of consolidation<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
basis of consolidation under IFRS differs from that under US GAAP. The Group
has interests in several
jointly controlled entities, the most significant being Vodafone Italy. Under
IFRS, the Group reports its interests in jointly controlled entities using proportionate
consolidation. The Group&#146;s share of the assets, liabilities, income, expenses and cash flows of jointly controlled entities are combined with the
equivalent items in the Consolidated Financial Statements on a line-by-line basis. Under US GAAP, the results and assets and liabilities of jointly controlled entities are incorporated in the Consolidated Financial Statements using the equity method
of accounting. Under the equity method, investments in jointly controlled entities are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Group&#146;s share of the net assets of the jointly controlled
entity, less any impairment in the value of the investment. The Group&#146;s
share of the assets, liabilities, income and expenses of jointly controlled entities
which are included in the Consolidated Financial Statements are reported in note
13.</font>
</font></p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">b.&nbsp;&nbsp;&nbsp;Connection
revenues and costs<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under IFRS and, for transactions subsequent to 30 September 2003, under US GAAP, customer connection revenue is recognised together with the related equipment revenue to the extent
that the aggregate equipment and connection revenue does not exceed the fair value of the equipment delivered to the customer. Any customer connection revenue not recognised together with related equipment revenue is deferred and recognised over the
period in which services are expected to be provided to the customer.</font>
</font></p>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For transactions prior to 1 October 2003, connection revenue under US GAAP is recognised over the period that a customer is expected to remain connected to a network. Connection costs
directly attributable to the income deferred are recognised over the same period. Where connection costs exceed connection revenue, the excess costs were charged in the statement of operations immediately upon connection. The balances of deferred
revenue and deferred charges as of 30 September 2003 continue to be recognised over the period that a customer is expected to remain connected to a network. </font>
</p></div>
<div style="float: right; width: 48%">
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">c.&nbsp;&nbsp;&nbsp;Investments
accounted for under the equity method<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">This
line item includes the net effect of IFRS to US GAAP adjustments affecting net
loss and shareholders&#146; equity
related to investments accounted for under the equity method, other than the
cumulative effect of change in accounting principle related to intangible assets,
which has been disclosed separately. The differences are:</font>
</font></p>
<p>
<b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjustment to the share of results in investments accounted for under the equity method</font></b>
</p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><div style="margin-left:3%; text-indent:-3%">     <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
       and other intangible assets associated with investments accounted for
    under the equity method</font></div></td>
      <td width="10%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(7,772</font></b></td>
      <td width="2%" valign="bottom" bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td width="10%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(8,864</font></td>
      <td width="2%" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impairment loss</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,600</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income taxes</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,863</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,362</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">79</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">62</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,230</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,440</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
<tr>
</table>
<p><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Adjustments
to the carrying value of investments accounted for under the equity method</font></b></p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td><font size="1"> &nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
      <td><font size="1">&nbsp;</font></td>
      <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
      <td><font size="1">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><div style="margin-left:3%; text-indent:-3%"> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill
          and other intangible assets associated with investments accounted for
          under the equity method</font></div></td>
      <td width="10%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9,539</font></b></td>
      <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td width="10%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,549</font></td>
      <td width="2%"><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Income
        taxes</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(11,997</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14,615</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">171</font></b></td>
      <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">84</font></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=1></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
      <td bgcolor="#cccccc"><hr noshade size=1></td>
      <td align="right"><hr noshade size=1></td>
      <td><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total</font></td>
      <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,287</font></b></td>
      <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
      <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(982</font></td>
      <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
    </tr>
    <tr>
      <td><hr noshade size=2></td>
      <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
      <td bgcolor="#cccccc"><hr noshade size=2></td>
      <td align="right"><hr noshade size=2></td>
      <td>&nbsp;</td>
    </tr>
    <tr>
  </table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">123</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p124"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>



<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<div style="float: left; width: 48%">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38.</font></td>
    <td valign="top"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US
    GAAP information </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></td>
  </tr>
  <tr>
    <td valign="top"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">d.</font></b></td>
    <td valign="top"><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Goodwill
    and other intangible assets</font></b></td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        differences related to goodwill and other intangible assets included
        in the reconciliations of net loss and shareholders&#146; equity relate
        to acquisitions prior to the
Group&#146;s adoption of SEC guidance issued on 29 September 2004. In determining
the value of licences purchased in business combinations prior to 29 September
2004, the Group allocated the portion of the purchase price, in excess of the
fair value attributed to the share of net assets acquired, to licences. The Group
had previously concluded that the nature of the licences and the related goodwill
acquired in business combinations was fundamentally indistinguishable.</font></td>
  </tr>
</table>


<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Following the adoption of the SEC guidance issued on 29 September 2004, the Group&#146;s US GAAP accounting policy for initial and subsequent measurement of goodwill and other
intangible assets, other than determination of impairment of goodwill and finite lived intangible assets, is substantially aligned to that of IFRS described in note 2. However, there are substantial adjustments arising prior to 29 September 2004 from different methods of transition to current IFRS and US GAAP as discussed below.</font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill arising before the date of transition to IFRS has been retained under IFRS at the previous UK GAAP amounts for acquisitions prior to 1 April 2004. The Group has assigned
amounts to licences and customer bases under US GAAP as they meet the criteria for recognition separately from goodwill, while these had not been recognised separately from goodwill under UK GAAP because they did not meet the recognition criteria.
Under US GAAP, goodwill and other intangible assets with indefinite lives are capitalised and not amortised, but tested for impairment at least annually. Intangible assets with finite lives are capitalised and amortised over their useful economic
lives. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under IFRS and US GAAP, the purchase price of a transaction accounted for as an acquisition is based on the fair value of the consideration. In the case of share consideration, under
IFRS the fair value of such consideration is based on the share price on the date of exchange. Under US GAAP, the fair value of the share consideration is based on the average share price over a reasonable period of time before and after the
proposed acquisition is agreed to and announced. This has resulted in a difference in the fair value of the consideration for certain acquisitions and consequently in the amount of goodwill capitalised under IFRS and US GAAP. </font></font>
</p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group&#146;s accounting policy for testing goodwill and finite lived intangible assets for impairment under IFRS is discussed in note 2. For the purpose of goodwill impairment
testing under US GAAP, the fair value of a reporting unit including goodwill is compared to its carrying value. If the fair value of a reporting unit is lower than its carrying value, the fair value of the goodwill within that reporting unit is
compared to its respective carrying value, with any excess carrying value written off as an impairment loss. The fair value of the goodwill is the difference between the fair value of the reporting unit and the fair value of the identifiable net
assets of the reporting unit. Intangible assets with finite lives are subject to periodic impairment tests when circumstances indicate that an impairment loss may exist. Where an asset&#146;s (or asset group&#146;s) carrying amount exceeds its sum
of undiscounted future cash flows, an impairment loss is recognised in an amount equal to the amount by which the asset&#146;s (or asset group&#146;s) carrying amount exceeds its fair value, which is generally based on discounted cash flows.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As a result of the above, there are significant amounts reported as goodwill and not amortised under IFRS which are reported as licences, customers and deferred tax liabilities under
US GAAP.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the year ended 31 March 2005, the Group undertook a number of transactions, including a stake increase in Vodafone Hungary. Under US GAAP, these transactions have resulted in
the Group assigning &pound;65 million to intangible assets, of which &pound;21 million was assigned to cellular licences and &pound;20 million to customer bases. A corresponding deferred tax liability of &pound;8 million was recognised. All
intangible assets acquired, other than goodwill, are deemed to be of finite life, with a weighted average amortisation period of 8 years, comprising licences of 10 years and customer bases of 5 years.</font></font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Finite-lived intangible assets</font></b></td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size="1"> &nbsp;</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licences</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross carrying value</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">154,135</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">152,831</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated amortisation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(75,170</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(61,188</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78,965</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">91,643</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Customer bases</font></td>
   <td align="right" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross carrying value</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,663</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,952</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated amortisation</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(1,071</font></b></td>
   <td bgcolor="#cccccc"><font size="2"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,333</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">592</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">619</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td>&nbsp;</td>
</tr>
</table></div>
<div style="float: right; width: 48%">

<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The total amortisation charge for the year ended 31 March 2006, under US GAAP, was &pound;15,011 million (2005: &pound;15,400 million). The estimated future amortisation charge on
finite-lived intangible assets for each of the next five years is set out in the following table. The estimate is based on finite-lived intangible assets recognised at 31 March 2006 using foreign exchange rates on that date. It is likely that future
amortisation charges will vary from the figures below, as the estimate does not include the impact of any future investments, disposals, capital expenditures or fluctuations in foreign exchange rates. </font>
</p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Year ending 31 March</font></td>
   <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><hr noshade size=1></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2007</font></td>
   <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,448</font></b></td>
   <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2008</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,362</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2009</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15,264</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2010</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,367</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2011</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,754</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><hr noshade size=2></td>
   <td align="right" bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc">&nbsp;</td>
</tr>
</table>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">e.&nbsp;&nbsp;&nbsp;Impairment
losses<br>
</font></b><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As
discussed in note 10, during the year ended 31 March 2006, the Group recorded
impairment losses
of &pound;23,000 million in relation to the goodwill of Vodafone Germany and
Vodafone Italy under IFRS. Under US GAAP, the Group evaluated the recoverability of the long-lived assets, comprised primarily of licences, in Vodafone Germany and Vodafone Italy using undiscounted cash flows and determined that the carrying amount
of these assets was recoverable. As a result, the IFRS impairment losses of &pound;23,000
million related to Vodafone Germany and Vodafone Italy were not recognised under
US GAAP. </font></font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the year ended
31 March 2006, the Group also recorded an impairment loss under IFRS of &pound;515 million and &pound;4,900 million in relation to the goodwill of Vodafone
Sweden and Vodafone Japan, respectively. Under US GAAP, the Group recognised impairment losses of licences of &pound;883 million and &pound;8,556 million in Vodafone Sweden and in Vodafone Japan. As a result of these impairment losses, the Group
released related deferred tax liabilities of &pound;247 million and &pound;3,508 million, which have been included in the adjustment for income taxes. The impairment losses on Vodafone Sweden&#146;s and Vodafone Japan&#146;s
licences have been
included in discontinued operations under US GAAP.</font>
</font></p>
<p><font size="2">
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cumulative cumulative foreign currency gains and losses arising on the translation of the assets and liabilities into sterling have been included in the carrying value of a
discontinued operation when assessing that carrying value for impairment.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">f.&nbsp;&nbsp;&nbsp;Capitalised
interest</font></b><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under IFRS, the Group has adopted the benchmark accounting treatment for borrowing costs and, as a result, the Group does not capitalise interest costs on borrowings in respect of the
acquisition or construction of tangible and intangible fixed assets. Under US GAAP, the interest costs of financing the acquisition or construction of network assets and other fixed assets is capitalised during the period of construction until the
date that the asset is placed in service. Interest costs of financing the acquisition of licences are also capitalised until the date that the related network service is launched. Capitalised interest costs are amortised over the estimated useful
lives of the related assets.</font>
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">g.&nbsp;&nbsp;&nbsp;Other<br>
</font></b></font><font size="2"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial instruments</font></b><br>
</font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under IFRS, the equity put rights and similar arrangements are classified as financial liabilities. The liabilities are measured as the present value of the estimated exercise prices
of the equity put rights and similar arrangements, which is the fair value of the underlying shares on the date of exercise, with any changes in this estimate recognised in the consolidated income statement each period. Under US GAAP, these equity
put rights and similar arrangements are generally classified as derivative instruments. Consequently, this financial liability is eliminated for US GAAP purposes and the equity put rights and similar arrangements are accounted for at fair value.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pensions<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under both IFRS and US GAAP, the Group recognises actuarial gains and losses as they are incurred. Under IFRS, these gains and losses are recognised directly in equity. These gains
and losses are included in the determination of net loss under US GAAP.</font>
</font></p>
<p><font size="2">
<b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other recognised income and expense<br>
</font></b></font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under both IFRS and US GAAP, the cumulative foreign currency gains and losses arising on the translation of the assets and liabilities of entities with a functional currency other
than sterling are reclassified from accumulated other recognised income and expense and included in the determination of profit for the period or net loss on sale or liquidation of a foreign entity. Differences in the amount reclassified arise due
to differences in the carrying values of the underlying net assets and because the Group deemed the cumulative translation differences at the date of transition to IFRS to be zero.</font>
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">124</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During the
  year ended 31 March 2006, &pound;9 million of foreign currency losses were reclassified from other recognised income and expense and included in the determination of US
GAAP net loss as a result of the disposal of Vodafone Sweden. During the year ended 31 March 2005, &pound;63 million of foreign currency losses were reclassified from other recognised income and expense and included in the determination of US GAAP
net loss as a result of the partial disposal of Vodafone Egypt. Under IFRS, these gains amounted to &pound;36
million for the year ended 31 March 2006.</font><font size="2">
</font></p>
  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>h.&nbsp;&nbsp;&nbsp;Income taxes<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
most significant component of the income tax adjustment is due to temporary differences
between the book basis and tax basis of intangible assets other than goodwill
acquired in business combinations prior to 29 September 2004, resulting in the
recognition of deferred tax liabilities under US GAAP. This line item also includes
the tax effects of the other pre-tax IFRS to US GAAP adjustments described above.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under IFRS, the Group does not recognise a deferred tax liability on the outside
basis differences in its investment in associates to the extent that the Group
controls the timing of the reversal of the difference and it is probable the
difference will not reverse in the foreseeable future. Under US GAAP, the Group
recognises deferred tax liabilities on these differences.</font></p>


  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>i.&nbsp;&nbsp;&nbsp;Minority interests<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority
interests are reported as a component of total equity under IFRS and, accordingly,
profit for the period does not include an adjustment for profit for the period
attributable to minority interests. Under US GAAP, minority interests are reported
outside
of shareholders&#146; equity and the minority interest in the income of consolidated
subsidiaries is an adjustment to US GAAP net income.</font></p>


  <p><font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">j.&nbsp;&nbsp;&nbsp;Changes
    in accounting principles<br>
</font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Post
employment benefits<br>
</font></b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
the second half of the year ended 31 March 2005, the Group amended its policy
for accounting for actuarial gains and losses arising from its pension obligations
effective 1 April 2004. Until 31 March 2004, the Group used a corridor approach
under SFAS
No. 87, &#147;Employers&#146; Accounting for Pensions&#148; in which actuarial
gains and losses were deferred and amortised over the expected remaining service
period of the employees. The Group now recognises these gains and losses through
the income statement in the period in which they arise as the new policy more
faithfully represents the Group&#146;s financial position and more closely aligns
the Group&#146;s US GAAP policy to its IFRS policy of immediate recognition of
these items.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The cumulative effect
on periods prior to adoption of &pound;288 million has been shown, net of tax
of &pound;93 million, as a cumulative effect of a change in accounting principle
in the reconciliation of net loss. The effect of the change in the year ended
31 March 2005 was to increase loss from continuing operations by &pound;55 million
(or 0.08 pence per share).</font></p>


<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Intangible assets<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">On
29 September 2004, the SEC Staff issued new guidance on the interpretation of
SFAS No. 142 in relation to the valuation of intangible assets in business combinations
and impairment testing. This guidance has been codified as EITF Topic D-108.
Historically, the Group assigned to mobile licences the residual purchase price
in business combinations in excess of the fair values of all assets and liabilities
acquired other than mobile licences and goodwill. This approach was on the basis
that mobile licences were indistinguishable from goodwill. The new SEC guidance
requires the Group to distinguish between mobile licences and goodwill. However,
the new guidance does not permit the amount historically reported as mobile licences
to be subsequently reallocated between mobile licences and goodwill.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The new guidance will affect the allocation of the purchase price in future business
combinations involving entities with mobile licences. The Group has applied the
guidance relating to the allocation of purchase price to all business combinations
consummated subsequent to 29 September 2004. This has resulted in values being
assigned to licences using a direct valuation method, with any remaining residual
purchase price
allocated to goodwill.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In impairment testing of mobile licences associated with the Verizon Wireless
equity method investment accounted for under SFAS No. 142, the Group has used
a similar residual approach to determine the fair value of the licences when
testing the asset for recoverability. In their announcement, the SEC Staff stated
that the residual method of accounting for intangible assets should no longer
be used and that companies should perform an impairment test using a direct method
on all assets which were previously
tested using a residual method. The Group&#146;s licences in other businesses
are not tested for recoverability using a residual method and are, therefore,
not
affected by the new guidance.</font></p>

</div>
<div style="float: right; width: 48%">

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group completed
its transitional impairment test of Verizon Wireless&#146; mobile licences as
of 1 January 2005. This resulted in a pre-tax charge of &pound;11,416 million.
This
impairment loss is included, net of the related tax of &pound;5,239 million,
in the cumulative effect of change in accounting principle in the reconciliation
of net loss. The tax effect comprises the release of &pound;1,220 million representing
the
Group&#146;s share of Verizon Wireless&#146; deferred tax liabilities and &pound;4,019
million deferred tax liabilities representing taxes recognised by the Group on
its investment in Verizon Wireless. Fair value was determined as the present
value of estimated future net cash flows allocable to the mobile licences. Verizon
Wireless is included in the segment &#147;Mobile telecommunications &#150; US&#148;.</font></p>


<p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Share-based payments<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group adopted
SFAS No. 123 (Revised 2004), &#147;Share-based Payment&#148;, and related FASB
staff positions on 1 October 2005. SFAS No. 123 (Revised 2004) eliminates the
option to account for share-based payments to employees using the intrinsic value
method and requires share-based payments to be recorded using the fair value
method. Under the fair value method, the compensation cost for employees and
directors is determined at the date awards are granted and recognised over the
service period.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Concurrent with the adoption of SFAS No. 123 (Revised 2004), the Group adopted
Staff Accounting Bulletin (SAB) 107. SAB 107 summarises the views of the SEC
Staff regarding the interaction between SFAS No. 123 (Revised 2004) and certain
SEC rules and regulations and
provides the staff&#146;s views regarding the valuation of share-based payment
arrangements for public companies.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group has adopted SFAS No. 123 (Revised 2004) using the modified retrospective
method. Under this method, the Group has adjusted the financial statements for
the periods between 1 April 1995 and 30 September 2005 to give effect to the
fair value method of accounting for awards granted, modified or settled during
those periods on a basis consistent with the pro forma amounts disclosed under
the requirements
of the original
SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148;. The provisions
of SFAS No. 123 (Revised 2004) will be applied to all awards granted, modified,
or settled after 1 October 2005. The effect of applying the original provisions
of SFAS No. 123 under the modified retrospective method of adoption on the year
ended 31 March 2005 was to decrease loss before income taxes, loss from continuing
operations and net loss by &pound;66 million, &pound;30 million and &pound;30
million
respectively (six months ended 30 September 2005: increases of &pound;4 million, &pound;8
million and &pound;8 million respectively). The adjustment also had the effect
of decreasing both basic and diluted loss per share from continuing operations
and net loss by 0.05 pence (six months ended 30 September 2005: increase 0.01
pence). The adoption of SFAS No. 123 (Revised 2004) increased shareholders&#146; equity
at 1 April 2004 by &pound;112
million.</font></p>


  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>k.&nbsp;&nbsp;&nbsp;Loss per share<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
share options and shares described in note 20 were excluded from the calculation
of diluted loss per share as the effect of their inclusion in the calculation
would be
antidilutive due to the Group recognising a loss in all periods presented.</font></p>


  <p><font size="2"> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p125"></a>39.&nbsp;&nbsp;&nbsp;New
    accounting standards</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
    </font></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group has not adopted the following standards, which have been issued by the
    IASB or the International Financial Reporting Interpretations Committee (&#147;IFRIC&#148;).
    The Group does not currently believe the adoption of these standards will
    have a material impact on the consolidated results or financial position of
    the Group.</font></p>


<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IAS
       Amendment, &#147;Amendment to IAS 1, &#147;Presentation of Financial Statements&#148; &#150; Capital
       Disclosures&#148; (effective
       for annual periods beginning after 1 January 2007, with earlier application
    encouraged).</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       4, &#147;Determining whether an Arrangements contains a Lease&#148; (effective
    from 1 April 2006).</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       5, &#147;Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds&#148; (effective
    from 1 April 2006).</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       6, &#147;Liabilities arising from Participating in a Specific Market &#150; Waste Electrical and Electronic Equipment&#148; (effective
       from 1 April
2006).</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       7, &#147;Applying the Restatement Approach under IAS 29, &#147;Financial Reporting in Hyperinflationary Economies&#148; (effective
       from 1 April
2006).</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       8, &#147;Scope of IFRS 2&#148; (effective for annual periods beginning
       on or after 1 May 2006, with early application encouraged). This interpretation
       has
not yet been adopted for use in the EU.</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRIC
       9, &#147;Reassessment of Embedded Derivatives&#148; (effective for annual
       periods beginning on or after 1 June 2006, with early application encouraged).
       This
interpretation has not yet been adopted for use in the EU.</font></td>
</tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">125</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p126"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Consolidated Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
  <p>&nbsp;</p>
<div style="float: left; width: 48%">
  <p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40.&nbsp;&nbsp;&nbsp;Transition
    to IFRS on first-time adoption<br>
    </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis
    of preparation of IFRS financial information</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
    </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group&#146;s Annual Report for the year ended 31 March 2006 is the first annual</font><font size="2">
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated
    Financial Statements that comply with IFRS. The Consolidated Financial Statements
    have been prepared in accordance with the significant accounting policies
    described in note 2. The Group has applied IFRS 1, &#147;First-time Adoption
    of International Financial Reporting Standards&#148; in preparing these statements.</font></p>

<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS 1 exemptions<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS 1 sets out the procedures that the Group must follow when it adopts IFRS for the first time as the basis for preparing its Consolidated Financial Statements. The Group is
required to establish its IFRS accounting policies as at 31 March 2006 and, in general, apply these retrospectively to determine the IFRS opening balance sheet at its date of transition, 1 April 2004. This standard provides a number of optional
exemptions to this general principle. These are set out below, together with a description in each case of the exemption adopted by the Group.</font><font size="2">
</font></p>
<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Business combinations that occurred before the opening IFRS balance sheet
<br>
&nbsp;&nbsp;&nbsp;date (IFRS 3, &#147;Business Combinations&#148;)<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group has elected not to apply IFRS 3 retrospectively to business combinations
that took place before the date of transition. As a result, in the opening balance
sheet, goodwill arising from past business combinations remains as stated under
UK GAAP at 31 March 2004.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
If the Group had elected to apply IFRS 3 retrospectively, the purchase consideration
would have been allocated to the following major categories of acquired intangible
assets and liabilities based on their fair values: licence and spectrum fees,
brands, customer bases, and deferred tax liabilities. Goodwill would have been
recognised as the excess of the purchase consideration over the fair values of
acquired assets and
liabilities &#150; retrospective application may have resulted in an increase
or decrease to goodwill. The fair values of the acquired intangible assets would
have been amortised over their respective useful lives.</font></p>
</div>
<div style="float: right; width: 48%">

<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Employee benefits &#150; actuarial gains and losses (IAS 19, &#147;Employee
Benefits&#148;)<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group has elected to recognise all cumulative actuarial gains and losses in relation
to employee benefit schemes at the date of transition.</font></p>

<p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
<b>Share-based payments (IFRS 2, &#147;Share-based Payment&#148;)<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group has elected to apply IFRS 2 to all relevant share-based payment transactions
granted but not fully vested at 1 April 2004.</font></p>

  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>Financial instruments (IAS 39, &#147;Financial Instruments: Recognition
    and <br>&nbsp;&nbsp;&nbsp;Measurement&#148; and IFRS 7, &#147;Financial Instruments:
    Disclosures&#148;)<br>
    </b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group has applied IAS 32 and IAS 39 for all periods presented and has therefore
    not taken advantage of the exemption in IFRS 1 that would enable the Group
    to only apply these standards from 1 April 2005.</font></p>

  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>Cumulative translation differences (IAS 21, &#147;The Effects of Changes
    in <br>
&nbsp;&nbsp;&nbsp;Foreign Exchange Rates&#148;)<br>
    </b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group has deemed the cumulative translation differences at the date of transition
    to IFRS to be zero. As a result, the gain or loss of a subsequent disposal
    of any foreign operation will exclude the translation differences that arose
    before the date of transition to IFRS.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
If the Group had not applied the exemption, the gain or loss on any disposals
after the transition date would include additional cumulative transaction differences
relating to the
businesses disposed of.</font></p>

  <p><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">
    <b>Fair value or revaluation as deemed cost (IAS 16, &#147;Property, Plant
    and <br>
&nbsp;&nbsp;&nbsp;Equipment&#148; and IAS 38, &#147;Intangible Assets&#148;)<br>
    </b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
    Group has not elected to measure any item of property, plant and equipment
    or intangible asset at the date of transition to IFRS at its fair value.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Impact of transition to IFRS<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following
is a summary of the effects of the differences between IFRS and UK GAAP on the
Group&#146;s total equity shareholders&#146; funds and profit for the financial
year for the years previously reported under UK GAAP following the date of transition
to IFRS.</font></p>
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total
equity shareholders&#146; funds</font></b></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2004</font></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2005</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><b><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></b></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td></tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds (UK GAAP)</font></td>
   <td width="5%" align="right"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111,924</font></td>
   <td width="2%"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,317</font></td>
   <td width="2%"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Measurement and recognition differences:</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(164</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,986</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proposed dividends</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">b</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">728</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,395</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial instruments</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">c</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">385</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">350</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payments</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">d</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">63</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined benefit pension schemes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">e</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(257</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(361</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred and current taxes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">f</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,011</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(774</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(66</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(176</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
       equity shareholders&#146; funds (IFRS)</font></td>
   <td align="right">&nbsp;</td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111,551</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,800</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td align="right"><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><hr noshade size=2></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
</table>
<br>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Profit for the year ended 31 March 2005</font></b></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td>&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss on ordinary activities after taxation (UK GAAP)</font></td>
   <td width="5%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right">&nbsp;</td>
   <td width="2%" align="right">&nbsp;</td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,938)</font></td>
   <td width="2%"><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Measurement and recognition differences:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,263</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial instruments</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">c</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(174</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based payments</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">d</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(91</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Defined benefit pension schemes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">e</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred and current taxes</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">f</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(130</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation differences:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation of equity accounted investments</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">g</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
   <td><font size="2">&nbsp;&nbsp;&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation of joint ventures</font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">h</font></td>
   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(384</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>

</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><hr noshade size=1>
  </td>
  <td><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit
       for the financial year (IFRS)</font></td>
   <td>&nbsp;</td>

   <td align="right">&nbsp;</td>
   <td align="right">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2>
  </td>
  <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There were no significant differences between IFRS and UK GAAP on the Group&#146;s cash flow statement for the year ended 31 March 2005.</font></p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">126</font></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p127"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>

<div style="float: left; width: 48%">

<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal differences between IFRS and UK GAAP<br>
</font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Measurement and recognition differences<br>
    </font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>a.&nbsp;&nbsp;&nbsp;Intangible
    assets<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IAS
38, &#147;Intangible Assets&#148; requires that goodwill is not amortised. Instead
it is subject to an annual impairment review. As the Group has elected not to
apply IFRS 3 retrospectively to business combinations prior to the opening balance
sheet date under IFRS, the UK GAAP goodwill balance, after adjusting for items
including the impact of proportionate consolidation of joint ventures, at 31
March 2004
(&pound;78,753 million) has been included in the opening IFRS consolidated balance
sheet and is no longer amortised.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under IAS 38, capitalised payments for licences and spectrum fees are amortised
on a straight line basis over their useful economic life. Amortisation is charged
from the commencement
of service of the network. Under UK GAAP, the Group&#146;s policy was to amortise
such costs in proportion to the capacity of the network during the start up period
and then on a straight-line basis thereafter.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>b.&nbsp;&nbsp;&nbsp;Proposed
    dividends<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IAS
10, &#147;Events after the Balance Sheet Date&#148; requires that dividends declared
after the balance sheet date should not be recognised as a liability at that
balance sheet date as the liability does not represent a present obligation as
defined by IAS 37, &#147;Provisions, Contingent Liabilities and Contingent Assets&#148;.</font></p>
  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>c.&nbsp;&nbsp;&nbsp;Financial
    instruments<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IAS
32, &#147;Financial Instruments: Disclosure and Presentation&#148; and IAS 39, &#147;Financial
Instruments: Recognition and Measurement&#148; address the accounting for, and
reporting of, financial instruments. IAS 39 sets out detailed accounting requirements
in relation to financial assets and liabilities.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
All derivative financial instruments are accounted for at fair market value whilst
other financial instruments are accounted for either at amortised cost or at
fair value depending on their classification. Subject to certain criteria, financial
assets and financial liabilities may be designated as forming hedge relationships
as a result of which fair value changes are offset in the income statement or
charged/credited to equity
depending on the nature of the hedge relationship.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>d.&nbsp;&nbsp;&nbsp;Share-based
    payments<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS
2, &#147;Share-based Payment&#148; requires that an expense for equity instruments
granted be recognised in the financial statements based on their fair value at
the date of grant. This expense, which is primarily in relation to employee option
and performance share schemes, is
recognised over the vesting period of the scheme.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
While IFRS 2 allows the measurement of this expense to be calculated only on
options granted after 7 November 2002, the Group has applied IFRS 2 to all instruments
granted but not fully vested as at 1 April 2004. The Group has adopted the binomial
model for the purposes of calculating fair value under IFRS, calibrated using
a Black-Scholes framework.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>e.&nbsp;&nbsp;&nbsp;Defined
    benefit pension schemes<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group elected
to adopt early the amendment to IAS 19, &#147;Employee Benefits&#148; issued
by the IASB on 16 December 2004 which allows all actuarial gains and losses to
be
charged or credited to equity.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group&#146;s opening IFRS balance sheet at 1 April 2004 reflects the assets
and liabilities of the Group&#146;s defined benefit schemes totalling a net liability
of &pound;154
million. The transitional adjustment of &pound;257 million to opening reserves
comprises the reversal of entries in relation to UK GAAP accounting under SSAP
24 less the recognition of the net liabilities of the Group&#146;s and associated
undertakings&#146; defined benefit schemes.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>f.&nbsp;&nbsp;&nbsp;Deferred
    and current taxes<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
scope of IAS 12, &#147;Income Taxes&#148; is wider than the corresponding UK
GAAP standards, and requires deferred tax to be provided on all temporary differences
rather than just timing differences
under UK GAAP.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
As a result, taxes in the Group's IFRS opening balance sheet at 1 April 2004
were adjusted by &pound;1.0 billion. This includes an additional deferred tax
liability of &pound;1.8 billion in respect of the differences between the carrying
value and tax written down value of the Group's investments in associated undertakings
and joint ventures. This comprises &pound;1.3 billion in respect of differences
that arose when US
investments were acquired and &pound;0.5 billion in respect of undistributed
earnings of certain associated undertakings and joint ventures, principally Vodafone
Italy. UK GAAP does not permit deferred tax to be provided on the undistributed
earnings of the Group&#146;s associated undertakings and joint ventures until
there is a binding obligation to distribute those earnings.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
IAS 12 also requires
deferred tax to be provided in respect of the Group&#146;s liabilities under
its post employment benefit arrangements and on other employee benefits such
as share
and share option schemes.</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Presentation differences<br>
    </font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">g.&nbsp;&nbsp;&nbsp;Presentation
    of equity accounted investments<br>
</font></b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under
IFRS, in accordance
with IAS 1, &#147;Presentation of Financial Statements&#148;, &#147;Tax on profit&#148; on
the face of the consolidated income statement comprises the tax charge of the
Company, its subsidiaries and its share of the tax charge of joint ventures.
The Group&#146;s share of its associated undertakings&#146; tax charges is shown
as part of &#147;Share of result in associated undertakings&#148; rather than
being disclosed as part of the tax charge under UK GAAP.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In respect of the
Verizon Wireless partnership, the line &#147;Share of result in associated undertakings&#148; includes
the Group&#146;s share of pre-tax partnership income and the
Group&#146;s share of the post-tax income attributable to corporate entities
(as determined for US corporate income tax purposes) held by the partnership.
The tax attributable to the Group&#146;s share of allocable partnership income
is included as
part of &#147;Tax on profit&#148; in the consolidated income statement. This
treatment reflects the fact that tax on allocable partnership income is, for
US corporate income tax purposes, a liability of the partners and not the partnership.
Under UK
GAAP, the Group&#146;s share of minority interests in associated undertakings
was reported in minority interests, under IFRS this is reported within investments
in associated undertakings.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>h.&nbsp;&nbsp;&nbsp;Presentation
    of joint ventures<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IAS
31, &#147;Interests in Joint Ventures&#148; defines a jointly controlled entity
as an entity where unanimous consent over the strategic financial and operating
decisions is required between the parties sharing control. Control is defined
as the power to govern the financial and operating decisions of an entity so
as to obtain economic benefit from it.</font></p>

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Group has reviewed the classification of its investments and concluded that
the Group&#146;s 76.9% (31 March 2005: 76.8%) interest in Vodafone Italy, classified
as a subsidiary undertaking under UK GAAP, should be accounted for as a joint
venture under IFRS. In addition, the Group&#146;s interests in South Africa,
Poland, Kenya and Fiji, which were classified as associated undertakings under
UK GAAP, have been classified as joint ventures under IFRS as a result of the
contractual rights held by the Group. The Group&#146;s interest in Romania was
classified as a joint venture until the acquisition of the controlling stake
from Telesystem International Wireless Inc. of Canada completed on 31 May 2005.
The Group has adopted proportionate consolidation as the method of accounting
for these six entities.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under UK GAAP, the revenue, operating profit, net financing costs and taxation
of Vodafone Italy were consolidated in full in the income statement with a corresponding
allocation to minority interest. Under proportionate consolidation, the Group
recognises its share of all income statement lines with no allocation to minority
interest. There is no effect on the result for a financial period from this adjustment.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under UK GAAP, the
Group&#146;s interests in South Africa, Poland, Romania, Kenya and Fiji were
accounted for under the equity method, with the Group&#146;s share of operating
profit, interest and tax being recognised separately in the consolidated income
statement. Under proportionate consolidation, the Group recognises its share
of all income statement lines. There is no effect on the result for a financial
period from this
adjustment.</font></p>


<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under UK GAAP, the Group fully consolidated the cash flows of Vodafone Italy,
but did not consolidate the cash flows of its associated undertakings. The IFRS
consolidated cash flow
statement reflects the Group&#146;s share of cash flows relating to its joint
ventures on a line by line basis, with a corresponding recognition of the Group&#146;s
share of net debt for each of the proportionately consolidated entities.</font></p>

<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Other differences<br>
    </font><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">i.&nbsp;&nbsp;&nbsp;Reclassification
    of non-equity minority interests to liabilities<br>
</font></b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
primary impact of the implementation of IAS 32 is the reclassification of the
$1.65 billion
preferred shares issued by the Group&#146;s subsidiary, Vodafone Americas Inc.,
from non-equity minority interests to liabilities. The reclassification at 1
April 2004 was &pound;875 million. Dividend payments by this subsidiary, which
were previously reported in the Group&#146;s income statement as non-equity minority
interests, have been reclassified to
financing costs.</font></p>

  <p><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>j.&nbsp;&nbsp;&nbsp;Fair
    value of available-for-sale financial assets<br>
</b></font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Group has classified certain of its cost-based investments as available-for-sale
financial assets as defined in IAS 39. This classification does not reflect the
intentions of management in relation to these investments. These assets are measured
at fair value at each reporting date with movements in fair value taken to equity.
At
1 April 2004, a cumulative increase of &pound;233 million in the fair value over
the
carrying value of these investments was recognised.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">127</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p128"></a>
<p><a href="#contents4"><font size="2">Back to Content</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
40.&nbsp;&nbsp;&nbsp;Transition
to IFRS on first-time adoption</font><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
</font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reconciliation of the UK GAAP consolidated profit and loss account to the IFRS consolidated income statement<br>
</font><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Year ended 31 March 2005</font></b></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Measurement</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and recognition</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Discontinued</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK GAAP</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK GAAP format</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS format</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Turnover</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34,133</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(60</font></td>
   <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,395</font></td>
   <td width="2%" align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26,678</font></td>
   <td width="2%" align="left">&nbsp;</td>
   <td width="25%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Revenue</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost of sales</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(20,753</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(711</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,664</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(15,800</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost of sales</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross profit</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,380</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(771</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,731</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10,878</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Gross profit</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling and distribution costs</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,031</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(15</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">397</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,649</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Selling and distribution expenses</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Administrative expenses</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(16,653</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">315</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,812</font></td>
   <td align="left">&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">670</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,856</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Administrative expenses</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">404</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,576</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,980</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of result in associated</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">undertakings</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(315</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(160</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(475</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other income and expense</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating loss</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,304</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">404</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,442</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(664</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,878</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating profit</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share of result in associated undertakings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,193</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,193</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exceptional non-operating items</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(13</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-operating income and expense</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">324</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(21</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">294</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investment income</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net interest payable and similar items</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(604</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(113</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(183</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(880</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financing costs</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss on ordinary activities before taxation</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,702</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(583</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,236</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(666</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,285</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit before taxation</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on loss on ordinary activities</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,236</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">538</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">265</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(436</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,869</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tax on profit</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss on ordinary activities after taxation</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,938</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,501</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,102</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,416</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit on ordinary activities after</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">taxation from continuing operations</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,102</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit on ordinary activites after</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">taxation from discontinued</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">operations</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,938</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(45</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,501</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,518</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit for the financial year</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interest</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(602</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">45</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">449</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(108</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit for the financial year</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">attributable to minority interests</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Loss for the financial year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,540</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,950</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,410</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit for the financial year</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left">&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">attributable to equity shareholders</font></td>
</tr>
<tr>
  <td colspan="12"><hr noshade size=2></td>
  </tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">128</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p129"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reconciliation of the UK GAAP consolidated balance sheet to the IFRS consolidated balance sheet<br>
</font><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>1
April 2004</b></font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Measurement</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and recognition</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> GAAP</font></font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK GAAP format</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS format</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed assets:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current assets:</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">93,622</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,002</font></td>
   <td width="2%" align="left"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94,624</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="25%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tangible assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,083</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(971</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,112</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21,226</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(800</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,426</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,049</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,282</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">671</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></td>
   <td align="left"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">807</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax assets</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">221</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">212</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133,980</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">892</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(409</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">134,463</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets:</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Stocks</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">458</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">468</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Debtors</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6,901</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(6,901</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">372</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(103</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">269</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation recoverable</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,148</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">305</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,453</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,381</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,381</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash at bank and in hand</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,409</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,381</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,851</font></td>
   <td align="center"><font size="2">&nbsp;</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,149</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,381</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">273</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,041</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,129</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(489</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(136</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146,504</font></td>
   <td align="center"><font size="2">&nbsp;</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total assets</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=2></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital and reserves:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity:</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,280</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,280</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,154</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,154</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,136</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,136</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other reserve</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,640</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">310</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,950</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additional paid-in capital</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">233</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other reserves</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit and loss account</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43,014</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(916</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(43,930</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Retained losses</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111,924</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(373</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">111,551</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,007</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,198</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">809</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">114,931</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,571</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">112,360</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Creditors &#150; amounts falling due after more than one year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,975</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12,975</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current liabilities:</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,224</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,859</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,083</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term borrowings</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,314</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,421</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,735</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(73</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">227</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">154</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,197</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(3,858</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">344</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">751</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(449</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">302</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,172</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(617</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,063</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,618</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Creditors &#150; amounts falling due within one year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,026</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(15,026</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current liabilities:</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,054</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">788</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,842</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term borrowings</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,275</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(356</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,919</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current taxation liabilities</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,643</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,068</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,575</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">182</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">190</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">15,026</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">128</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(628</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,526</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,129</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(489</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(136</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146,504</font></td>
   <td align="center"><font size="2">&nbsp;</font></td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity and liabilities</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=2></td>
  </tr>
</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">129</FONT></td>
  </tr>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p130"></a>
<p><a href="#contents4"><font size="2">Back to Content</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
      to the Consolidated Financial Statements<br>
</font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">40.&nbsp;&nbsp;&nbsp;Transition
    to IFRS on first-time adoption</font> <font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><br>
    <font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"> <b>31
March 2005</b></font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td width="38%"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Measurement</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Presentation</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and recognition</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK GAAP</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">differences</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
   <td align="center"><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK GAAP format</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right"><font size="1">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="left"><font size="1">&nbsp;</font></td>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">IFRS format</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fixed assets:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current assets:</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td width="7%"><font size="2">&nbsp;</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,673</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,326</font></td>
   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">80,999</font></td>
   <td width="2%">&nbsp;</td>
   <td width="25%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Goodwill</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Intangible assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">83,464</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(68,673</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,358</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,149</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other intangible assets</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Tangible assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,398</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(956</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17,442</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Property, plant and equipment</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19,398</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">836</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,234</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments in associated undertakings</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">852</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">329</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,181</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,084</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,184</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax assets</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">613</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(28</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">585</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">122,112</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,709</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,965</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137,786</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current assets:</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Stocks</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">430</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">440</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Inventory</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Debtors</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7,698</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(7,698</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">268</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(230</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation recoverable</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,049</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">115</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,164</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other receivables</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">816</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(816</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash at bank and in hand</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,850</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">816</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">103</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,769</font></td>
   <td align="center">&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cash and cash equivalents</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,794</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,381</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,411</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total assets</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133,906</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(672</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,963</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
   <td align="center">&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total assets</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=2></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital and reserves:</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity:</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,284</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,284</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,121</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,121</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other reserve</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,556</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">525</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100,081</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additional paid-in capital</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,781</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,781</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accumulated other recognised</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;income and expense</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit and loss account</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(51,688</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,177</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(39,511</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Retained losses</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">99,317</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,483</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,800</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity shareholders&#146; funds</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority interests</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,818</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2,970</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(152</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Minority Interests</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102,135</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,513</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">113,648</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Creditors &#150; amounts falling due after more than one year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12,382</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(12,382</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Non-current liabilities:</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">11,613</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,577</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,190</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Long-term borrowings</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3,481</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,368</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,849</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred tax liabilities</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(171</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">307</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Post employment benefits</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for liabilities and charges</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,552</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(4,235</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">319</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for other liabilities and</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;charges</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">797</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(359</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">438</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16,934</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(897</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,895</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,932</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Creditors &#150; amounts falling due within one year</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,837</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(14,837</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current liabilities:</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">392</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,611</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2,003</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Short-term borrowings</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,759</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(406</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,353</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current taxation liabilities</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,717</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1,684</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8,033</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Trade and other payables</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">194</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">228</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Provisions for other liabilities and</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;charges</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,837</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">225</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(445</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14,617</font></td>
   <td>&nbsp;</td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=1></td>
  </tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133,906</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(672</font></td>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">13,963</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147,197</font></td>
   <td align="center">&nbsp;</td>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity and liabilities</font></td>
</tr>
<tr>
  <td colspan="10"><hr noshade size=2></td>
  </tr>
</table>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">130</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><a name="p131"></a>Report of Independent Registered Public Accounting Firm to the Members of Vodafone Group Plc</font></b>
</p>
<div style="float: left; width: 48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have audited
  the Consolidated Financial Statements of Vodafone Group Plc, which comprise
  the consolidated consolidated balance sheets at 31 March 2006 and 2005, the
  consolidated income statements, consolidated cash flow statements, the consolidated
  statements of recognised income and expenses for each of the two years in the
  period ended 31 March 2006 and the related notes numbered 1 to 40. These Consolidated
  Financial
Statements have been prepared under the accounting policies set out therein.
  We have also audited the information in the directors&#146; remuneration report
  that is described as having been audited.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We have reported separately on the individual Company Financial Statements of
Vodafone Group Plc for the year ended 31 March 2006.
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Respective responsibilities of directors and auditors</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
directors&#146; responsibilities for preparing the annual report, the directors&#146; remuneration report and the Consolidated Financial Statements in accordance with applicable
law and International Financial Reporting Standards (IFRS) as adopted for use in the European Union are set out in the statement of directors&#146; responsibilities.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Our responsibility is to audit the Consolidated Financial Statements and the
part of the directors&#146; remuneration report described as having been audited
in accordance with relevant United Kingdom legal and regulatory requirements
and International Standards on Auditing (UK
and Ireland).
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We report to you our opinion as to whether the Consolidated Financial Statements
give a true and fair view in accordance with the relevant financial reporting
framework and whether the Consolidated Financial Statements and the part of the
directors&#146; remuneration report described as having been audited have been
properly prepared in accordance with the Companies Act 1985 and Article 4 of
the IAS Regulation.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We report to you if
in our opinion the information given in the directors&#146; report is not consistent
with the Consolidated Financial Statements. We also report to you if we have
not received all the information and explanations we require for our audit, or
if information specified by law regarding directors&#146; transactions with the
Company and other members of the Group is not disclosed.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We also report to you if, in our opinion, the Company has not complied with any
of the four directors&#146; remuneration disclosure requirements specified for
our review by the Listing Rules of the Financial Services Authority. These comprise
the amount of each element in the remuneration package and information on share
options, details of long term incentive schemes, and money purchase and defined
benefit schemes. We give a statement, to the extent possible, of details of any
non-compliance.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We review whether
the corporate governance statement reflects the Company&#146;s compliance with
the nine provisions of the 2003 FRC Combined Code specified for our review by
the Listing Rules of the Financial Services Authority, and we report if it does
not. We are not required to consider whether the board&#146;s statement on internal
control covers all risks and controls, or form an opinion on the effectiveness
of the
Group&#146;s corporate governance procedures or its risk and control procedures.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We read the directors&#146; report and the other information contained in the
annual report for the above year as described in the contents section including
the unaudited part of the
directors&#146; remuneration report and we consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies
with the Consolidated Financial Statements.
</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of audit opinion</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We conducted
  our audit in accordance with International Standards on Auditing (UK and Ireland)
  issued by the Auditing Practices Board and with the standards of the Public
  Company Accounting Oversight Board (United States). The Company is not required
  to have, nor were we engaged to perform, an audit of its internal control over
  financial reporting. Our audit included consideration of internal control over
  financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances
  but not for the purpose of expressing an opinion on the effectiveness of the
  Company&#146;s internal control over financial reporting. Accordingly, we express no
such opinion. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Consolidated Financial Statements and the part of the directors&#146; remuneration report described as having been audited. It
also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the Consolidated Financial Statements, and of whether the accounting policies are appropriate to the Group&#146;s
circumstances,
consistently applied and adequately disclosed.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence
to give reasonable assurance that the Consolidated Financial Statements and the
part of the directors&#146; remuneration report described as having been audited
are free
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
from material misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of the presentation
of information in
the Consolidated Financial Statements and the part of the directors&#146; remuneration
report described as having been audited.
</font></p>
<p>
  <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Opinions </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  IFRS opinion</font><font size="3">
  <br>
  </font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">I<font size="2">n our opinion:</font></font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
       Consolidated Financial Statements give a true and fair view, in accordance
       with IFRS as adopted for use in the European Union, of the state of the
       Group&#146;s
affairs as at31</font><font size="2">&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2006 and of its loss for the year then ended;</font></font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
       Consolidated Financial Statements and the part of the directors&#146; remuneration
       report described as having been audited have been properly prepared in
       accordance with the Companies Act 1985 and Article 4 of the IAS Regulation;
    and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
       information given in the directors&#146; report is consistent with the
    Consolidated Financial Statements.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
As explained in note 1 of the Consolidated Financial Statements, the Group, in
addition to complying with its legal obligation to comply with IFRS as adopted
for use in the European Union, has also complied with the IFRS as issued by the
International Accounting Standards Board. Accordingly, in our opinion the financial
statements give a true and fair view, in accordance with IFRS, of the state of
the Group&#146;s
affairs as
at </font><font size="2"><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31</font>&nbsp;<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2006 and of its loss for the year then ended.</font>
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US opinion<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In our opinion the Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the Group at 31 March 2006 and 2005 and the
consolidated results of its operations and cash flows for each of the two years in the period ended 31 March 2006 in conformity with IFRS as adopted for use in the European Union and as issued by the International Accounting Standards Board.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
IFRS vary in significant respects from the accounting principles generally accepted
in the United States of America. Information relating to the nature and effect
of such differences
is presented in note 38 to the Consolidated Financial Statements.
</font></p>
<p>
<img src="b826353-20fx133x1.jpg" border=0>
</p>
<p>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Deloitte &amp; Touche LLP<br>
</font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Chartered
Accountants and Registered Auditors<br>
London <br>
United Kingdom</b>
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
30 May 2006</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">131</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p132"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Company Financial Statements of Vodafone Group Plc at 31 March</font></b>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(restated)</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note</font></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
   <td align="right" valign="bottom"><font size="1">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Fixed assets</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other investments</font></td>
   <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
   <td width="2%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">133</font></b></td>
   <td width="2%" align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td width="2%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares in group undertakings</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">67,395</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94,446</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">67,528</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94,446</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Current assets</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Debtors: amounts falling due after more than one year</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">236</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">370</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Debtors: amounts falling due within one year</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99,417</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77,466</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99,653</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77,864</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Creditors: amounts falling due within one year</font></b></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(76,591</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(89,740</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Net current assets/( liabilities)</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">23,062</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(11,876</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Total assets less current liabilities</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">90,590</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">82,570</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Creditors: amounts falling due after more than one year</font></b></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(13,487</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(9,380</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1> </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">77,103</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73,190</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2>
   </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capital and reserves</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Called up share capital</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,165</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share premium account</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,444</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,284</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital redemption reserve</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital reserve</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">88</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">88</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other reserves</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,012</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,048</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares held</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,186</font></b></td>
   <td align="left" valign="bottom" bgcolor="#cccccc"><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>)</b></font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,085</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit and loss account</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">27,452</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20,569</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Equity shareholders&#146; funds</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">77,103</font></b></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">73,190</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2>
   </td>
   <td align="right" valign="bottom"><hr noshade size=2>
   </td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" valign="bottom" bgcolor="#cccccc"><hr noshade size=2></td>
   <td align="right" valign="bottom"><hr noshade size=2></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
</tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Financial Statements were approved by the Board of directors on 30 May 2006 and were signed on its behalf by:</font>
</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%"><img src="b826353-20fx134x1.jpg" border=0></td>
    <td width="90%"><img src="b826353-20fx134x2.jpg" border=0></td>
  </tr>
  <tr>
    <td><font color="#f02015" size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Arun
    Sarin </b></font></td>
    <td><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Andy
    Halford</font></b> </td>
  </tr>
  <tr>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chief
    Executive</font></b> </td>
    <td><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Chief
    Financial Officer</font></b> </td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The accompanying notes are an integral part of these Financial Statements.</font>
</p>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">132</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p133"></a>
<a name="p133a"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes to the Company Financial Statements</font></b>
</p>
<div style="float: left; width: 48%">
<p>
  <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.</font><font size="3">&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of preparation</font><br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  separate financial statements of the Company are drawn up in accordance with
  the Companies
  Act 1985 and UK generally accepted accounting principles (&#147;UK GAAP&#148;).</font><font size="2">
  </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual results could
differ from those estimates. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both
current and future periods.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
As permitted by Section 230 of the Companies Act 1985, the profit and loss account
of the Company is not presented in this Annual Report.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Company has taken
advantage of the exemption contained in FRS 1 &#147;Cash flow statements&#148; and
has not produced a cash flow statement.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Company has taken
advantage of the exemption contained in FRS 8 &#147;Related party disclosures&#148; and
has not reported transactions with fellow Group undertakings.
</font></p>
<p>
  <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p133b"></a>2.</font><font size="3">&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Significant accounting policies</font><br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Company&#146;s significant accounting policies are described below.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accounting convention</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company Financial Statements are prepared under the historical cost convention and in accordance with applicable accounting standards of the UK Accounting Standards Board and
pronouncements of the Urgent Issues Task Force.</font></p>
<p>
<font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New accounting standards</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company has adjusted its accounting policies to adopt the following new standards:
  FRS 17 &#147;Retirement Benefits&#148;, FRS 20 &#147;Share-based Payments&#148;, FRS 21
&#147;Events after the Balance Sheet Date&#148;, FRS 22 &#147;Earnings per share&#148;, FRS 23 &#147;The Effects of Changes in Foreign Exchange Rates&#148;, FRS 26 &#147;Financial Instruments: Measurement&#148; and FRS 28 &#147;Corresponding
Amounts&#148;. The Company has also early adopted FRS 29 &#147;Financial Instruments: Disclosures&#148;, which replaces the disclosure requirements of FRS 25 &#147;Financial Instruments: Disclosure and Presentation&#148;. Comparative figures have
been restated accordingly for changes in accounting policy. Details of the effect of the prior year adjustment are set out below and the full impact on the Company&#146;s
net asset position as at 1 April 2005 is analysed in note 8.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 17 impacts the Company in its role as sponsoring employer of the Vodafone
Group Pension Scheme, a defined benefit pension scheme. The adoption of FRS 17
had no effect on the
Company&#146;s profit or net assets as the Company was unable to identify its
share of the underlying assets and liabilities of the Vodafone Group Pension
Scheme on a consistent and reasonable basis. Therefore the Company has applied
the guidance within FRS 17 to account for defined benefit schemes as if they
were defined contribution schemes and recognise only the contribution payable
each year. The Company had no contributions payable for the years ended 31 March
2006 and 31 March 2005 as
it has no employees.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 20 requires that the fair value of options and shares awarded to employees
is charged to the profit and loss account over the vesting period. The Company
does not incur a charge under this standard. However, where the Company has granted
rights over the Company&#146;s shares or share options to the employees of its
subsidiary undertakings, an additional capital contribution has been deemed to
have been made by the Company to its subsidiary undertakings. This results in
an additional investment in subsidiaries and a corresponding increase in shareholders
equity. The additional capital contribution is based on the fair value of the
grant issued allocated over the
underlying grant&#146;s vesting period. As a result of adopting FRS 20, the Company&#146;s
net assets at 31 March 2005 increased by &pound;419
million.
</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 21 requires that dividends declared after the balance sheet date should not
be recognised as a liability at the balance sheet date as the liability does
not represent a present obligation. Under FRS 21, interim dividends are recognised
when they are paid, and final dividends are recognised when they are approved
by shareholders. As
a result of adopting FRS 21, the Company&#146;s net assets at 31 March 2005 increased
by &pound;1,395 million.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 23 sets out additional guidance on the translation method for transactions
in foreign currencies and on determining the functional and presentational currencies.
The adoption of
FRS 23 had no impact on the Company&#146;s profit or net assets.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Company has adopted the presentation requirements of FRS 25. This deals with
the classification of capital instruments issued between debt and equity and
the implications of that
classification for dividends and interest expense.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 26 sets out the requirements for measurement, recognition and de-recognition
of financial instruments. The main impact of this change in accounting policy
is to recognise the fair value of foreign exchange contracts and interest rate
swaps on the balance sheet with effect from the transitional date of 1 April
2004. The adoption of FRS 26
increased the Company&#146;s net assets at 31 March 2005 by &pound;182 million.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 28 gives the requirements for the disclosure of corresponding amounts for
items shown in an entity&#146;s primary financial statements and the notes to
the financial statements.
The adoption of FRS 28 had no effect upon the Company&#146;s profit or net assets.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
FRS 29 sets out the requirements for the disclosures relating to financial instruments.
The Company has early adopted FRS 29 and applied its requirements from 1 April
2005. The Company is exempt from the requirements of the standard as full FRS
29 disclosures are available in the Vodafone Group Plc Annual Report 2006.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investments</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares in Group undertakings are stated at cost less any provision for permanent diminution in value.</font><font size="2">
  </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Company assesses investments for impairment whenever events or changes in
circumstances indicate that the carrying value of an investment may not be recoverable.
If any such indication of impairment exists, the Company makes an estimate of
the recoverable amount. If the recoverable amount of the cash-generating unit
is less than the value of the investment, the investment is considered to be
impaired and is written down to its recoverable amount. An impairment loss is
recognised immediately in the profit and loss account.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
For available-for-sale investments, gains and losses arising from changes in
fair value are recognised directly in equity, until the security is disposed
of or is determined to be impaired, at which time the cumulative gain or loss
previously recognised in equity, determined using the weighted average costs
method, is included in the net profit or loss for the period.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Foreign currencies<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
preparing the financial statements of the Company, transactions in currencies
other than
  the Company&#146;s functional currency are recorded at the rates of exchange
  prevailing on the dates of the transactions. At each balance sheet date, monetary
  items denominated in foreign currencies are retranslated at the rates prevailing
  on the balance sheet date. Non-monetary items carried at fair value that are
  denominated in foreign
currencies are retranslated at the rate prevailing on the date when fair value
  was determined. Non-monetary items that are measured in terms of historical
  cost in a foreign currency are not retranslated.</font><font size="2">
  </font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in the profit and loss account
for the period. Exchange differences arising on the retranslation of non-monetary
items carried at fair value are included in the profit and loss account for the
period except for differences arising on the retranslation of non-monetary items
in respect of which gains and losses are recognised directly in equity. For such
non-monetary items, any exchange component of that gain or loss is also recognised
directly in equity.
</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">133</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p134"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>


<p> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Company Financial Statements</font><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<div style="float: left; width: 48%">
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.&nbsp;&nbsp;&nbsp;Significant
    accounting policies </font><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font><font color="#f02015" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  </font><font size="3"
face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Borrowing costs<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">All
  borrowing costs are recognised in the profit and loss account in the period
  in which they are incurred.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation</font>
  <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Current tax,
  including UK corporation tax and foreign tax, is provided at amounts expected
  to be paid (or recovered) using the tax rates and laws that have been enacted
  or substantively enacted by the balance sheet date.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
  tax is provided in full on timing differences that exist at the balance sheet
  date and that result in an obligation to pay more tax, or a right to pay less
  tax in the future. The deferred tax is measured at the rate expected to apply
  in the periods in which the timing differences are expected to reverse, based
  on the tax rates and laws that are enacted or substantively enacted at the balance
  sheet date. Timing differences arise from the inclusion of items of income and
  expenditure in taxation computations in periods different from those in which
  they are included in the financial statements. Deferred tax is not provided
  on timing differences arising from the revaluation of fixed assets where there
  is no binding commitment to sell the asset. Deferred tax assets are recognised
  to the extent that it is regarded as more likely than not that they will be
  recovered. Deferred tax assets and liabilities are not discounted.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  instruments</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  assets and financial liabilities, in respect of financial instruments, are recognised
  on the balance sheet when the Company becomes a party to the contractual provisions
  of the instrument.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  liabilities and equity instruments</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
  liabilities and equity instruments issued by the Company are classified according
  to the substance of the contractual arrangements entered into and the definitions
  of a financial liability and an equity instrument. An equity instrument is any
  contract that evidences a residual interest in the assets of the Company after
  deducting all of its liabilities. The accounting policies adopted for specific
  financial liabilities and equity instruments are set out below.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Capital
  market and bank borrowings</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interest-bearing
  loans and overdrafts are initially measured at fair value, and are subsequently
  measured at amortised cost, using the effective interest rate method, except
  where they are identified as a hedged item in a fair value hedge. Any difference
  between the proceeds net of transaction costs and the settlement or redemption
  of borrowings is recognised over the term of the borrowing.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Equity
  instruments</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Equity instruments
  issued by the Company are recorded at the proceeds received, net of direct issue
  costs.</font> </p>
</div>
<div style="float: right; width: 48%">
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Derivative
  financial instruments and hedge accounting</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  activities expose it to the financial risks of changes in foreign exchange rates
  and interest rates.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The use
  of financial derivatives is governed by the Group&#146;s policies approved by
  the board of directors, which provide written principles on the use of financial
  derivatives consistent with the Group&#146;s risk management strategy. The Company
  does not use derivative financial instruments for speculative purposes.</font>
</p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Derivative
  financial instruments are initially measured at fair value on the contract date,
  and are subsequently re-measured to fair value at each reporting date. The Company
  designates certain derivatives as hedges of the change of fair value of recognised
  assets and liabilities (&#147;fair value hedges&#148;). Hedge accounting is
  discontinued when the hedging instrument expires or is sold, terminated, or
  exercised, or no longer qualifies for hedge accounting.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fair value
  hedges</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  policy is to use derivative instruments (primarily interest rate swaps) to convert
  a proportion of its fixed rate debt to floating rates in order to hedge the
  interest rate risk arising, principally, from capital market borrowings. The
  Company designates these as fair value hedges of interest rate risk with changes
  in fair value of the hedging instrument recognised in the profit and loss account
  for the period together with the changes in the fair value of the hedged item
  due to the hedged risk, to the extent the hedge is effective. The ineffective
  portion is recognised immediately in the profit and loss account.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share
  based payments</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Group
  operates a number of equity settled share based compensation plans for the employees
  of subsidiary undertakings, using the Company&#146;s equity instruments. The
  fair value of the compensation given in respect of these share based compensation
  plans is recognised as a capital contribution to the Company&#146;s subsidiary
  undertakings, over the vesting period. The capital contribution is reduced by
  any payments received from subsidiary undertakings in respect of these share
  based payments.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
  paid and received</font> <br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
  paid and received are included in the financial statements in the period in
  which the related dividends are actually paid or received or, in respect of
  the Company&#146;s final dividend for the year, approved by shareholders.</font>
</p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">134</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p135"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.&nbsp;&nbsp;&nbsp;Fixed
  assets<br>
  </font><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
  investments</font><font face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Company&#146;s fixed asset investments comprises &pound;133 million (2005: &pound;nil)
  representing 30,252,460 ordinary shares in VenFin Limited (2005: &pound;nil).
  The investment is held at fair value.</font> </p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shares in group
  undertakings</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cost:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="88%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1
      April 2005</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">98,789</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Adjustment
      for adoption of FRS 20</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">419</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2005, as restated</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99,208</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additions</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,642</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital
      contributions arising from share based payments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">114</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contributions
      received in relation to share based payments</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(150</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disposals</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(30,654</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">72,160</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      provided for:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April
      2005</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,762</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      provided for during the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,765</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Net
      book value:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2006</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">67,395</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March
      2005, as restated</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">94,446</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March
  2006, the Company had the following principal subsidiary undertakings:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Country
      of</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">incorporation</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Percentage</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Name</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Principal
      activity</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">or registration</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholding</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
      International Operations Limited</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holding
      company</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">England</font></td>
    <td width="2%" align="right">&nbsp;</td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p135a"></a>4.&nbsp;&nbsp;&nbsp;Debtors</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(restated)</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td></tr>
  <tr>
    <td width="76%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      falling due within one year:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      owed by subsidiary undertakings</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99,174</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77,246</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation
      recoverable</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">72</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">37</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      relief receivable</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      debtors</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">171</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">99,417</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">77,466</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      falling due after more than one year:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Deferred
      taxation</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      debtors</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">231</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">365</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">236</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">370</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p135b"></a>5.&nbsp;&nbsp;&nbsp;Investments</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Liquid
      Investments</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28</font></td>
    <td width="2%">&nbsp;</td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s liquid investments at 31 March 2005 comprised of short term foreign exchange forward contracts.</font>
</p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
      Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">135</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p136"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Company Financial Statements<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font>
</p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6.&nbsp;&nbsp;&nbsp;Creditors</font> </p>


<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(restated)</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      falling due within one year:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
      loans and other loans</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,143</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      owed to subsidiary undertakings</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">74,229</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89,652</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Group
      relief payable</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">89</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      creditors</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">120</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">34</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Accruals
      and deferred income</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">76,591</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">89,740</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Amounts
      falling due after more than one year:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Bank
      loans</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      loans</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,321</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,316</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      creditors</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">166</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">48</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13,487</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9,380</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td> <hr noshade size=2></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Included
  in amounts falling due after more than one year are other loans of &pound;5,942
  million, which are due in more than five years from 1 April 2006 and are payable
  otherwise than by instalments. Interest payable on this debt ranges from 3.625%
  and 7.875%.</font> </p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p136a"></a>7.&nbsp;&nbsp;&nbsp;Share
  capital</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"> <hr noshade size=1></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td colspan="3" align="right"> <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Number</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Authorised:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="46%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary
      shares of US$0.10 each</font></td>
    <td width="15%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">78,000,000,000</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,875</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">78,000,000,000</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,875</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary
      shares allotted, issued and fully paid:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">68,380,866,539</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,286</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,263,933,048</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,280</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allotted
      during the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">120,466,245</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116,933,491</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancelled
      during the year</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,250,000,000</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(128</font></b></td>
    <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"> <hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">66,251,332,784</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,165</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">68,380,866,539</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td bgcolor="#cccccc"> <hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Notes:</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006 the Company held 6,120,129,348 (2005: 3,785,000,000) treasury shares with a nominal value of &pound;352 million (2005: &pound;205
million).</font></td>
</tr>
<tr>
   <td valign="top" width="3%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(2)</font></td>
   <td valign="top"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At 31 March 2006, 50,000 (2005: 50,000) 7% cumulative fixed rate shares of &pound;1 each were authorised, allotted, issued and fully paid by the
Company.</font></td>
</tr>
</table>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Allotted during
  the year</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Nominal</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">value</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proceeds</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td>
      <hr noshade size=1></td>
    <td bgcolor="#cccccc">
      <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">
    <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc">
    <hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td></tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">UK share
      awards and option scheme awards</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">85,744,935</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="8%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">122</font></b></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">US share
      awards and option scheme awards</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">34,721,310</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">37</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc">
<hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"> <hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total
      for share option schemes and restricted stock awards</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">120,466,245</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">159</font></b></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc">
<hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancelled
  during the year<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">During
  the year 2,250,000,000 (2005: nil) treasury shares were cancelled in order to
  comply with Companies Act requirements in relation to the amount of issued share
  capital that can be held in treasury.</font> </p>
<p> <font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share-based
  payments<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
  Company currently uses a number of equity settled share plans to grant options
  and shares to the directors and employees of its subsidiary undertakings, as
  listed below.</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
  option schemes</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone Group
  savings related and sharesave schemes<br>
  Vodafone Group executive schemes<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Vodafone
  Group 1999 Long Term Stock Incentive Plan and ADSs<br>
  Other share option plans</font> </p>
<p> <font size="2"><b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Share
  plans</font></b> </font><br>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share Incentive
  plan<br>
  Restricted share plans</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As at 31
  March 2006, the Company had 786.9 million ordinary share options outstanding
  (2005: 1,122.6 million) and 7.7 million ADS options outstanding (2005: 11.2
  million).</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company
  has made a capital contribution to its subsidiary undertakings in relation to
  share based payments. At 1 April 2005, the capital contribution net of payments
  received from subsidiary undertakings was &pound;419 million. During the year
  ended 31 March 2006, the capital contribution arising from share based payments
  was &pound;114 million, with payments of &pound;150 million received from subsidiary
  undertakings. The Company does not incur a profit and loss account charge in
  relation to share based payments.</font> </p>
<p> <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Full details
  of share based payments, share option schemes and share plans are disclosed
  in note 20 to the Consolidated Financial Statements.</font> </p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">136</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p137"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p><font size="3">
<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8.</font>&nbsp;&nbsp;&nbsp;<font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Reserves
and reconciliation of movements in equity shareholders&#146; funds</font>
</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Total equity</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">premium</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">redemption</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">and loss</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shareholders&#146;</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Share capital</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">account</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserve</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">reserves</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">held</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">account</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">funds</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr align="right">
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="1">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005 as previously reported</font></td>
   <td width="7%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4,286</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">52,284</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">88</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">629</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(5,085</font></td>
    <td width="2%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">)</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18,992</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
    <td width="6%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71,194</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prior year adjustment &#150; implementation of FRS 20</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">419</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">419</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prior year adjustment &#150; implementation of FRS 21</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,395</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,395</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Prior year adjustment &#150; implementation of FRS 26</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">182</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">182</font></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 April 2005</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,286</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,284</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">88</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,048</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(5,085</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">20,569</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">73,190</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Issue of new shares</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">152</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">159</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Purchase of own shares</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,500</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(6,500</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Own shares released on vesting of share awards</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">346</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">354</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cancellation of own shares held</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(128</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3,053</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(3,053</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Profit for the financial year</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,671</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12,671</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,753</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(2,753</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Capital contribution given relating to share based payments</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">114</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">114</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contribution received relating to share based payments</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(150</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(150</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other movements</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&#150;</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><hr noshade size=1></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">31 March 2006</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4,165</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">52,444</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">128</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">88</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,012</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">(8,186</font></b></td>
   <td bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">)</font></b></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">27,452</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
   <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">77,103</font></b></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><hr noshade size=2></td>
   <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In accordance
  with the exemption allowed by section 230 in the Companies Act 1985, no profit
  and loss account has been presented by the Company. The profit for the financial
  year
dealt with in the accounts of the Company is &pound;12,671 million (2005 restated: &pound;10,583
million). Under English law, the amount available for distribution to shareholders
is based upon the profit and loss reserve of the Company and is reduced by the
amount of own shares held and is limited by statutory or other restrictions.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The auditor remuneration
for audit services to the Company was &pound;0.6 million (2005: &pound;0.5 million).
The Company paid no audit fees in relation to non audit services to the Company
for the years ended 31 March 2006 and 31 March 2005.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The directors are remunerated by Vodafone Group Plc for their services to the
Group as a whole. No remuneration was paid to them specifically in respect of
their services to
Vodafone
Group Plc for either year. Full details of the directors&#146; remuneration are
disclosed in the Directors&#146; Remuneration Report in the Vodafone Group Plc
Annual Report 2006.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
There were no employees other than directors of the Company throughout the current
or the preceding year.
</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p137a"></a>9.&nbsp;&nbsp;&nbsp;Equity
    dividends</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="right">
    <td><font size="1">&nbsp;</font></td>
    <td><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Declared
      and paid during the financial year:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final
      dividend for the year ended 31 March 2005: 2.16 pence per share</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;(2004:
      1.078 pence per share)</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,386</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">728</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interim
      dividend for the year ended 31 March 2006: 2.20 pence per share</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;(2005:
      1.91 pence per share)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,367</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,263</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,753</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,991</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td><hr noshade size=1></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Proposed
      or declared after the balance sheet date and not recognised as a liability:</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Final
      dividend for the year ended 31 March 2006: 3.87 pence per share</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;(2005:
      2.16 pence per share)</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2,327</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,386</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">137</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p138"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>



<p><font size="3"> <b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Notes
  to the Company Financial Statements<br>
  </font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10.&nbsp;&nbsp;&nbsp;Contingent
  liabilities</font></p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
  <tr>
    <td colspan=2><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2006</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><font size="1">&nbsp;</font></td>
    <td align="right"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">&pound;m</font></b></td>
    <td><font size="1">&nbsp;</font></td>
    <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&pound;m</font></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><hr noshade size=1></td>
    <td align="right" bgcolor="#cccccc"><hr noshade size=1></td>
    <td bgcolor="#cccccc"><hr noshade size=1></td>
    <td align="right"><hr noshade size=1></td>
    <td><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance
      bonds</font></td>
    <td width="10%" align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">172</font></b></td>
    <td width="2%" bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">176</font></td>
    <td width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit
      guarantees &#150; third party indebtedness</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1,570</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,424</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other
      guarantees and contingent liabilities</font></td>
    <td align="right" bgcolor="#cccccc"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
    <td bgcolor="#cccccc"><font size="2">&nbsp;</font></td>
    <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=2><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td bgcolor="#cccccc"><hr noshade size=2></td>
    <td><hr noshade size=2></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance bonds<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Performance bonds require the Company to make payments to third parties in the event that the Company or its subsidiary undertakings do not perform what is expected of it under the
terms of any related contracts.</font>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company performance bonds include &pound;152 million (2005: &pound;149 million) in respect of undertakings to roll out third generation networks in Spain.</font>
</p>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit guarantees &#150; third party indebtedness<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Credit guarantees comprise guarantees and indemnities of bank or other facilities.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
At 31 March 2006, the Company had guaranteed debt of Vodafone Finance K.K. amounting
to &pound;1,268 million (2005: &pound;1,111 million) and issued guarantees in
respect of notes
issued by Vodafone Americas, Inc. amounting to &pound;302 million (2005: &pound;311
million). The Japanese facility expires by March 2011 and the majority of Vodafone
Americas, Inc. bond guarantees by July 2008.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other guarantees and contingent liabilities<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Other guarantees principally comprise commitments to support disposed entities.</font>
</p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legal proceedings<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Details regarding certain legal actions which involve the Company are set out in note 31 to the Consolidated Financial Statements.</font>
</p>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">138</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p139"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financials</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>


<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Independent Auditor&#146;s Report to the Members of Vodafone Group Plc</font></b>
</p>
<div style="float: left; width: 48%">
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We have audited the individual Company Financial Statements of Vodafone Group Plc for the year ended 31 March 2006 which comprise the balance sheet and the related notes 1 to 10.
These individual Company Financial Statements have been prepared under the accounting policies set out therein.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The corporate governance
statement and the directors&#146; remuneration report are included in the Group
annual report of Vodafone Group Plc for the year ended 31 March 2006. We have
reported separately on the Consolidated Financial Statements of Vodafone Group
Plc for the year ended 31 March 2006 and on the information in the directors&#146; remuneration
report that is described as having been audited.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Respective responsibilities of directors and auditors<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The directors&#146; responsibilities
for preparing the annual report and the individual</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Company
Financial Statements in accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice) are set out
in the
statement of directors&#146; responsibilities.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Our responsibility
    is to audit the individual Company Financial Statements in accordance with
    relevant United Kingdom legal and regulatory requirements and International
  Standards on Auditing (UK and Ireland).</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We report
    to you our opinion as to whether the individual Company Financial </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Statements
    give a true and fair view in accordance with the relevant financial reporting
    framework and whether the individual Company Financial Statements have been
    properly prepared in accordance with the Companies Act 1985. We report to
    you if in our opinion
the information given in the directors&#146; report is not consistent with the
individual Company Financial Statements. We also report to you if, in our opinion,
the Company has not kept proper accounting records, if we have not received all
the information and explanations we require for our audit, or if information
specified by law regarding directors&#146; remuneration and other transactions
is not
disclosed.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We read the directors&#146; report and the other information contained in the
annual report for the above year as described in the contents section and consider
the implications for our report if we become aware of any apparent misstatements
or material inconsistencies
with the individual Company Financial Statements.</font></p>
</div>
<div style="float: right; width: 48%">
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Basis of audit opinion<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">We conducted
  our audit in accordance with International Standards on Auditing (UK and Ireland)
  issued by the Auditing Practices Board. An audit includes examination, on a
  test basis, of evidence relevant to the amounts and disclosures in the individual
  Company Financial Statements. It also includes an assessment of the significant
  estimates and judgements made by the directors in the preparation of the individual
  Company
Financial Statements, and of whether the accounting policies are appropriate
  to the Company&#146;s circumstances, consistently applied and adequately disclosed.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
We planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence
to give reasonable assurance that the individual Company Financial Statements
are free from material misstatement, whether caused by fraud or other irregularity
or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of
information in the individual Company Financial Statements.</font></p>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Opinion<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In our opinion:</font></p>
  <table width="100%" border=0 cellpadding=0 cellspacing=0>
    <tr>
      <td width="3%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
        individual Company Financial Statements give a true and fair view, in
        accordance with United Kingdom Generally Accepted Accounting Practice,
        of the state of the Company's affairs as at 31 March 2006;</font></td>
    </tr>
    <tr>
      <td valign="top">&nbsp;</td>
      <td valign="top">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
        individual Company Financial Statements have been properly prepared in
        accordance with the Companies Act 1985; and</font></td>
    </tr>
    <tr>
      <td valign="top">&nbsp;</td>
      <td valign="top">&nbsp;</td>
    </tr>
    <tr>
      <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>
      <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
        information given in the directors&#146; report is consistent with the
        Company Financial Statements.</font></td>
    </tr>
  </table>
<p>
<img src="b826353-20fx141x1.jpg" border=0>
</p>
<p><b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Deloitte &amp; Touche
LLP<br>
</font></b><font size="2" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><b>Chartered
Accountants and Registered Auditors<br>
London<br>
United Kingdom</b>
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
30 May 2006</font></p>
</div><br clear="all">

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">139</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="contents5"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p>&nbsp;</p>
<div style="float: left; width: 48%">


<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td>&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Contents</font></td>
   <td align="right">&nbsp;</td>
   <td>&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td>&nbsp;</td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Page</font></td>
   <td align="right">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td width="2%">&nbsp;</td>
   <td><a href="#p140"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information</font></a></td>
   <td width="5%" align="right"><a href="#p140"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td width="2%" align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p140a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Financial
    calendar for the 2007 financial year</font></a></td>
   <td align="right"><a href="#p140a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p140b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Dividends</font></a></td>
   <td align="right"><a href="#p140b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p140c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Telephone
    share dealing</font></a></td>
   <td align="right"><a href="#p140c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p140d"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Postal
    share dealing</font></a></td>
   <td align="right"><a href="#p140d"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p140e"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Registrars
    and transfer office</font></a></td>
   <td align="right"><a href="#p140e"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Online
    shareholder services</font></a></td>
   <td align="right"><a href="#p141"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Annual
    General Meeting</font></a></td>
   <td align="right"><a href="#p141a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Corporate
    sponsored nominee service for shareholders</font></a></td>
   <td align="right"><a href="#p141b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; ShareGift</font></a></td>
   <td align="right"><a href="#p141c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141d"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; The
    Unclaimed Assets Register</font></a></td>
   <td align="right"><a href="#p141d"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p141e"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Share
    price history</font></a></td>
   <td align="right"><a href="#p141e"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p142"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Markets</font></a></td>
   <td align="right"><a href="#p142"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p142a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Memorandum
    and Articles of Association and Applicable English Law</font></a></td>
   <td align="right"><a href="#p142a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p144"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Documents
    on display</font></a></td>
   <td align="right"><a href="#p144"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p144a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Material
    contracts</font></a></td>
   <td align="right"><a href="#p144a"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p144b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Exchange
    controls</font></a></td>
   <td align="right"><a href="#p144b"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p144c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150; Taxation</font></a></td>
   <td align="right"><a href="#p144c"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
   <td><a href="#p146"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Form 20-F cross reference guide</font></a></td>
   <td align="right"><a href="#p146"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146</font></a></td>
   <td align="center">&nbsp;</td>
  </tr>
<tr bgcolor="#ccffff">
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align="right">&nbsp;</td>
  <td align="center">&nbsp;</td>
  </tr>
</table>
<br>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan="2"> <b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif"><a name="p140"></a>Investor
        information<br>
  </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p140a"></a>Financial
  calendar for the 2007 financial year</font> </td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Annual General Meeting (see below)</font></td>

   <td width="25%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25 July 2006</font></td>

   <td width="2%" align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Interim Results announcement</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14 November 2006</font></td>

   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Preliminary announcement of full year results</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23 May 2007</font></td>

   <td align="right">&nbsp;</td>
</tr>
<tr>
  <td><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="right">&nbsp;</td>
</tr>
</table>
<br>
<br>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
  <td colspan="2"><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p140b"></a>Dividends<br>
  </font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Full
  details on the dividend amount per share or ADS can be found on page 38. Set
  out below is information relevant to the final dividend for the year ended
  31 March 2006.</font></td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
  <td><hr noshade size=1>
  </td>
  <td align="right"><hr noshade size=1>
  </td>
  <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ex-dividend date</font></td>

   <td width="25%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7 June 2006</font></td>

   <td width="2%" align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Record date</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9 June 2006</font></td>

   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividend reinvestment plan election date</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14 July 2006</font></td>

   <td align="right">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividend payment date</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4 August 2006</font><font size="2">&nbsp;</font></td>

   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>

</tr>
<tr>
  <td><hr noshade size=1></td>
  <td align="right"><hr noshade size=1></td>
  <td align="left">&nbsp;</td>
</tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1)</font></td>

    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Payment date for both ordinary shares and ADSs.</font></td>

  </tr>
</table>
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividend payment methods</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holders of ordinary shares can:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="3%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">have cash dividends paid direct to a bank or building society account; or</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">have cash dividends paid in the form of a cheque; or</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">elect to use the cash dividends to purchase more Vodafone shares under the Dividend Reinvestment Plan (see below).</font></td>

</tr>
</table>
<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">If a holder
  of ordinary shares does decide to receive cash dividends, it is recommended
  that these are paid directly to the shareholder&#146;s bank or building society account via
BACS or EFTS. This avoids the risk of cheques being lost in the post and means the dividend will be in the shareholder&#146;s
account on the dividend payment date. The shareholder will be sent a tax voucher
confirming the amount of dividend and the
account into which it has been paid.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Please contact the
Company&#146;s Registrars for further details.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Holders of ADSs can:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">have cash dividends paid direct to a bank account; or</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">have cash dividends paid by cheque; or</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">elect to have the dividends reinvested to purchase additional Vodafone ADSs (see below for contact details).</font></td>

</tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividend reinvestment<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company offers a Dividend Reinvestment Plan which allows holders of ordinary shares who choose to participate to use their cash dividends to acquire additional shares in the
Company. These are purchased on their behalf by the Plan Administrator through a low cost dealing arrangement. Further details can be obtained from the Plan Administrator on +44 (0) 870 702 0198.</font></p>
</div>
<div style="float: right; width: 48%">

<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
For ADS holders, The Bank of New York maintains a Global BuyDIRECT Plan for the
Company, which is a direct purchase and sale plan for depositary receipts, with
a dividend reinvestment facility. For additional information, please call toll-free
from within the US on +1 800 233 5601, or write to:</font></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        Bank of New York<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholder
Relations Department<br>
Global BuyDIRECT<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">P.O.
Box 1958<br>
Newark<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">New
Jersey 07101-1958<br>
USA</font></td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">For calls
    from outside
the US, call +1 212 815 3700.<br>
Please note that this number is not toll-free.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p140c"></a>Telephone share dealing<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A telephone
  share dealing service with the Company&#146;s Registrars is available for holders
  of ordinary shares. The service is available from 8.00 am to 4.30 pm, Monday
  to Friday,
excluding bank holidays, on telephone number +44 (0) 870 703 0084.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Detailed terms and conditions are available on request by calling the above number.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p140d"></a>Postal share dealing<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A postal share dealing service is available for holders of ordinary shares with 1,000 shares or fewer who want to either increase their holding or sell their entire holding.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Further information
about this service can be obtained from the Company&#146;s Registrars on +44
(0) 870 702 0198.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p140e"></a>Registrars and transfer office<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s
  ordinary share register is maintained by:</font></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Computershare
        Investor
Services PLC<br>
P.O. Box 82<br>
The Pavilions, Bridgwater Road<br>
Bristol BS99 7NH<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">England</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Telephone:
        +44 (0)
870 702 0198 Fax: + 44 (0) 870 703 6101<br>
Email: web.queries@computershare.co.uk</font></td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holders
  of ordinary shares resident in Ireland should contact:</font></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Computershare
        Investor
Services (Ireland) Limited<br>
P.O. Box 9742<br>
Dublin 18<br>
Ireland</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> Telephone:
        +353 (0)
818 300 999 or Fax: +353 (0) 1 216 3151<br>
Email: web.queries@computershare.ie</font></td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Any queries
    about the administration of holdings of ordinary shares, such as change of
    address, change of ownership or dividend payments, should be directed to
    the Company&#146;s Registrars at the relevant address or telephone number
    immediately above. Holders of ordinary shares may also check details of their
    shareholding, subject to passing an identity check, on the Registrars&#146; website
  at www.computershare.com</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Depositary Bank
for the Company&#146;s ADR programme is:</font></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%">&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"> The
        Bank of New York<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor
Relations Dept, P.O. Box 11258<br>
Church St. Station<br>
New York, NY 10286-1258<br>
USA</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Telephone:
      +1 (800) 233 5601 (Toll free)</font></td>
  </tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ADS holders
    should address any queries or instructions regarding their holdings to The
    Bank of New York at the above address or telephone number. ADS holders can
    also, subject to passing an identity check, view their account balances and
    transaction history, sell shares and request certificates from their Global
  BuyDIRECT Plan at www.stockbny.com.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><font color="#e82417" size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">140</font></td>

    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</font></td>

</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p141"></a>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>

    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
      Information</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>

    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>

  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">


<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Online shareholder services<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company provides a number of shareholder services online at www.vodafone.com/shareholder, where shareholders may:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="5%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Register to receive electronic shareholder communications. Benefits to shareholders include faster receipt of communications such as annual reports, with cost and
time savings for the Company. Electronic shareholder communications are also more environmentally friendly;</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">View a live webcast of the AGM of the Company on 25 July 2006. A recording will be available to review after that date;</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">View and/or download the Annual Report and the Annual Review &amp; Summary Financial Statement 2006;</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Check the current share price;</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Calculate dividend payments; and</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Use interactive tools to calculate the value of shareholdings, look up the historic price on a particular date and chart Vodafone ordinary share price changes
against indices.</font></td>

</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Shareholders and other interested parties can also receive Company press releases,
including London Stock Exchange announcements, by registering for Vodafone News
via the
Company&#146;s website at www.vodafone.com/news.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Registering for Vodafone News will enable users to:</font></p>
<table width="100%" border=0 cellspacing=0 cellpadding=0>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">be alerted by free SMS as soon as news breaks;</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">access the latest news from their mobile; and</font></td>

</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top" width="3%"><font color="#f02015" size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#149;</font></td>

   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">have news automatically e-mailed to them.</font></td>

</tr>
</table>
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p141a"></a>Annual General Meeting<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The twenty-second AGM of the Company will be held at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1 on 25 July 2006 at 11.00 a.m. or, if later, on
conclusion of the Extraordinary General Meeting to be held immediately before it at 10.45 a.m.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Notice of Meeting, together with details of the business to be conducted
at the Meeting, is being circulated to shareholders with this Annual Report or
the Annual Review &amp; Summary Financial Statement and can be viewed at the
Company&#146;s website &#150; www.vodafone.com/agm.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The AGM will be transmitted
via a live webcast and can be viewed at the Company&#146;s website &#150; www.vodafone.com/agm &#150; on
the day of the meeting and a recording will be available to review after that
date.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
To find out more about the AGM and how to view the webcast, visit www.vodafone.com/agm.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p141b"></a>Corporate sponsored nominee service for shareholders<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Subject to
  changes to the Company&#146;s Articles of Association being approved at the Annual General Meeting on 25 July 2006, the Company intends to establish a Corporate Nominee
Service for Shareholders, which would be operated by the Company&#146;s Registrar. The service provides a facility for shareholders to remove their shares from the Vodafone Group Plc share register and hold them, together with other shareholders
through a nominee. There would be no need for a share certificate and, in addition, shareholders&#146; details
will not be held on the main register and so will remain confidential.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Details will be available
frollowing the AGM on the Company&#146;s website at www.vodafone.com/shareholder.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p141c"></a>ShareGift<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company supports ShareGift, the charity share donation scheme (registered charity number 1052686). Through ShareGift, shareholders who have only a very small number of shares
which might be considered uneconomic to sell are able to donate them to charity. Donated shares are aggregated and sold by ShareGift, the proceeds being passed on to a wide range of UK charities. Donating shares to charity gives rise neither to a
gain nor a loss for UK Capital Gains purposes and UK taxpayers may also be able to claim income tax relief on the value of the donation.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
ShareGift transfer
forms specifically for the Company&#146;s shareholders are available from the
Company&#146;s Registrars, Computershare Investor Services PLC and, even if the
share certificate has been lost or destroyed, the gift can be completed. The
service is generally free. However, there may be an indemnity charge for a lost
or destroyed share certificate where the value of the shares exceeds &pound;100.
Further details about ShareGift can be obtained from its website at www.ShareGift.org
or at 5 Lower Grosvenor Place, London SW1W 0EJ (telephone: +44 (0) 20 7828 1151).</font></p>
</div>
<div style="float: right; width: 48%">

<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p141d"></a>The Unclaimed Assets Register<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company participates in the Unclaimed Assets Register, which provides a search facility for financial assets which may have been forgotten and which donates a proportion of its
public search fees to a group of three UK charities (Age Concern, NSPCC and Scope). For further information, contact The Unclaimed Assets Register, Garden Floor, Bain House, 16 Connaught Place, London W2 2ES (telephone: +44 (0) 870 241 1713), or
visit its website at www.uar.co.uk.</font></p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p141e"></a>Share price history<br>
</font><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Upon flotation of the Company on 11 October 1988, the ordinary shares were valued at 170 pence each. On 16 September 1991, when the Company was finally demerged, for UK taxpayers the
base cost of Racal Electronics Plc shares was apportioned between the Company and Racal Electronics Plc for Capital Gains Tax purposes in the ratio of 80.036% and 19.964% respectively. Opening share prices on 16 September 1991 were 332 pence for
each Vodafone share and 223 pence for each Racal share.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
On 21 July 1994, the Company effected a bonus issue of two new shares for every
one then held and, on 30 September 1999, it effected a bonus issue of four new
shares for every one held at that date. The flotation and demerger share prices,
therefore, may be restated as 11.333 pence and 22.133 pence, respectively.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The share price at 31 March 2006 was 120.50 pence (31 March 2005: 140.50 pence).
The share price on 26 May 2006 was 119.75 pence.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The following tables set out, for the periods indicated, (i) the reported high
and low middle market quotations of ordinary shares on the London Stock Exchange,
(ii) the reported high and low sales prices of ordinary shares on the Frankfurt
Stock Exchange, and (iii) the reported high and low sales prices of ADSs on the
NYSE.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The Company&#146;s ordinary shares were traded on the Frankfurt Stock Exchange
from 3 April 2000 until 23 March 2004 and, therefore, information has not been
provided for periods
outside these dates.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Five year data on an annual basis</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">London Stock</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Frankfurt</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Stock Exchange</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">NYSE</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pounds per</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Euros per</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dollars</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ordinary share</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ordinary share</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">per ADS</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan=3 align="right"><hr noshade size=1></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan=3 align="right"><hr noshade size=1></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><hr noshade size=1>
   </td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Year</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2001/2002</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.29</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.24</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.70</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.00</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">33.26</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">17.88</font></td>

   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2002/2003</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.31</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.81</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.15</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.26</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.30</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12.76</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2003/2004</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.50</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.12</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2.22</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.59</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.88</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">18.10</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004/2005</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.49</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.14</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.54</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.83</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005/2006</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.55</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.09</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.04</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.32</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td align="left"><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Two year data on a quarterly basis</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">London Stock</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">NYSE</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pounds per</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dollars</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ordinary share</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">per ADS</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan=3 align="right"><hr noshade size=1></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><hr noshade size=1>
   </td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Year</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2004/2005</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">First Quarter</font></td>

   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.44</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.21</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.90</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.87</font></td>

   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Second Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.34</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.14</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.21</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.83</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Third Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.49</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.32</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.54</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.06</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fourth Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.46</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.35</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">27.53</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25.60</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2005/2006</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">First Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.47</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.34</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26.87</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.32</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Second Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.55</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.36</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28.04</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.90</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Third Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.52</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.23</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26.65</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.29</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Fourth Quarter</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.33</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.09</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.39</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.32</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2006/2007</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size="2">&nbsp;</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">First Quarter</font><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><sup>(1)</sup></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.30</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.14</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.23</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.07</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1) </font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Covering
    period up to 26 May 2006.</font></td>
  </tr>
</table>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p142"></a>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<p><font size="3">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Investor information<br>
</font></b><font color="#f02015" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">continued</font></font></p>
<div style="float: left; width: 48%">

<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Six month data on a monthly basis</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="52%"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">London Stock</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Exchange</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">NYSE</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Pounds per</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dollars</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right" colspan=3><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ordinary share</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">per ADS</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan=3 align="right"><hr noshade size=1></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td colspan="3" align="right"><hr noshade size=1>
   </td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Year</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Hig<b>h</b></font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Low</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">November 2005</font></td>

   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.52</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.25</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">26.65</font></td>

   <td width="2%" align="right"><font size="2">&nbsp;</font></td>
   <td width="10%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.55</font></td>

   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">December 2005</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.29</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.23</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.66</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.29</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">January 2006</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.33</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.18</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.39</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">20.86</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">February 2006</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.25</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.09</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.81</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.32</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">March 2006</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.30</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.12</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">22.74</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19.55</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">April 2006</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.30</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.21</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">23.70</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.07</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">May 2006<font size="1"><sup>(1)</sup></font></font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.30</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1.14</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">24.23</font></td>

   <td align="right"><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">21.53</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note:</font></td>
  </tr>
  <tr>
    <td width="5%"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(1) </font></td>
    <td> <font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">High
    and low share prices for May 2006 only reported until 26 May 2006.</font></td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
        current authorised share capital comprises 78,000,000,000 ordinary shares
        of $0.10
each and 50,000 7% cumulative fixed rate shares of &pound;1.00 each.</font></td>
  </tr>
</table>

<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Markets</font><br>
<font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Ordinary
shares of Vodafone Group Plc are traded on the London Stock Exchange and, in
the form of ADSs, on the New York Stock Exchange.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
ADSs, each representing ten ordinary shares, are traded on the New York Stock
Exchange under the symbol &#145;VOD&#146;. The ADSs are evidenced by ADRs issued
by The Bank of New York, as Depositary, under a Deposit Agreement, dated as of
12 October 1988, as amended and restated as of 26 December 1989, as further amended
and restated as of 16 September 1991 and as further amended and restated as of
30 June 1999, between the Company, the Depositary and the holders from time to
time of ADRs issued thereunder.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
ADS holders are not members of the Company but may instruct The Bank of New York
on the exercise of voting rights relative to the number of ordinary shares represented
by their ADSs.
See &#147;Memorandum and Articles of Association and Applicable English Law &#150;Rights
attaching to the Company&#146;s shares &#150; Voting rights&#148; below.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholders at 31 March 2006</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number of</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">% of total</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">ordinary shares</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Number of</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">issued</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">held</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">accounts</font></td>
   <td align="right"><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">shares</font></td>
   <td><font size="1" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1 &#150; 1,000</font></td>

   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">439,814</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.19</font></td>

   <td width="2%"><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,001 &#150; 5,000</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102,534</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.33</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5,001&#150; 50,000</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">28,540</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.57</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50,001 &#150; 100,000</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,451</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.15</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100,001&#150; 500,000</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,292</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">0.45</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">More than 500,000</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">1,937</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98.31</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><hr noshade size=1></td>
   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">575,568</font></td>

   <td><font size="2">&nbsp;</font></td>
   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">100.00</font></td>

   <td><font size="2">&nbsp;</font></td>
</tr>
<tr>
  <td><hr noshade size=2>
  </td>
  <td><hr noshade size=2> </td>
  <td><hr noshade size=2> </td>
  <td><hr noshade size=2> </td>
  <td><font size="2">&nbsp;</font></td>
</tr>
</table>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Geographical analysis of shareholders</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At
31 March 2006, approximately 52.68% of the Company&#146;s shares were held in
the UK, 32.04% in North America, 12.86% in Europe (excluding the UK) and 2.42%
in the Rest of the
World.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Major shareholders</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Bank of New York, as custodian of the Company&#146;s ADR programme, held approximately 12.8% of the Company&#146;s
ordinary shares of $0.10 each at 26 May 2006 as nominee. The total number of
ADRs outstanding at 26 May 2006 was 773,146,523. At this date, 1,147 holders
of record of ordinary shares had registered addresses in the United States and
in total held approximately 0.006% of the ordinary shares of the Company. As
at 26 May 2006, the following percentage interests in the ordinary share capital
of the Company, disclosable under Part VI of the Companies Act 1985, have been
notified to the directors:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td align="left"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholder</font></td>
   <td align="right"><font size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Shareholding</font></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Capital Group Companies, Inc.</font></td>

   <td width="15%" align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5.56%</font></td>

   <td width="2%">&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Barclays PLC</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.92%</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Legal &amp; General Investment Management</font></td>

   <td align="right"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3.67%</font></td>

   <td>&nbsp;</td>
</tr>
<tr>
   <td><hr noshade size=1></td>
   <td align="right"><hr noshade size=1></td>
   <td>&nbsp;</td>
</tr>
</table>
</div>
<div style="float: right; width: 48%">

<p>
  <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The rights attaching to the ordinary shares of the Company held by these shareholders are identical in all respects to the rights attaching to all the ordinary shares of the Company.
  The directors are not aware, as at 26 May 2006, of any other interest of 3% or more in the ordinary share capital of the Company. The Company is not directly or indirectly owned or controlled by any foreign government or any other legal entity.
  There are no arrangements known to the Company that could result in a change of control of the Company.</font></p>
  <p> <font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p142a"></a>Memorandum
    and Articles of Association and Applicable<br>
    English law</font><br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The following
    description summarises certain provisions of the Company&#146;s Memorandum
    and Articles of Association and applicable English law. This summary is qualified
    in its entirety by reference to the Companies Act 1985 of Great Britain (the
    &#147;Companies Act&#148;), as amended, and the Company&#146;s Memorandum
    and Articles of Association. Information on where shareholders can obtain
    copies of the Memorandum and Articles of Association is provided under &#147;Documents
    on Display&#148;.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
All of the Company&#146;s ordinary shares are fully paid. Accordingly, no further
contribution of capital may be required by the Company from the holders of such
shares.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
English law specifies that any alteration to the Articles of Association must
be approved by a special resolution of the shareholders.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company&#146;s Objects</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company is a public limited company under the laws of England and Wales. The
Company is registered in England and Wales under the name Vodafone Group Public
Limited Company, with
the registration number 1833679. The Company&#146;s objects are set out in the fourth clause of its Memorandum of Association and cover a wide range of activities, including to carry on the business of a holding company, to carry on business as
dealers in, operators, manufacturers, repairers, designers, developers, importers and exporters of electronic, electrical, mechanical and aeronautical equipment of all types as well as to carry on all other businesses necessary to attain the
Company&#146;s objectives. The Memorandum of Association grants the Company a
broad range of powers to effect its objects.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Directors</font><br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company&#146;s Articles of Association provide for a Board of directors, consisting
of not fewer than three directors, who shall manage the business and affairs
of the
Company.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under the Company&#146;s Articles of Association, a director cannot vote in respect
of any proposal in which the director, or any person connected with the director,
has a material
interest other than by virtue of the director&#146;s interest in the Company&#146;s
shares or other securities. However, this restriction on voting does not apply
to resolutions (a) giving the director or a third party any guarantee, security
or indemnity in respect of obligations or liabilities incurred at the request
of or for the benefit of the Company, (b) giving any guarantee, security or indemnity
to the director or a third party in respect of obligations of the Company for
which the director has assumed responsibility under an indemnity or guarantee,
(c) relating to an offer of securities of the Company in which the director participates
as a holder of shares or other securities or in the underwriting of such shares
or securities, (d) concerning any other company in which the director (together
with any connected person) is a shareholder or an officer or is otherwise interested,
provided that the director (together with any connected person) is not interested
in
1% or more of any class of the company&#146;s equity share capital or the voting
rights available to its shareholders, (e) relating to the arrangement of any
employee benefit in which the director will share equally with other employees
and (f) relating to any insurance that the Company purchases or renews for its
directors or any group of people, including directors.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The directors are empowered to exercise all the powers of the Company to borrow
money, subject to the limitation that the aggregate amount of all liabilities
and obligations of the Group outstanding at any time shall not exceed an amount
equal to 1.5 times the aggregate of the Group&#146;s share capital and reserves
calculated in the manner prescribed in the Articles of Association, unless sanctioned
by an ordinary resolution
of the Company&#146;s shareholders.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In accordance with the Company&#146;s Articles of Association, directors retiring
at each AGM are those last elected or re-elected at or before the AGM held in
the third calendar year before the current year. In 2005, the Company reviewed
its policy regarding the retirement and re-election of directors and, although
it is not intended to amend the Company&#146;s Articles in this regard, the Board
has decided, in the interests of good corporate governance, that all the directors
should offer themselves for re-election annually. Accordingly, all the directors
will submit themselves for re-election at the 2006 AGM, except for Lord MacLaurin
of Knebworth, Sir Julian Horn-Smith,
Paul Hazen and Penny Hughes, who are retiring.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></td>

    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</font></td>

</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p143"></a>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
          Information</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">No person
      is disqualified from being a director or is required to vacate that office
      by reason of age. If, at a general meeting, a director who is 70 or more
      years of age is proposed
  for election or re-election, that director&#146;s age must be set out in the
  notice of the meeting.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Directors are not
required, under the Company&#146;s Articles, to hold any shares of the
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Company
as a qualification to act as a director, although executive directors participating
in long term
incentive plans must comply with the Company&#146;s share ownership guidelines.
In accordance with best practice in the UK for corporate governance, compensation
awarded to executive directors is decided by a remuneration committee consisting
exclusively of non-executive directors.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In addition, as required
by The Directors&#146; Remuneration Report Regulations, the Board has, since
2003, prepared a report to shareholders on the directors&#146; remuneration which
complies with the Regulations (see pages 61 to 69). The report is also subject
to a shareholder vote.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Rights attaching to the Company&#146;s shares</font><br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Dividend rights</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Holders
of the Company&#146;s ordinary shares may by ordinary resolution declare dividends
but may not declare dividends in excess of the amount recommended by the directors.
The Board of directors may also pay interim dividends. No dividend may be paid
other than out of profits available for distribution. Dividends on ordinary shares
will be announced in pounds sterling. Holders of ordinary shares with a registered
address in a euro-zone country (defined, for this purpose, as a country that
has adopted the euro as its national currency) will receive their dividends in
euro, exchanged from pounds sterling at a rate fixed by the Board of directors
in accordance with the Articles of Association. Dividends for ADS holders represented
by ordinary shares held by the Depositary will be paid to the Depositary in US
dollars, exchanged from pounds sterling at a rate fixed by the directors in accordance
with the Articles of Association, and the Depositary will distribute them to
the ADS holders.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
If a dividend has not been claimed for one year after the later of the resolution
passed at a general meeting declaring that dividend or the resolution of the
directors providing for payment of that dividend, the directors may invest the
dividend or use it in some other way for the benefit of the Company until the
dividend is claimed. If the dividend remains unclaimed for 12 years after the
relevant resolution either declaring that dividend or providing for payment of
that dividend, it will be forfeited and belong to the Company.</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Voting rights</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The
Company&#146;s Articles of Association provide that voting on Substantive Resolutions
(i.e. any resolution which is not a Procedural Resolution) at a general meeting
shall be decided on a poll. On a poll, each shareholder who is entitled to vote
and is present in person or by proxy has one vote for every share held. Procedural
Resolutions (such as a resolution to adjourn a General Meeting or a resolution
on the choice of Chairman of a General Meeting) shall be decided on a show of
hands, where each shareholder who is present at the meeting has one vote regardless
of the number of shares held, unless a poll is demanded. In addition, the Articles
of Association allow persons appointed as proxies of shareholders entitled to
vote at general meetings to vote on a show of hands, as well as to vote on a
poll and attend and speak at general meetings. Holders of the Company&#146;s
ordinary shares do not have cumulative
voting rights.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under English law, two shareholders present in person constitute a quorum for
purposes of a general
meeting, unless a company&#146;s articles of association specify otherwise. The
Company&#146;s Articles of Association do not specify otherwise, except that
the shareholders do not need to be present in person, and may instead be present
by proxy, to constitute a quorum.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under English law, shareholders of a public company such as the Company are not
permitted to pass resolutions by written consent.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Record holders of
the Company&#146;s ADSs are entitled to attend, speak and vote on a poll or a
show of hands at any general meeting of the Company&#146;s shareholders by the
Depositary&#146;s appointment of them as corporate representatives with respect
to the underlying ordinary shares represented by their ADSs. Alternatively, holders
of ADSs are entitled to vote by supplying their voting instructions to the Depositary
or its nominee, who will vote the ordinary shares underlying their ADSs in accordance
with their instructions.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Employees are able to vote any shares held under the Vodafone Group Share Incentive
Plan and &#147;My ShareBank&#148; (a vested share account) through the respective
plan&#146;s
trustees, Mourant ECS Trustees Limited.</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Liquidation rights</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">In
the event of the liquidation of the Company, after payment of all liabilities
and deductions in
accordance with English law, the holders of the Company&#146;s 7% cumulative
fixed rate shares would be entitled to a sum equal to the capital paid up on
such shares,</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">together
    with certain dividend payments, in priority to holders of the Company&#146;s
    ordinary shares. The holders of the fixed rate shares do not have any other
  right to share in the Company&#146;s surplus assets.</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Pre-emptive rights and new issues of shares</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under
Section 80 of the Companies Act, directors are, with certain exceptions, unable
to allot relevant securities without the authority of the shareholders in a general
meeting. Relevant
securities as defined in the Companies Act include the Company&#146;s ordinary
shares or securities convertible into the Company&#146;s ordinary shares. In
addition, Section 89 of the Companies Act imposes further restrictions on the
issue of equity securities (as defined in the Companies Act, which include the
Company&#146;s ordinary shares and securities convertible into ordinary shares)
which are, or are to be, paid up wholly in cash and not first offered to existing
shareholders.
The Company&#146;s Articles of Association allow shareholders to authorise directors
for a period up to five years to allot (a) relevant securities generally up to
an amount fixed by the shareholders and (b) equity securities for cash other
than in connection with a rights issue up to an amount specified by the shareholders
and free of the restriction in Section 89. In accordance with institutional investor
guidelines, the amount of relevant securities to be fixed by shareholders is
normally restricted to one third of the existing issued ordinary share capital,
and the amount of equity securities to be issued for cash other than in connection
with a rights issue is restricted to 5% of the existing issued ordinary share
capital.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Disclosure of interests in the Company&#146;s shares</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are
  no provisions in the Articles of Association whereby persons acquiring, holding
  or disposing of a certain percentage of the Company&#146;s shares are required
  to make disclosure of their ownership percentage, although such requirements
  exist under the Companies Act.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
The basic disclosure requirement under Sections 198 to 211 of the Companies Act
imposes upon a person interested in the shares of the Company a statutory obligation
to provide written notification to the Company, including certain details as
set out in the Companies Act, where:</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(a)</font></td>
   <td valign="top" colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">he
       acquires (or becomes aware that he has acquired) or ceases to have (or
       becomes aware that he has ceased to have) an interest in shares comprising
    any class of the Company&#146;s issued and voting share capital; and</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top" colspan="2">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(b)</font></td>
   <td valign="top" colspan="2"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">as a result, EITHER he obtains, or ceases to have:</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td width="5%" valign="top">&nbsp;</td>
   <td width="5%" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(i)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a &#147;material interest&#148; in
    3%, or more; or</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top">&nbsp;</td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(ii)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">an
       aggregate interest (whether &#147;material&#148; or not) in 10%, or more of the Company&#146;s
    voting capital; or</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(iii)</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">the
      percentage of his interest in the Company&#146;s voting capital remains
    above the relevant level and changes by a whole percentage point.</font></td>
</tr>
</table>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A &#147;material
    interest&#148; means, broadly, any beneficial interest (including those of
    a spouse or a child or a step-child (under the age of 18), those of a company
    which is accustomed to act
in accordance with the relevant person&#146;s instructions or in which one third
or more of the votes are controlled by such person and certain other interests
set out in the Companies Act) other than those of an investment manager or an
operator of a unit trust/recognised scheme/collective investment scheme/open-ended
investment company.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sections
      204 to 206 of the Companies Act set out particular rules of disclosure
    where two or more parties (each a &#147;concert party&#148;) have entered
    into an agreement to acquire interests in shares of a public company, and
    the
      agreement imposes obligations/restrictions on any concert party with respect
      to the use, retention or disposal of the shares in the company and an acquisition
  of shares by a concert party pursuant to the agreement has taken place.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under Section
    212 of the Companies Act, the Company may by notice in writing require a
    person that the Company knows or has reasonable cause to believe is or was
    during the preceding three years interested in the Company&#146;s shares
    to indicate whether or not that is correct and, if that person does or did
    hold an interest in the Company&#146;s shares, to provide certain information
    as set out in
the Companies Act.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Sections
    324 to 329 of the Companies Act further deal with the disclosure by persons
    (and
certain members of their families) of interests in shares or debentures of the
companies of which they are directors and certain associated companies.</font></p>
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are
    additional disclosure obligations under Rule 3 of the Substantial Acquisitions
    Rules where a person acquires 15% or more of the voting rights of a listed
    company or when an acquisition increases his holding of shares or rights
    over shares so as to increase his voting rights beyond that level by a whole
    percentage point. Notification in this case should be to the Company, the
    Panel on Takeovers and Mergers and the UK Listing Authority through one of
    its approved regulatory information services no later than 12 noon on the
business day following the date of the acquisition.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">143</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
      Information</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p><b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Investor information </font></b><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><br>
continued</font></p>


<div style="float: left; width: 48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The City Code on Takeovers and Mergers also contains strict disclosure requirements on all parties to a takeover with regard to dealings in the securities of an offeror or offeree
  company and also on their respective associates during the course of an offer period.</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">General meetings and notices</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Annual general meetings are held at such times and place as determined by the directors of the Company. The directors may also, when they think fit, convene an extraordinary general
meeting of the Company. Extraordinary general meetings may also be convened on requisition as provided by the Companies Act.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
An annual general meeting and an extraordinary general meeting called for the
passing of a special resolution need to be called by not less than twenty-one
days&#146; notice in writing and all other extraordinary general meetings by
not less than fourteen days&#146; notice in writing. The directors may determine
that persons entitled to receive notices of meetings are those persons entered
on the register at the close of business on a day determined by the directors
but not later than twenty-one days before the date the relevant notice is sent.
The notice may also specify the record date, which shall not be more than forty-eight
hours before the time fixed for
the
meeting.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Shareholders must provide the Company with an address or (so far as the Companies
Act allows) an electronic address or fax number in the United Kingdom in order
to be entitled
to
receive notices of shareholders&#146; meetings and other notices and documents.
In certain circumstances, the Company may give notices to shareholders by advertisement
in newspapers in the United Kingdom. Holders of the Company&#146;s ADSs are entitled
to receive notices under the terms of the Deposit Agreement
relating to the ADSs.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under Section 366
of the Companies Act 1985 and the Company&#146;s Articles of
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Association,
the annual general meeting of shareholders must be held each calendar year with
no more than fifteen months elapsing since the date of the preceding annual general
meeting.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Variation of rights</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">If, at any
  time, the Company&#146;s share capital is divided into different classes of
  shares, the rights attached to any class may be varied, subject to the provisions
  of the Companies Act, either with the consent in writing of the holders of
  three fourths in nominal value of the shares of that class or upon the adoption
  of an extraordinary resolution passed at a separate meeting of the holders
  of the shares of that
class.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
At every such separate meeting, all of the provisions of the Articles of Association
relating to proceedings at a general meeting apply, except that (a) the quorum
is to be the number of persons (which must be at least two) who hold or represent
by proxy not less than one-third in nominal value of the issued shares of the
class or, if such quorum is not present on an adjourned meeting, one person who
holds shares of the class regardless of the number of shares he holds, (b) any
person present in person or by proxy may demand a poll, and (c) each shareholder
will have one vote per share held in that particular class in the event a poll
is taken.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Class rights are deemed not to have been varied by the creation or issue of new
shares ranking equally with or subsequent to that class of shares in sharing
in profits or assets of the Company or by a redemption or repurchase of the shares
by the Company.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Limitations on voting and shareholding</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are no
limitations imposed by English law or the Company&#146;s Articles of Association on the right of non-residents or foreign persons to hold or vote the Company&#146;s
shares other than those limitations that would generally apply to all of the
shareholders.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p144"></a>Documents on display</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">The Company
is subject to the information requirements of the US Securities and Exchange
Act of 1934 applicable to foreign private issuers. In accordance with these requirements,
the Company files its Annual Report on Form 20-F and other related documents
with the SEC. These documents may be inspected at the SEC&#146;s public reference rooms located at 450 Fifth Street, NW Washington, DC 20549. Information on the operation of
the public reference room can be obtained in the US by calling the SEC on +1-800-SEC-0330. In addition, some of the Company&#146;s SEC filings, including all those filed on or after 4 November 2002, are available on the SEC&#146;s website at
www.sec.gov. Shareholders can also obtain copies of the Company&#146;s Memorandum and Articles of Association from the Vodafone website at www.vodafone.com or from the Company&#146;s
registered office.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p144a"></a>Material contracts</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">At the date
of this Annual Report, the Group is not party to any contracts that are considered
material to the Group&#146;s results or operations, except for its $10.9 billion credit
facilities which are discussed under &#147;Financial Position and Resources &#150; Liquidity and Cash Resources&#148;.</font>
</p>
</div>
<div style="float: right; width: 48%">
<p><font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p144b"></a>Exchange controls</font>
    <br>
    <font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">There are no
  UK government laws, decrees or regulations that restrict or affect the export
  or import of capital, including but not limited to, foreign exchange controls
  on remittance
  of dividends on the ordinary shares or on the conduct of the Group&#146;s operations, except as otherwise set out under &#147;Taxation&#148; below.</font>
</p>
<p>
<font color="#f02015" size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><a name="p144c"></a>Taxation</font>
<br>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">As this is a complex area, investors should consult their own tax adviser regarding the US federal, state and local, the UK and other tax consequences of owning and disposing of
shares and ADSs in their particular circumstances.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
This section describes for a US holder (as defined below), in general terms,
the principal US federal income tax and UK tax consequences of owning shares
or ADSs in the Company as capital assets (for US and UK tax purposes). This section
does not, however, cover the tax consequences for members of certain classes
of holders subject to special rules and holders that, directly or indirectly,
hold 10 per cent or
more of the
Company&#146;s voting stock.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A US holder is a beneficial owner of shares or ADSs that is for US federal income
tax purposes:
</font></p>
<table border=0 cellpadding=0 cellspacing=0>
<tr align="left">
   <td width="5%" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(i)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a citizen or resident of the United States;</font></td>
</tr>
<tr align="left">
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr align="left">
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(ii)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a US domestic corporation;</font></td>
</tr>
<tr align="left">
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr align="left">
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(iii)</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">an
      estate the income of which is subject to US federal income tax regardless
      of its source; or</font></td>
</tr>
<tr align="left">
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr align="left">
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(iv)</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a
      trust if a US court can exercise primary supervision over the trust&#146;s
      administration and one or more US persons are authorised to control all
      substantial
decisions of the trust.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
This section is based on the Internal Revenue Code of 1986, as amended, its legislative
history, existing and proposed regulations thereunder, published rulings and
court decisions, and on the tax laws of the United Kingdom and the Double Taxation
Convention between
the United States and the United Kingdom (the &#147;Treaty&#148;), all as currently
in effect. These laws are subject to change, possibly on a retroactive
basis.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
This section is further based in part upon the representations of the Depositary
and assumes that each obligation in the Deposit Agreement and any related agreement
will be performed
in accordance with its terms.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Based on this assumption, for purposes of the Treaty and the US-UK double taxation
convention relating
to estate and gift taxes (the &#147;Estate Tax Convention&#148;), and for US
federal income tax and UK tax purposes, a holder of ADRs evidencing ADSs will
be treated as the owner of the shares in the Company represented by those ADSs.
Generally, exchanges of shares for ADRs, and ADRs for shares, will not be subject
to US federal income tax or to UK tax, other than stamp duty or stamp duty reserve
tax (see the section on these taxes below).
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation of dividends</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK taxation</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Under
current UK tax law, no withholding tax will be deducted from dividends paid by
the Company.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A shareholder that is a company resident for UK tax purposes in the United Kingdom
will not be taxable on a dividend it receives from the Company. A shareholder
in the Company who is an individual resident for UK tax purposes in the United
Kingdom is entitled, in calculating their liability to UK income tax, to a tax
credit on cash dividends paid on shares in the Company or ADSs, and the tax credit
is equal to one-ninth of the
cash dividend.
</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US federal income taxation</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
US holder is subject to US federal income taxation on the gross amount of any
dividend paid by the Company out of its current or accumulated earnings and profits
(as determined for US federal income tax purposes). Dividends paid to a non-corporate
US holder in tax years beginning before 1 January 2009 that constitute qualified
dividend income will be taxable to the holder at a maximum tax rate of 15%, provided
that the ordinary shares or ADSs are held for more than 60 days during the 121
day period beginning 60 days before the ex-dividend date and the holder meets
other holding period requirements. Dividends paid by the Company with respect
to the shares or ADSs
will generally be qualified dividend income.
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A US holder is not subject to a UK withholding tax. The US holder includes in
gross income for US federal income tax purposes only the amount of the dividend
actually received from the Company, and the receipt of a dividend does not entitle
the US holder to a foreign tax credit.
</font></p>
</div>
<p><br clear="all">
</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p145"></a>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
      Information</FONT></B></td>
  </tr>
  <tr>
    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<div style="float: left; width: 48%">
<p><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Dividends
    must be included in income when the US holder, in the case of shares, or
    the Depositary, in the case of ADSs, actually or constructively receives
    the dividend
    and will not be eligible for the dividends-received deduction generally allowed
    to US corporations in respect of dividends received from other US corporations.
    Dividends will be income from sources outside the United States. Dividends
    paid in taxable years
  beginning before 1 January 2007 generally will be &#147;passive&#148; or &#147;financial services&#148; income, and dividends paid in taxable years beginning after 31 December 2006 generally will be &#147;passive&#148; or &#147;general&#148; income,
  which in either case is treated separately from other types of income for the
  purposes of computing any allowable foreign tax credit.</font><font size="2">
</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
In the case of shares, the amount of the dividend distribution to be included
in income will be the US dollar value of the pound sterling payments made, determined
at the spot pound sterling/US dollar rate on the date of the dividend distribution,
regardless of whether the payment is in fact converted into US dollars. Generally,
any gain or loss resulting from currency exchange fluctuations during the period
from the date the dividend payment is to be included in income to the date the
payment is converted into US dollars will be treated as ordinary income or loss.
Generally, the gain or loss will be income or loss from sources within the United
States for foreign tax
credit limitation purposes.
</font></p>
<p>
<font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Taxation of capital gains</font>
<br>
<b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK taxation</font></b><font size="2">
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
US holder may be liable for both UK and US tax in respect of a gain on the disposal
of the Company&#146;s
shares or ADSs if the US holder is:
</font></p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
<tr>
   <td width="5%" valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(i)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a citizen of the United States resident or ordinarily resident for UK tax purposes in the United Kingdom;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(ii)</font></td>
   <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a
       citizen of the United States who has been resident or ordinarily resident
       for UK tax purposes in the United Kingdom, ceased to be so resident or
       ordinarily resident for a period of less than 5 years of assessment and
       who disposed of the shares or ADSs during that period (a &#147;Temporary Non-Resident&#148;), unless the shares or ADSs were also acquired during that period, such liability arising on
that individual&#146;s return to the UK;</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(iii)</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a
      US domestic corporation resident in the United Kingdom by reason of being
      centrally managed and controlled in the United Kingdom; or</font></td>
</tr>
<tr>
  <td valign="top">&nbsp;</td>
  <td valign="top">&nbsp;</td>
</tr>
<tr>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">(iv)</font></td>
  <td valign="top"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">a
      citizen of the United States or a corporation that carries on a trade,
      profession or vocation in the United Kingdom through a branch or agency
      or, in respect of companies, through a permanent establishment and that
      has used the shares or ADSs for the purposes of such trade, profession
      or vocation or has used, held or acquired the shares or ADSs for the purposes
      of such branch or agency or permanent
establishment.</font></td>
</tr>
</table>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
Under the Treaty, capital gains on dispositions of the shares or ADSs are generally
subject to tax only in the country of residence of the relevant holder as determined
under both the laws of the United Kingdom and the United States and as required
by the terms of the Treaty. However, individuals who are residents of either
the United Kingdom or the United States and who have been residents of the other
jurisdiction (the US or the UK, as the case may be) at any time during the six
years immediately preceding the relevant disposal of shares or ADSs may be subject
to tax with respect to capital gains arising from the dispositions of the shares
or ADSs not only in the country of which the holder is a resident at the time
of the disposition but also in that other country (although, in respect of UK
taxation, generally only to the extent that such an individual comprises a Temporary
Non-Resident).</font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">US federal income taxation</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">A
US holder that sells
or otherwise disposes of the Company&#146;s shares or ADSs will recognise a capital
gain or loss for US federal income tax purposes equal to the difference between
the US dollar value of the amount realised and the holder&#146;s tax basis, determined
in US dollars, in the shares or ADSs. Generally, a capital gain of a non-corporate
US holder that is recognised before 1 January 2009 is taxed at a maximum rate
of 15%, provided the holder has a holding period of more than one year. The gain
or loss will generally be income or loss from sources within the United States
for foreign tax credit limitation purposes. The deductibility of losses is subject
to limitations.</font></p>
</div>
<div style="float: right; width: 48%">
<p><font size="3" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Additional tax considerations</font>
    <br>
    <b><font color="#f02015" size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK inheritance tax</font></b><font size="2">
  <br>
    </font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">An
    individual who is domiciled in the United States (for the purposes of the
    Estate Tax Convention) and is not a UK national will not be subject to UK
    inheritance tax in respect of the Company&#146;s shares or ADSs on the individual&#146;s
    death or on a transfer of the shares or ADSs during the individual&#146;s
    lifetime, provided that any applicable US federal gift or estate tax is paid,
    unless the shares or ADSs are part of the business property of a UK permanent
    establishment or pertain to a UK fixed base used for the performance of independent
    personal services. Where the shares or ADSs have been placed in trust by
    a settlor, they may be subject to UK inheritance tax unless, when the trust
    was created, the settlor was domiciled in the United States and was not a
    UK national. Where the shares or ADSs are subject to both UK inheritance
    tax and to US federal gift or estate tax, the Estate Tax Convention generally
    provides a credit against US federal tax liabilities for UK inheritance tax
    paid.
  </font></p>
<p><font size="2">
<b><font color="#f02015" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">UK stamp duty and stamp duty reserve tax</font></b>
<br>
</font><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Stamp
duty will, subject to certain exceptions, be payable on any instrument transferring
shares in the Company to the Custodian of the Depositary at the rate of 1.5%
on the amount or value of the consideration if on sale or on the value of such
shares if not on sale. Stamp duty reserve tax (SDRT), at the rate of 1.5% of
the price or value of the shares, could also be payable in these circumstances,
and on issue to such a person, but no SDRT will be payable if stamp duty equal
to such SDRT liability is paid. In accordance with the terms of the Deposit Agreement,
any tax or duty payable on deposits of shares by the Depositary or the Custodian
of the Depositary will be charged to the party to whom ADSs are delivered against
such deposits.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
No stamp duty will be payable on any transfer of ADSs of the Company, provided
that the ADSs and any separate instrument of transfer are executed and retained
at all times outside the
United Kingdom.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
A transfer of shares in the Company in registered form will attract ad valorem
stamp duty generally at the rate of 0.5% of the purchase price of the shares.
There is no charge to ad valorem stamp duty on gifts. On a transfer from nominee
to beneficial owner (the nominee having at all times held the shares on behalf
of the transferee) under which no beneficial interest passes and which is neither
a sale nor in
contemplation of a
sale, a fixed &pound;5.00 stamp duty will be payable.</font></p>
<p><font size="2" face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">
SDRT is generally payable on an unconditional agreement to transfer shares in
the Company in registered form at 0.5% of the amount or value of the consideration
for the transfer, but is repayable if, within six years of the date of the agreement,
an instrument transferring the shares is executed or, if the SDRT has not been
paid, the liability to pay the tax (but not necessarily interest and penalties)
would be cancelled. However, an agreement to transfer the ADSs of the Company
will not give rise to SDRT.</font></p>
</div><br clear="all">
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">145</FONT></td>
  </tr>
</table>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p146"></a>
<p><a href="#contents5"><font size="2">Back to Contents</font></a></p>
<p>
<b><font color="#f02015" size="3" face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Form 20-F Cross Reference Guide</font></b>
</p>
<p>
<font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Certain of the information in this document that is referenced in the following table is included in the Company&#146;s Annual Report on Form 20&#150;F for 2006 filed with the SEC
(the &#147;2006 Form 20&#150;F&#148;). No other information in this document is included in the 2006 Form 20&#150;F or incorporated by reference into any filings by the Company under the US Securities Act of 1933, as amended. Please see
&#147;Documents on display&#148; for information on how to access the 2006 Form 20&#150;F as filed with the SEC. The 2006 Form 20&#150;F has not been approved or disapproved by the SEC nor has the SEC passed judgement upon the adequacy or accuracy
of the 2006 Form 20&#150;F.</font>
</p>
<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<tr>
   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Item</font></b></td>
   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Form 20&#150;F caption</font></b></td>
   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Location in this document</font></b></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Page</font></b></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td width="5%" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">1</font></b></td>
   <td width="32%" align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Identity of Directors, Senior Management</font></b></td>
   <td width="55%" align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">and Advisers</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></b></td>
   <td align="right" valign="bottom"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></b></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">2</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Offer Statistics and Expected Timetable</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></b></td>
   <td align="right" valign="bottom"><b><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></b></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">3</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Key Information</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3A Selected Financial Data</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Highlights</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">2</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Introduction &#150; Foreign Currency Translation</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3B Capitalisation and indebtedness</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3C Reasons for the offer and use of proceeds</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">3D Risk Factors</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk factors, Trends and Outlook &#150; Risk Factors</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">43</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Information on the Company</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4A History and Development of the Company</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business Overview &#150; History and Development of the Company</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Contact Details</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">back cover</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4B Business Overview</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business Overview</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">12</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating Results &#150; Review of Operations</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">32</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk Factors, Trends and Outlook &#150; Trend Information</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Material Contracts</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4C Organisational Structure</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 12 &#147;Principal subsidiary undertakings&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">94</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 13 &#147;Investments in joint ventures&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">95</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 14 &#148;Investments in associated undertakings&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 15 &#147;Other investments&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">96</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">4D Property, Plant and Equipment</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business Overview &#150; Licences and network infrastructure &#150; Mobile network infrastructure</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">14</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Responsibility and Environmental Issues &#150; Environmental Issues</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">60</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">4A</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Unresolved Staff Comments</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">None</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">5</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Operating and Financial Review and Prospects</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5A Operating Results</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Operating Results</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">30</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 24 &#147;Borrowings&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Introduction &#150; Inflation</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">25</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5B Liquidity and Capital Resources</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources &#150; Liquidity and Capital Resources</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5C Research and Development, Patents and</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Licences, etc.</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Business Overview &#150; Global Services &#150; Research and Development</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">19</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5D Trend Information</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Risk Factors, Trends and Outlook &#150; Trend Information</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">44</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5E Off-balance sheet arrangements</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources &#150; Liquidity and Capital Resources &#150; Off-balance sheet arrangements</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">42</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 30 &#147;Commitments&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">116</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 31 &#147;Contingent liabilities&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5F Tabular disclosure of contractual obligations</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources &#150; Contractual Obligations</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">39</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">5G Safe harbor</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Cautionary Statement Regarding Forward&#150;Looking Statements</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">46</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">6</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Directors, Senior Management and Employees</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6A Directors and Senior Management</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board of Directors and Group Management</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6B Compensation</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6C Board Practices</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Governance</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board of Directors and Group Management</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">50</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6D Employees</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Employees</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">58</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 34 &#147;Employees&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">6E Share Ownership</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration &#150; Directors&#146; interests in the shares of the Company</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">66</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 19 &#147;Called up share capital&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">98</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">7</font></b></td>
   <td colspan=2 align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Major Shareholders and Related Party Transactions</font></b></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7A Major Shareholders</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Major shareholders</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7B Related Party Transactions</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Board&#146;s Report to Shareholders on Directors&#146; Remuneration</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">61</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 36 &#147;Related party transactions&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">120</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 31 &#147;Contingent liabilities&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">7C Interests of experts and counsel</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">8</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial Information</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8A Consolidated Statements and Other Financial</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated Financial Statements</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Information</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Report of Independent Auditors</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">131</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 31 &#147;Contingent liabilities&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">117</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial Position and Resources &#150; Equity Dividends</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">38</font></td>
  </tr>
<tr>
   <td valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">8B Significant Changes</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 35 &#147;Subsequent events&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">119</font></td>
  </tr>
<tr>
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  </td>
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  </td>
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  </td>
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  </td>
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</table>

<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">146</FONT></TD>
    <TD><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
    Group Plc</font></b> Annual Report 2006</FONT></TD>
</TR>
</TABLE>
<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<a name="p147"></a>
<p><a href="#contents4"><font size="2">Back to Contents</font></a></p>
<table width="100%" border="0" cellspacing="0" cellpadding="2">
  <tr>
    <td width="80%" align="right"><font size="1">&nbsp;</font></td>
    <td align="center" bgcolor="#e82417"><B><FONT color="#ffffff" size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Shareholder
      Information</FONT></B></td>
  </tr>
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    <td align="right"><font size="1">&nbsp;</font></td>
    <td align="right" bgcolor="#e82417"><font size="1">&nbsp;</font></td>
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<p>&nbsp;</p>


<table width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
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   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Item</font></b></td>
   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Form 20&#150;F caption</font></b></td>
   <td align="left" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Location in this document</font></b></td>
   <td align="right" valign="bottom"><b><font size=1 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Page</font></b></td>
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   <td width="5%" align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">9</font></b></td>
   <td width="32%" align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">The Offer and Listing</font></b></td>
   <td width="55%" align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td width="8%" align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9A Offer and listing details</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Share Price History</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">141</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9B Plan of distribution</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9C Markets</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Markets</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">142</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9D Selling shareholders</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9E Dilution</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">9F Expenses of the issue</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">10</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Additional Information</font></b></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="right" valign="bottom"><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10A Share capital</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10B Memorandum and articles of association</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Memorandum and Articles of Association and Applicable English law</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10C Material contracts</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Material Contracts</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10D Exchange controls</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Exchange Controls</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10E Taxation</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Taxation</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10F Dividends and paying agents</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10G Statement by experts</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10H Documents on Display</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Investor Information &#150; Documents on Display</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">144</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">10I Subsidiary information</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="top"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">11</font></b></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Quantitative and Qualitative Disclosures<br>
    About Market Risk   </font></b></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note
    24 &#147;Borrowings&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="top"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">12</font></b></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Description of Securities Other than Equity<br>
    Securities   </font></b></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not
    applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="top"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">13</font></b></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Defaults, Dividend Arrearages and<br>
    Delinquencies   </font></b></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not
    applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="top"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">14</font></b></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Material Modifications to the Rights of<br>
    Security Holders and Use of Proceeds   </font></b></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not
    applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">15</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Controls and Procedures</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Governance</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">16</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16A Audit committee financial expert</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Governance &#150; Committees of the Board &#150; The Audit Committee</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16B Code of Ethics</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Governance &#150; Introduction &#150; US Listing Requirements</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">53</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16C Principal Accountant Fees and Services</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note 4 &#147;Operating (loss)/profit&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">83</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate Governance &#150; Auditors</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">57</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16D Exemptions from the Listing Standards for<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit Committees   </font></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Corporate
    Governance &#150; Committees of the Board &#150; The Audit Committee</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">55</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="right" valign="bottom">&nbsp;</td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom"><div style="margin-left:4%; text-indent:-4%"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">16E Purchase of Equity Securities by the Issuer<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Affiliated Purchasers   </font></div></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Financial
       Position and Resources &#150; Liquidity and Capital Resources &#150; Treasury
    shares</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">41</font><font size="2">&nbsp;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><font size="2">&nbsp;</font></td>
   <td align="left" valign="bottom">&nbsp;</td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Note
    21 &#147;Transactions with equity shareholders&#148;</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">102</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">17</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial Statements</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Not applicable</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">18</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Financial Statements</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Consolidated Financial Statements</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">71</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="right" valign="bottom"><hr noshade size=1></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">19</font></b></td>
   <td align="left" valign="bottom"><b><font size=2 face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Exhibits</font></b></td>
   <td align="left" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">Filed with the SEC</font></td>
   <td align="right" valign="bottom"><font size=2 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">&#150;</font></td>
  </tr>
<tr>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
   <td align="left" valign="bottom"><hr noshade size=1></td>
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  </tr>
</table>

<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><FONT size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif"><b><font face="VodafoneRg-Bold,Arial,Helvetica,sans-serif">Vodafone
            Group Plc</font></b> Annual Report 2006</FONT></td>
    <td width="3%"><FONT color="#e82417" size=1 face="VodafoneRg-Regular,Arial,Helvetica,sans-serif">147</FONT></td>
  </tr>
</table>
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<p align="center"><b><font size="2" face="sans-serif"> SIGNATURE</font></b></p>
<p><font size="2" face="sans-serif">The registrant hereby certifies that it meets all of the requirements for
  filing on Form 20-F and that it has duly caused and authorized the undersigned
  to sign this transition report on its behalf.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="55%"><font size="2" face="sans-serif">VODAFONE GROUP PUBLIC LIMITED COMPANY </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="sans-serif">(Registrant)</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><p><font size="2" face="sans-serif">/s/ <u>Arun Sarin</u> </font></p></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="sans-serif">Arun Sarin</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="sans-serif">Chief Executive</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><p><font size="2" face="sans-serif">Dated: 14 June 2006</font><font size="2"></font></p></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="sans-serif"><a name="exindex"></a> </font></p>
<p><font face="sans-serif"><a href="#contents"><font size="2" face="serif">Back
        to Contents</font></a></font></p>
<p align="left"><b><font size="2" face="sans-serif">Index to Exhibits to Form
20-F for year ended 31 March 2006</font></b></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="5%"><a href="b831138ex1.htm"><font face="sans-serif"> <font size="2">1.</font></font></a></td>
    <td><a href="b831138ex1.htm"><font face="sans-serif"> <font size="2">Memorandum, as adopted on June
          13, 1984 and including all amendments made on July 28, 2000 and July
          26, 2005, and Articles of Association, as adopted on June 30, 1999
          and including all amendments made on July 25, 2001 and July 26, 2005,
          of the Company.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font size="2" face="sans-serif">2.</font></td>
    <td align="left"><font face="sans-serif"> <font size="2"> Indenture, dated
          as of February 10, 2000, between the Company and Citibank, N.A. as
          Trustee, including forms of debt securities (incorporated by reference
          to Exhibit 4(a) of Amendment No. 1 to the Company&#8217;s Registration
          Statement on Form F-3, dated November 24, 2000). (File No. 333-10762)).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-1.htm"><font face="sans-serif"><font face="sans-serif"><font size="2">4.1.</font></font></font></a></td>
    <td><a href="b831138ex4-1.htm"><font face="sans-serif"> <font size="2">Agreement for US $5,525,000,000
          5 year Revolving Credit Facility (subsequently increased by accession
          of further lenders to US$5,925,000,000), dated 24 June 2004, among,
          inter alia, the Company, ABN Amro Bank N.V.; Banco Bilbao Vizcaya Argentaria
          S.A. ; Bank of America, N.A.; Barclays Bank PLC; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas ; CALYON; Citibank, N.A.; Commerzbank Aktiengesellschaft,
          London Branch; Deutsche Bank AG; HSBC Bank plc; ING Bank, N.V.; JPMorgan
          Chase Bank; Lehman Brothers Bankhaus AG; Lloyds TSB Bank plc; Morgan
          Stanley Dean Witter Bank Limited and Morgan Stanley Bank; Mizuho Corporate
          Bank, Ltd.; National Australia Bank Limited ABN 12 004 044 937; Sumitomo
          Mitsui Banking Corporation Europe Limited; The Bank of Tokyo-Mitsubishi,
          Ltd.; The Royal Bank of Scotland Plc; UBS AG; WestLB AG; Banco Santander
          Central Hispano, S.A.; William Street Commitment Corporation; Banca
          Intesa SpA; KBC Bank NV; Standard Chartered Bank; TD Bank Europe Limited;
          and The Bank of New York with The Royal Bank of Scotland plc as Agent
          and US Swingline Agent<b>, as amended and restated on 24 June 2005
          by Supplemental Agreement </b>among, inter alia,the Company, ABN AMRO
          Bank N.V.<b>; </b>Banc of America Securities Limited; Banco Bilbao
          Vizcaya Argentaria S.A.; Banco Santander Central Hispano, S.A. London
          Branch; Barclays Capital; Bayerische Hypo-und Vereinsbank AG; BNP Paribas;
          Calyon; Citigroup Global Markets Limited; Commerzbank Aktiengesellschaft,
          London Branch; Deutsche Bank AG London; HSBC Bank Plc; ING Bank N.V.,
          London Branch; JPMorgan Chase Bank, N.A.; J.P. Morgan Plc; Lehman Commercial
          Paper Inc.; Llloyds TSB Bank Plc; Mizuho Corporate Bank, Ltd; Morgan
          Stanley Bank International Limited; National Australia Bank Limited
          ABN 12 004 044 937; Sumitomo Mitsui Banking Corporation Europe Limited;
          The Bank of Tokyo-Mitsubishi, Ltd.; The Royal Bank of Scotland Plc;
          UBS Limited; WestLB AG, London Branch; William Street Commitment Corporation;
          Banca Intesa SpA; KBC Bank NV; Standard Chartered Bank; TD Bank Europe
          Limited; The Bank of New York; ABN AMRO Bank N.V.; Banca Intesa SpA;
          Banco Bilbao Vizvcaya Argentaria S.A.; Banco Bilbao Vizvcaya Argentaria
          S.A. (New York Branch); Banco Santander Central Hispano, S.A. London
          Branch; Bank of America, N.A.; Barclays Bank Plc; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas (London Branch); BNP Paribas (acting through
          its New York Branch); Calyon; Citibank, N.A.; Commerzbank Aktiengesellschaft,
          London Branch; Commerzbank Aktiengesellschaft, New York Branch; Deutsche
          Bank AG London; Deutsche Bank AG New York; HSBC Bank Plc; ING Bank
          N.V., London Branch; JPMorgan Chase Bank, N.A.; KBC Bank NV; Lehman
          Commercial Paper Inc.; Lloyds TSB Bank Plc; Mizuho Corporate Bank,
          Ltd.; Morgan Stanley Bank; Morgan Stanley Bank International Limited;
          National Australia Bank Limited ABN 12 004 044 937; Standard Chartered
          Bank; Sumitomo Mitsui Banking Corporation Europe Limited; TD Bank Europe
          Limited; The Bank of New York; The Bank of Tokyo-Mitsubishi, Ltd.;
          The Royal Bank of Scotland Plc; The Royal Bank of Scotland Plc (New
          York Branch); UBS AG, London Branch; UBS AG, Stamford Branch; UBS Loan
          Finance LLC; WestLB AG, London Branch; WestLB AG, New York Branch;
          William Street Commitment Corporation; and The Royal Bank of Scotland
          Plc with The Royal Bank of Scotland Plc (New York Branch) as Agent
          and U.S. Swingline Agent.</font></font></a></td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p><font face="serif"><a href="#contents"><font size="2">Back to Contents</font></a></font></p>
<font face="serif"> </font>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-2.htm"><font face="sans-serif"> <font size="2">4.2.</font></font></a></td>
    <td><a href="b831138ex4-2.htm"><font face="sans-serif"> <font size="2">Agreement
            for US$4,675,000,000 7 year Revolving Credit Facility (subsequently
            increased by accession
          of further lenders to US$5,025,000,000), dated June 24, 2005, among,
          inter alia, the Company, Banc of America Securities Limited; Banca
          Intesa SpA; Banco Bilboa Vizcaya Argentaria S.A.; Banco Santander Central
          Hispano, S.A. London Branch; Barclays Capital; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas; Calyon; Citigroup Global Markets Limited;
          Deutsche Bank AG London; HSBC Bank Plc; ING Bank N.V., London Branch;
          J.P. Morgan Plc; Lehman Commercial Paper Inc., UK Branch; Lloyds TSB
          Bank Plc; Mizuho Corporate Bank, Ltd; Morgan Stanley Bank International
          Limited; National Australia Bank Limited ABN 12 004 044 937; The Bank
          of Tokyo-Mitsubishi, Ltd; The Royal Bank of Scotland Plc; UBS Limited;
          Unicredit Banca d&#8217;Impresa SpA; WestLB AG, London Branch; William
          Street Commitment Corporation; Commerzbank Aktiengesellschaft, Filiale
          D&uuml;sseldorf; KBC Bank NV; Standard Chartered Bank; TD Bank Europe
          Limited; The Bank of New York; Banca Intesa SpA; Banco Bilbao Vizcaya
          Argentaria S.A.; Banco Bilbao Vizcaya Argentaria S.A. (New York Branch);
          Banco Santander Central Hispano, S.A. London Branch; Bank of America,
          N.A., Barclays Bank Plc; Bayerische Hypo-und Vereinsbank AG; BNP Paribas
          (London Branch); BNP Paribas, New York Branch; Calyon; Citibank, N.A.;
          Commerzbank Aktiengesellschaft, Filiale D&uuml;sseldorf; Deustche Bank
          AG London; Deutsche Bank AG New York; HSBC Bank Plc; ING Bank N.V.,
          London Branch; JPMorgan Chase Bank, N.A.; KBC Bank NV; Lehman Commercial
          Paper Inc., UK Branch; Lloyds TSB Bank Plc; Mizuho Corporate Bank,
          Ltd.; Morgan Stanley Senior Funding, Inc.; Morgan Stanley Bank International
          Limited; National Australia Bank Limited ABN 12 004 044 937; Standard
          Chartered Bank; TD Bank Europe Limited; The Bank of New York; The Bank
          of Tokyo-Mitsubishi, Ltd.; The Royal Bank of Scotland Plc; The Royal
          Bank of Scotland Plc (New York Branch); UBS AG, London Branch; UBS
          Loan Finance LLC; Unicredit Banca d&#8217;Impresa SpA; WestLB AG, London
          Branch; WestLB AG, New York Branch; William Street Commitment Corporation;
          and The Royal Bank of Scotland plc with The Royal Bank of Scotland
          Plc (New York Branch) as Agent and US Swingline Agent.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.3.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Vodafone Group Long Term Incentive
          Plan (incorporated by reference to Exhibit 4.5 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.4.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Vodafone Group Short Term Incentive
          Plan (incorporated by reference to Exhibit 4.6 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.5.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Vodafone Group 1999 Long Term
          Stock Incentive Plan (incorporated by reference to Exhibit 4.7 to the
          Company&#8217;s Annual Report on Form 20-F for the financial year ended
          March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.6.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Vodafone Group 1998 Company Share
          Option Scheme (incorporated by reference to Exhibit 4.8 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.7.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Vodafone Group 1998 Executive
          Share Option Scheme (incorporated by reference to Exhibit 4.9 to the
          Company&#8217;s Annual Report on Form 20-F for the financial year ended
          March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-8.htm"><font face="sans-serif"> <font size="2">4.8.</font></font></a></td>
    <td><a href="b831138ex4-8.htm"><font face="sans-serif"> <font size="2">Vodafone Group 2005 Global Incentive
          Plan. </font></font></a></td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p><font face="serif"><a href="#contents"><font size="2">Back to Contents</font></a></font></p>
<font face="serif"> </font>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.9.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Agreement for Services with Lord
          MacLaurin of Knebworth (incorporated by reference to Exhibit 4.10 to
          the Company&#8217;s Annual Report on Form 20-F for the financial year
          ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.10.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Paul
          Hazen (incorporated by reference to Exhibit 4.15 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2003).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.11.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Service Contract of Arun Sarin
          (incorporated by reference to Exhibit 4.20 to the Company&#8217;s Annual
          Report on Form 20-F for the financial year ended March 31, 2003).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.12.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Service Contract of Julian Horn-Smith
          (incorporated by reference to Exhibit 4.10 to the Company&#8217;s Annual
          Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.13.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Service Contract of Peter Bamford
          (incorporated by reference to Exhibit 4.10 to the Company&#8217;s Annual
          Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.14.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Service Contract of Thomas Geitner
          (incorporated by reference to Exhibit 4.13 to the Company&#8217;s Annual
          Report on Form 20-F for the financial year ended March 31, 2005).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.15.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Service Contract of Kenneth Hydon
          (included in and incorporated by reference to Exhibit 4.10 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2001).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-16.htm"><font face="sans-serif"> <font size="2">4.16.</font></font></a></td>
    <td><a href="b831138ex4-16.htm"><font face="sans-serif"> <font size="2">Service Contract of Andrew Halford.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.17.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Sir
          John Bond (incorporated by reference to Exhibit 4.15 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2005).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.18.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Dr.
          Michael Boskin(incorporated by reference to Exhibit 4.9 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2003).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.19.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Professor
          Sir Alec Broers, now Lord Broers, (incorporated by reference to Exhibit
          4.10 to the Company&#8217;s Annual Report on Form 20-F for the financial
          year ended March 31, 2003; at a meeting of the Directors of the Company
          held on September 16, 2003, the term of office of Professor Sir Alec
          Broers was extended until December 31, 2006).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.20.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Dr.
          John Buchanan(incorporated by reference to Exhibit 4.11 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2003). </font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.21.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Penelope
          Hughes(incorporated by reference to Exhibit 4.17 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2003;
          at a meeting of the Directors of the Company held on September 16,
          2003, the term of office of Penelope Hughes was extended until August
          31, 2007).</font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-22.htm"><font face="sans-serif"> <font size="2">4.22.</font></font></a></td>
    <td><a href="b831138ex4-22.htm"><font face="sans-serif"> <font size="2">Letter of Appointment of Anne
          Lauvergeon.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.23.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Sir
          David Scholey (incorporated by reference to Exhibit 4.21 to the Company&#8217;s
          Annual Report on Form 20-F for the financial year ended March 31, 2003;
          at a meeting of the Directors of the Company held on September 16,
          2003, the term of office of Sir David Scholey was extended until the
          Annual General Meeting of the Company in 2005).</font></font></td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p><font face="sans-serif"><a href="#contents"><font size="2" face="serif">Back to Contents</font></a></font></p>
<font face="serif"> </font>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.24.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Jurgen
          Schrempp (incorporated by reference to Exhibit&nbsp;4.21 to the Company&#8217;s
          Annual Report on Form&nbsp;20-F for the financial year ended March&nbsp;31,
          2004). </font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">4.25.</font></font></td>
    <td><font face="sans-serif"> <font size="2">Letter of Appointment of Luc
          Vandevelde (incorporated by reference to Exhibit&nbsp;4.22 to the Company&#8217;s
          Annual Report on Form&nbsp;20-F for the financial year ended March&nbsp;31,
          2004). </font></font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-26.htm"><font face="sans-serif"> <font size="2">4.26.</font></font></a></td>
    <td><a href="b831138ex4-26.htm"><font face="sans-serif"> <font size="2">Letter of Appointment of Anthony
          Watson.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex4-27.htm"><font face="sans-serif"> <font size="2">4.27.</font></font></a></td>
    <td><a href="b831138ex4-27.htm"><font face="sans-serif"> <font size="2">Letter of Appointment of Philip
          Yea.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex7-1.htm"><font size="2" face="sans-serif">7.1</font></a></td>
    <td align="left"><a href="b831138ex7-1.htm"><font face="sans-serif"> <font size="2"> Computation of
          the ratio of earnings to fixed charges for the years ended 31 March
          2006 and 2005.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><a href="b831138ex7-2.htm"><font size="2" face="sans-serif">7.2</font></a></td>
    <td align="left"><a href="b831138ex7-2.htm"><font face="sans-serif"> <font size="2"> Computation
            of the ratio of earnings to fixed charges for the years ended 31
            March
          2004, 2003 and&nbsp;2002.</font></font></a></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%"><font face="sans-serif"> <font size="2">8.</font></font></td>
    <td><font face="sans-serif"> <font size="2">The list of the Company&#8217;s
          subsidiaries is incorporated by reference to note 12 to the Consolidated
          Financial Statements included in the Annual Report. </font></font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><a href="b831138ex12.htm"><font size="2" face="sans-serif" align="left">12.</font></a></td>
    <td><a href="b831138ex12.htm"><font size="2" face="sans-serif" align="left"> Rule
          13a &#150; 14(a)
        Certifications.</font></a></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><a href="b831138ex13.htm"><font size="2" face="sans-serif" align="left">13.</font></a></td>
    <td><a href="b831138ex13.htm"><font size="2" face="sans-serif" align="left">Rule
    13a &#150; 14(b) Certifications.</font></a></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><a href="b831138ex15.htm"><font size="2" face="sans-serif" align="left">15.</font></a></td>
    <td><a href="b831138ex15.htm"><font size="2" face="sans-serif" align="left">Consent
          of Deloitte &amp; Touche
        LLP.</font></a></td>
  </tr>
</table>
<p align="left">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
<p>&nbsp;</p>
</body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "b831138-20f.htm", "secsgml_size_bytes": 4016780}]
{"company-data": {"conformed-name": "VODAFONE GROUP PUBLIC LTD CO", "cik": "0000839923", "assigned-sic": "4812", "irs-number": "000000000", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "001-10086", "film-number": "06904303"}, "business-address": {"street1": "VODAFONE HOUSE", "street2": "THE CONNECTION", "city": "NEWBURY, BERKSHIRE", "state": "X0", "zip": "RG14 2FN", "phone": "011-44-1635-33251"}, "mail-address": {"street1": "VODAFONE HOUSE", "street2": "THE CONNECTION", "city": "NEWBURY, BERKSHIRE", "state": "X0", "zip": "RG14 2FN"}, "former-company": [{"former-conformed-name": "VODAFONE GROUP PUBLIC LIMITED CO", "date-changed": "20020807"}, {"former-conformed-name": "VODAFONE AIRTOUCH PUBLIC LIMITED CO", "date-changed": "19990629"}, {"former-conformed-name": "VODAFONE GROUP PUBLIC LIMITED CO", "date-changed": "19960514"}]}
Prepared and filed by St Ives Financial
SECURITIES
        AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 20-F
REGISTRATION STATEMENT
        PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT
        OF 1934
OR
ANNUAL REPORT PURSUANT
        TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended:
March 31, 2006
OR
TRANSITION REPORT PURSUANT
        TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from:
to
OR
SHELL COMPANY REPORT PURSUANT
        TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report:
Commission file number:
1-10086
VODAFONE
        GROUP PUBLIC LIMITED COMPANY
(formerly VODAFONE AIRTOUCH PUBLIC LIMITED COMPANY)
(Exact name of Registrant as specified in its charter)
England
(Jurisdiction of incorporation or organization)
Vodafone House, The Connection,
      Newbury, Berkshire RG14 2FN, England
(Address of principal executive offices)
Securities registered or to
    be registered pursuant to Section 12(b) of the Act:
Title
              of each class
Name
            of each exchange
on which registered
Ordinary shares of $0.10
        each
New York Stock Exchange
*
*
Listed,
          not for trading, but only in connection with the registration of American
          Depositary Shares, pursuant to the requirements of the Securities and
          Exchange Commission.
Securities registered or to be registered pursuant to Section 12(g) of the
      Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d)
  of the Act:
None
Indicate the number of
        outstanding shares of each of the issuer's classes of capital or
        common stock as of the close of the period covered by the annual report.
Ordinary Shares of $0.10
    each
60,118,575,455
7% Cumulative
        Fixed Rate Shares of £1 each
50,000
Indicate by check mark
        if the registrant is a well-known seasoned issuer, as defined in Rule
        405 of the Securities Act
Yes
No
If this report is an annual
        or transition report, indicate by check mark if the registrant is not
        required to file reports pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934.
Yes
No
Indicate by check mark
        whether the registrant (1) has filed all reports required to be filed
        by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
        the preceding 12 months (or for such shorter period that the registrant
        was required to file such reports), and (2) has been subject to such
        filing requirements for the past 90 days:
Yes
No
Indicate by check mark
        whether the registrant is a large accelerated filer, an accelerated filer,
        or a non-accelerated filer. See definition of "accelerated filer
        and large accelerated filer" in Rule 12b-2 of the Exchange Act.
        (Check one):
Large accelerated filer
Accelerated
        filer
Non-accelerated
        filer
Indicate by check mark
        which financial statements item the registrant has elected to follow:
Item 17
Item
        18
If this is an annual report, indicate
        by check mark whether the registrant is a shell company (as defined in
        Rule 12b-2 of the Exchange Act):
Yes
No
To
      enrich our customers'
lives through the unique,
expanding power of mobile
communication.
This constitutes the Annual Report on Form 20-F (the "20-F")
      of Vodafone Group Plc (the "Company") in accordance with the
      requirements of the US Securities and Exchange Commission (the "SEC")
      and is dated 14 June 2006. This document contains the information set out
      within the Company's Annual Report in accordance with International
      Financial Reporting Standards ("IFRS") and with those parts
      of the Companies Act 1985 applicable to companies reporting under IFRS,
      dated 30 May 2006, as updated or supplemented at the time of filing of
      the 20-F with the SEC, which may be later amended if necessary. References
      to IFRS refer to the application of International Financial Reporting Standards,
      including International Accounting Standards ("IAS") and interpretations
      issued by the International Accounting Standards Board ("IASB")
      and its committees, and as interpreted by any regulatory bodies applicable
      to the Group and adopted for use in the European Union ("EU").
      Financial information for the year ended 31 March 2005, presented as comparative
      figures in this report, has been restated from UK GAAP in effect at 31
      March 2004 in accordance with IFRS. The content of the Group's website
      (www.vodafone.com) should not be considered to form part of this Annual
      Report or the Company's Annual Report on Form 20-F.
References
      to the "Group" or "Vodafone" are references to the Company
      and its subsidiary undertakings and, where the context requires, its interests
      in joint ventures and associated undertakings.
In the
      discussion of the Group's reported financial position and results for
      the year ended 31 March 2006, information in addition to that contained
      within the Consolidated Financial Statements is presented on the basis that
      it provides readers with additional financial information regularly reviewed
      by management. This information is provided to assist investor assessment
    of the Group's performance from period to period. However,
the
      additional information presented is not uniformly defined by all companies
      in the Group's industry. Accordingly, it may not be comparable with
      similarly titled measures and disclosures by other companies. Definitions
      of the terms presented are shown on page 49.
In presenting
      and discussing the Group's reported financial position, operating results
      and cash flows, certain information is derived from amounts calculated in
      accordance with IFRS but this information is not itself an expressly permitted
      GAAP measure. Such non-GAAP measures should not be viewed in isolation as
      an alternative to the equivalent GAAP measure. An explanation as to the
      use of these measures and reconciliations to their nearest equivalent GAAP
      measure can be found on pages 47 to 48.
The Report
      of the Directors, incorporating the Business Review, covers pages 6 to 70
      of this Annual Report.
This Annual
      Report 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 business management and strategy,
      plans and objectives for the Group. For further details, please see "Cautionary
      Statement Regarding Forward-Looking Statements" and "Outlook and
      Risk Factors" for a discussion of the risks associated with these statements.
Vodafone,
      Vodafone live!, Vodafone Mobile Connect, Vodafone Wireless Office, Vodafone
      Simply, Vodafone Passport, Vodafone Zuhause, Vodafone Casa, Oficina Vodafone,
      Stop the Clock and Vodafone Radio DJ are trademarks of the Vodafone Group.
      Other product and company names mentioned herein may be the trademarks of
      their respective owners.
Highlights
      for the Year
Financial
      performance:
•
Group
      revenue of £29.4 billion from continuing operations. Mobile
telecommunications
      revenue increased to £28.1 billion, representing
growth of 9.3%
•
Loss
      before taxation for the year was £14.9 billion after impairment losses
of £23.5 billion
•
Free
      cash flow of £6.4 billion, and net cash inflow from operating activities,
after net taxation paid of £1.7 billion, up 10.3% to £10.2 billion
      from
continuing operations
Operational
      highlights:
•
Net
      proportionate customer additions of 21.5 million in the year
•
Closing
      proportionate customer base of 170.6 million, with organic growth
of 14.9%
      in the year
•
Non-messaging
      data revenue grew by 61.2% to £0.8 billion, with organic
growth of
      60.4%
•
Mobile
      voice usage increased by 24.6% to 178.3 billion minutes, with organic
growth
      of 18.9%
Increasing
      returns to shareholders:
•
Total
      dividends per share increased by 49%, to 6.07 pence, with a final
dividend
      per share of 3.87 pence, giving a dividend pay out ratio of 60% on
underlying
      earnings per share and a total pay out of £3.7 billion for the
financial
      year
•
£6.5
      billion expended on the share purchase programme in the 2006
financial year,
      reducing shares in issue by 7.5%
•
£9.0
      billion to be returned to shareholders in the 2007 financial year via
"
      B"
      share arrangement, including an additional £3 billion announced on
30
May
      2006
•
Total
      returns to shareholders announced over the year of £19.2 billion
Highlights
Financial
        Highlights
2
Group
        at a Glance
4
Strategy
Chairman's
        Statement
6
Chief
        Executive's Review
8
Business
Business
        Overview
12
Regulation
21
Performance
Introduction
25
Critical
        Accounting Estimates
26
Key
        Performance Indicators
29
Operating
        Results
30
Financial
        Position and Resources
38
Risk
        Factors, Trends and Outlook
43
Cautionary
        Statement Regarding
Forward-Looking
        Statements
46
Non-GAAP
        Information
47
Definition
        of Terms
49
Governance
Board
        of Directors
and
        Group Management
50
Corporate
        Governance
53
Employees
58
Corporate
        Responsibility
and
        Environmental Issues
59
Board's
        Report to Shareholders
on
        Directors' Remuneration
61
Directors' Statement
        of Responsibility
70
Financials
Consolidated
        Financial Statements
71
Report
        of Independent Registered
Public
        Accounting Firm on the
Consolidated
        Financial Statements
131
Company
        Financial Statements
of
        Vodafone Group Plc
132
Report
        of Independent Registered
Public
        Accounting Firm on the
Company
        Financial Statements
139
Shareholder
        information
Investor
        Information
140
Form
        20-F Cross Reference Guide
146
Back to Contents
Financial Highlights
The selected financial data set out on the following pages is derived from the
Consolidated
Financial Statements of the Company on pages 71 to 130 and as such should be
read in conjunction with them. Certain trends within the financial data presented
below have been impacted by business acquisitions and disposals, the most significant
of which are described in "Business Overview – History and Development of the Company".
The Consolidated Financial
Statements are prepared in accordance with IFRS, on the basis set out in note
1 to the Consolidated Financial Statements, which differ in certain significant
respects from US GAAP. For further details, see note 38 to the Consolidated Financial
Statements, "US GAAP information". Solely for convenience, amounts represented below in dollars have been translated at $1.7393: £1,
the Noon Buying Rate on 31 March 2006.
At/year
    ended 31 March
2006
2006
2005
2004
2003
2002
$m
£m
£m
£m
£m
£m
Consolidated Income Statement Data
IFRS
Revenue
51,048
29,350
26,678
Operating (loss)/profit
(24,496
)
(14,084
)
7,878
Adjusted operating profit (Non-GAAP measure)
(1)
16,348
9,399
8,353
(Loss)/profit before taxation
(25,833
)
(14,853
)
7,285
(Loss)/profit for the financial year from continuing operations
(29,973
)
(17,233
)
5,416
US GAAP
Revenue
41,319
23,756
21,370
19,637
15,487
13,447
Net loss
(2)(3)
(23,081
)
(13,270
)
(13,752
)
(8,105
)
(9,072
)
(16,769
)
Consolidated Cash Flow Data
(4)
IFRS
Net cash flows from operating activities
17,723
10,190
9,240
Net cash flows from investing activities
(11,573
)
(6,654
)
(4,112
)
Net cash flows from financing activities
(7,896
)
(4,540
)
(7,242
)
Free cash flow (Non-GAAP measure)
(1)
11,163
6,418
6,592
Consolidated Balance Sheet Data
IFRS
Total assets
220,435
126,738
147,197
Total equity
148,383
85,312
113,648
Total equity shareholders' funds
148,580
85,425
113,800
Total liabilities
72,052
41,426
33,549
US GAAP
Shareholders' equity
151,291
86,984
107,295
129,141
140,580
141,016
2
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Highlights
At/year
    ended 31 March
2006
2006
2005
2004
2003
2002
Earnings
    Per Share ("EPS")
(5)
Weighted average number of shares (millions)
– Basic
62,607
66,196
68,096
68,155
67,961
– Diluted
62,607
66,427
68,096
68,155
67,961
IFRS
Basic (loss)/earnings per ordinary share
– Continuing
(48.11
)¢
(27.66
)p
8.12
p
– Discontinued
(12.78
)¢
(7.35
)p
1.56
p
Diluted (loss)/earnings per ordinary share
– Continuing
(48.11
)¢
(27.66
)p
8.09
p
– Discontinued
(12.78
)¢
(7.35
)p
1.56
p
Basic (loss)/earnings per ADS
– Continuing
(481.1
)¢
(276.6
)p
81.2
p
– Discontinued
(127.8
)¢
(73.5
)p
15.6
p
Diluted (loss)/earnings per ADS
– Continuing
(481.1
)¢
(276.6
)p
80.9
p
– Discontinued
(127.8
)¢
(73.5
)p
15.6
p
US GAAP
(2)(3)
Basic and diluted loss per ordinary share
(36.87
)¢
(21.20
)p
(20.77
)p
(11.90
)p
(13.31
)p
(24.67
)p
Basic and diluted loss per ADS
(368.7
)¢
(212.0
)p
(207.7
)p
(119.0
)p
(133.1
)p
(246.7
)p
Cash Dividends
(5)(6)
Amount per ordinary share
10.56
¢
6.07
p
4.07
p
2.0315
p
1.6929
p
1.4721
p
Amount per ADS
105.6
¢
60.7
p
40.7
p
20.315
p
16.929
p
14.721
p
Other Data
IFRS
Ratio of earnings to fixed charges
(7)
–
–
7.0
Deficit
$(28,733
)m
£(16,520
)m
–
US GAAP
Ratio of earnings to fixed charges
(7)
–
–
–
–
–
–
Deficit
(8)
$(24,133
)m
£(13,875
)m
£(9,756
)
m
£(9,059
)m
£(8,436
)m
£(14,425
)m
Notes:
(1)
Refer to "Non-GAAP Information" on pages 47 to 48 for a reconciliation of this non-GAAP measure to the most comparable GAAP measure and a discussion of
this measure.
(2)
2005 net loss includes the cumulative effect of accounting changes related to intangible assets and post employment benefits that increase net loss by £6,372
million or 9.63p per ordinary share. Net loss and shareholders' equity for 2005, 2004, 2003 and 2002 have been restated to give effect to the modified retrospective adoption of SFAS No. 123 (Revised 2004). See note 38 to the Consolidated
Financial Statements for further details on these changes in accounting policy.
(3)
2002 net loss includes the cumulative effect of accounting changes related to derivative financial instruments reducing net loss by £17 million or 0.02p per
ordinary share.
(4)
Amounts reported refer to continuing operations.
(5)
See note 8 to the Consolidated Financial Statements, "(Loss)/earnings per share". Earnings per American Depository Share ("ADS") is calculated
by multiplying earnings per ordinary share by ten, the number of ordinary shares per ADS. Dividend per ADS is calculated on the same basis.
(6)
The final dividend for the year ended 31 March 2006 was proposed by the directors on 30 May 2006.
(7)
For the purposes of calculating these ratios, earnings consist of profit before tax adjusted for fixed charges, dividend income from associated undertakings, share
of profits and losses from associated undertakings and profits and losses on ordinary activities before taxation from discontinued operations. Fixed charges comprise one-third of payments under operating leases, representing the interest element of
these payments, interest payable and similar charges and preferred share dividends.
(8)
The deficits for the 2002, 2003 and 2004 financial years are presented on the same basis as the Form 20-F for the year ended 31 March 2004. These deficits have not
been restated for the effect of discontinued operations, because the UK GAAP information, which forms the basis of the US GAAP information presented, has not been restated. Even if any such adjustments were made, it is expected that the ratio of
earnings to fixed charges would still show a deficit.
Vodafone
            Group Plc
Annual Report 2006
3
Back to Contents
Group at a Glance
Vodafone is the world's leading mobile
telecommunications company
with
mobile operations in 26
countries
around the world and Partner
Network
agreements
    in a further 32 countries.
Germany
Italy
Spain
Closing
    proportionate
customers
('000)
29,191
18,490
13,521
Average
    proportionate
customer growth
(%)
8.4%
6.8%
18.5%
3G devices
('000)
2,025
2,250
902
Average
monthly
ARPU
€23.3
€28.5
€35.6
Non-voice
    revenue
as a percentage of
service revenue (%)
20.2%
16.7%
14.4%
Revenue
(£m)
5,754
4,363
3,995
Operating
(loss)/profit
(1)
(£m)
(17,904)
(1,928)
968
Total
    assets
(£m)
25,029
20,310
13,039
Employees
(000s)
10,124
7,123
4,052
Note:
(1)
The
        operating (loss)/profit in Germany, Italy and Other Mobile Operations
        is stated after impairment
charges of £19,400 million, £3,600 million and £515 million,
respectively.
4
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Highlights
UK
US
Other
    Mobile Operations
Total
    Mobile
16.304
23,530
69,535
170,571
7.8%
17.0%
34.0%
18.8%
1,033
–
1,511
7,721
£24.0
$51.4
–
–
20.3%
8.9%
14.3%
17.0%
5,048
–
9,250
28,137
698
1,732
2,008
(14,203)
9,486
17,898
23,937
111,722
10,620
–
22,895
57,442
Vodafone
      Group Plc
Annual
      Report 2006
5
Back to Contents
Chairman's
      Statement
Lord
      MacLaurin of Knebworth, DL
It
    has been my privilege
to
    be the Chairman of a
company that has proved
to be one of the outstanding international success stories
of the last decade.
My last year as Chairman of Vodafone has been a watershed in the history of your Company. We have been undergoing significant change whilst operating in the most challenging market
environment the telecommunications sector has seen. Nevertheless, our ability to deliver good growth in the face of increasing competition reflects the unique characteristics of our business, compared to many other mobile operators, particularly the
benefits derived from our increasing exposure to faster-growing markets and the opportunity to generate further benefits from our scale.
We maintained strong customer growth across many of our markets and grew our proportionate mobile customer base to over 170 million, representing organic growth of 15% since last
year. Importantly, we achieved our 10 million 3G target, which included Japan, during March, which was ahead of plan.
Over the year, we have announced total returns to shareholders of £19.2 billion. We have purchased over 4.8 billion shares in the Company at a cost of £6.5 billion and are
paying out £3.7 billion in dividends for the year, including the proposed final dividend of 3.87 pence per share. We are also returning £9.0 billion to shareholders, including £6.0 billion following the sale of our Japanese
business. Full details are in the documentation accompanying this Report.
When I
    became Chairman in July 1998 we had fewer than 6 million customers in
12
    countries producing some £2.5 billion of turnover. In the summer of
    1999, we acquired AirTouch of the US, followed in 2000 by the acquisition
    of Mannesmann in Germany. This was a period of huge expansion which formed
    the basis of the transformation of Vodafone into the world's leading
    mobile telecommunications group that has equity interests in 26 countries
    across five continents with over 170 million proportionate customers worldwide,
    as well as 32 partner networks, generating turnover this year from our ongoing
    businesses of over £29 billion. Not only have we extended our geographic
    reach but we have also transformed our industry by becoming a leader in innovation,
    introducing groundbreaking services such as Vodafone live! with 3G, thereby
    setting standards for the mobile industry as a whole. It has been a remarkable
    achievement.
6
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Strategy
However,
  the Group now faces many challenges, particularly of competition, regulation
  and new technology. During the year, we conducted, in the face of these challenges,
  a review of the future growth prospects for the Group and our analysis indicated
  a lower view of growth, particularly in the medium to long term, and led to
  an impairment of the Group's goodwill by £23.5 billion, the majority
  of which is attributable to Vodafone Germany. This charge does not impact this
  year's reported cash flows or distributable reserves, out of which we are
  making returns to shareholders.
However,
  in this challenging market the Chief Executive has spent a great deal of time
  reviewing the management structure and future planning required to take the
  Company forward. In April he announced his new management team and in May they
  produced a clear forward-looking strategy. I believe that through this statement
  the Chief Executive sets out a clear vision for the future. I congratulate him
  on these changes and wish him and his impressive team well.
It has been
  my privilege to be the Chairman of a company that has proved to be one of the
  outstanding international success stories of the last decade. The development
  and expansion of the Group has been made possible by the excellence of the management
  team whose flair and vision has enabled us to identify international opportunities
  for profitable growth while at the same time introducing technological advances
  to enhance the mobile experience for our customers.
It was announced
  earlier this year that Sir Julian Horn-Smith had decided to retire from the
  Board following the Annual General Meeting in July. Julian has been with Vodafone
  for 22 years and a Board member for 10 years. He has had an outstanding career,
  being a major contributor to the creation of the UK network and subsequently
  leading the early development of our international presence. More recently he
  was Group Chief Operating Officer and then Deputy Chief Executive, with responsibility
  for our affiliates and business development. I am sure all shareholders will
  join with me in wishing him well for the future.
Peter Bamford,
  Chief Marketing Officer, who left the Company in early April, was instrumental
  in developing our brand both within the UK and internationally and developing
  a number of major initiatives, including the launch of Vodafone live! with 3G.
  I wish him well and thank him for his contribution to the success of the Company.
At the AGM,
  we say farewell to Paul Hazen, our Deputy Chairman, who has served with distinction
  as a non-executive director since 1999. We also say goodbye to Penny Hughes,
  a fine non-executive director for eight years and who was an exceptional Remuneration
  Committee Chair for five years. Her contribution cannot be overstated. Paul
  and Penny leave with our best wishes. Taking Paul's place as Deputy Chairman
  and senior independent director will be John Buchanan, who has been a non-executive
  director since April 2003, shortly after his retirement from BP p.l.c. I am
  sure that John will discharge his new duties very effectively.
During the
  year, we welcomed two new non-executive directors to the Board. In September,
  Philip Yea, Chief Executive Officer of 3i Group plc, was appointed and he was
  joined in November by Anne Lauvergeon, the Chairman of the Executive Board of
  AREVA, the leading French energy company. On 1 May, we welcomed Anthony Watson
  to the Board. Until his recent retirement, he was Chief Executive of Hermes
  Pensions Management Limited. I know that their collective experience in their
  different areas of business will be of great benefit to the Company.
Finally
  I come to my own retirement. As I have said, it has been a great privilege for
  me to have been Chairman of a truly outstanding British company. I have, however,
  been particularly saddened this year by the nature of some of the media coverage
  and particularly by the suggestion of boardroom splits. There are no factions
  within the Board and any claim that your Board is not united is unfounded. I
  leave with the knowledge that Vodafone, which is now very different to the company
  which I first chaired, is well placed to continue to enjoy an exciting and profitable
  future. I wish Sir John Bond, my successor, Arun Sarin, your Chief Executive,
  and everyone at Vodafone the very best for the future and thank you all for
  your support during the last eight years as your Chairman.
Lord
    MacLaurin of Knebworth, DL
Chairman
Vodafone
      Group Plc
Annual
      Report 2006
7
Back to Contents
Chief Executive's Review
Arun Sarin
We delivered another set
of robust financial and
operational results amidst a
more competitive landscape
and announced returns to
shareholders over the year
of £19.2 billion.
Review of the year
We have delivered another year of robust financial performance against a backdrop of increasing competition and regulation, meeting our expectations for revenue, EBITDA margin and
free cash flow.
Proportionate customer growth was strong with nearly 22 million organic net additions in the year taking the closing proportionate customer base to over 170 million across 26
countries. Our unrivalled presence provides the platform for the next stage of our strategy.
These results have
enabled us to significantly increase returns to shareholders. We have increased
dividends per share by 49% to 6.07 pence, purchased £6.5 billion of our shares
and announced a special distribution of £9.0 billion.
Financial review
Statutory
revenue
increased by 10% to £29.4 billion, with over 9% growth in our mobile operations.
Excluding the net benefit from acquisitions, disposals and exchange rate movements,
we achieved organic revenue growth of 7% in mobile and 8% for the Group as a
whole. Strong performances in Spain and several of our emerging markets, including
South Africa, Egypt and Romania, helped offset lower growth this year in
several of our more established markets. Notwithstanding this lower growth, we
outperformed substantially all of our principal competitors in our major markets
on revenue and EBITDA growth.
Our focus on profitability delivered an 11% organic increase in adjusted operating profit, with 13% growth in total. The competitive environment led to a necessary increase in net
customer acquisition and retention costs but this was mitigated by our ongoing success in delivering operating efficiencies. A key part of this growth has been the strong overall performance from our associates, increasing by over 20% this year, and
in particular from Verizon Wireless in the US, growing by nearly 28% as it consolidated its market leadership.
Capital expenditure
on fixed assets was £4.0 billion as we continue to invest in broadening our 3G presence. Free cash flow of £6.4 billion was slightly lower than last
year as expected, with increases in capital expenditure and lower dividends from Verizon Wireless offsetting an increase of £1.0
billion in net cash flow from operating activities.
Operational highlights
We have been focused on six strategic goals, including delighting our customers and leveraging scale and scope.
A core part of delighting our customers is our 3G offering. When we launched 3G late in 2004, we targeted 10 million consumers by the end of March 2006, including Japan. We reached
this during March, shortly before we agreed to sell our Japanese operation.
8
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Strategy
We
        have updated our strategy
to reflect our changing environment
3G brings an enhanced mobile experience to our customers, who want more speed, greater personalisation and richer content, and provides the platform for our future growth. For
consumers, we launched mobile TV capability during the year and will further enhance our music offering during 2006 with the launch of Vodafone Radio DJ, a personalised, interactive radio service streamed to both 3G phones and PCs.
For our business customers, we increased the number of mobile email solutions and range of email devices available. 3G broadband through HSDPA technology was launched in the year
offering an enhanced data experience through greater speeds than 3G and faster access to the network. This will improve our already successful Vodafone Mobile Connect offering for laptop users, who have more choice with mobile capability now being
built in to the laptop.
Another key part of delighting our customers is measuring customer satisfaction and brand preference. With rising customer expectations and a tougher competitive environment, we are
pleased that we continue to outperform our principal competitors in terms of customer satisfaction and that customers continue to show preference for the Vodafone brand.
The second strategic area of focus has been leveraging our scale and scope which delivers benefits through our One Vodafone programme, details of which we set out last year.
We are beginning to deliver real benefits in network supply chain management, as standardised designs lead to a reduced number of vendors and better terms. Our shared service
platforms, which centrally host services such as Vodafone live!, are also now established.
Our strategic goals are ultimately designed to deliver shareholder value. With respect to Japan, given the relative competitive position of the business there, the reduced prospects
for superior long term returns and an attractive offer from SoftBank, we decided to sell our 97.7% stake based on a value for the business of £8.9 billion. The sale completed in April, with Vodafone receiving £6.9 billion in cash,
£6.0 billion of which we are returning to shareholders as part of the £9.0 billion special distribution.
Rapidly changing environment
Overall, we have performed strongly during the last year, meeting our expectations and delivering on our strategic objectives. We have continued to outperform our principal
competitors on revenue and EBITDA growth, as well as customer satisfaction. We have established a strong brand around our customer base and increased returns to shareholders significantly. However, our marketplace is changing and we need to change
to ensure we can leverage our unique position and continue to outperform our competitors.
There are several key drivers to the changing environment. Competition is increasing not only from established mobile operators but also from new entrants, particularly mobile virtual
network operators (MVNOs). There are also new types of competitor. Established fixed line operators are increasingly combining fixed and mobile service offerings. In addition, internet based companies are extending their services to include
telecommunications. All of these factors are putting pressure on pricing.
The regulatory environment also remains challenging, with continued regulator-imposed rate reductions on incoming calls across many markets, ongoing pressure to provide access to
MVNOs to our networks and a high level of focus on the costs of roaming.
Developments in technology also mean that our customers have far more choice and have changing communication needs, but at the same time they demand simplicity and value for money. In
addition to the core benefits of mobility, customers want greater personalisation, faster data speed and richer applications through services centred on the home and the office.
Finally, our growth historically has principally come from developed markets, particularly in Europe. With average penetration now around 100%, these markets are maturing and
delivering lower growth. Whilst growth in these markets has slowed, significant growth is now coming from emerging markets where average penetration is below 30%. This is creating greater diversity between our markets than previously. Transactions
over the last year in Turkey, South Africa, India and Romania have combined with existing operations in markets such as Egypt to provide us now with greater exposure to this growth potential.
Developing our strategy
These factors require our strategy to evolve so that we can continue to maintain our strong performance and deliver value to customers and shareholders. We have established five key
strategic objectives:
•
In Europe, to focus on both cost reduction and revenue stimulation;
•
To deliver strong growth in emerging markets;
•
To satisfy our customer needs and extend our current mobile only offering by innovating and delivering total communications solutions;
•
To actively manage our portfolio to maximise returns; and
•
To align our financial policies regarding capital structure and shareholder returns to support our strategy.
Vodafone
            Group Plc
Annual Report 2006
9
Back to Contents
Chief
Executive's Review
continued
In order to deliver on these objectives, we have reorganised ourselves into three key business units.
In our European businesses, where competition is most intense, we will be focused on leveraging our regional scale to deliver cost reduction and revenue stimulation.
The principal focus in the Eastern Europe, Middle East, Africa, Asia Pacific and Affiliates (EMAPA) region is to deliver strong growth from our businesses in emerging markets.
The new objective of our third business unit, New Businesses, is to enable us to serve the total communications needs of our customers by taking advantage of evolving technology and
new opportunities to deliver new services.
Cost reduction
Our primary objective here is to leverage our regional scale and reduce our cost structure in Europe through several approaches in order to maintain our competitiveness.
We will outsource further, particularly for IT development of billing and customer management systems, as a key means to reduce our costs. We will also continue to drive scale
benefits, either at a global level, in areas such as network supply chain management as we achieve greater standardisation across the Group, or regionally, such as through the establishment of regional data centres to support our European
operations. As the size of the Group evolves, we need to ensure the appropriate balance between local and group, particularly in respect of central functions, and this is expected to result in over 400 fewer group positions.
Revenue stimulation
In Europe, our customers use their mobiles on average for only four minutes a day and approximately two-thirds of voice traffic continues to travel across fixed lines. We therefore
aim to stimulate additional voice usage and substitute fixed line usage for mobile in a way that enhances both customer value and revenue.
For our consumers, we will seek to enhance revenues by continuing to deliver innovative bundles and tariffs to stimulate usage, building on success in areas such as 3G bundles,
targeted promotions, family plans that focus on community groups and roaming through Vodafone Passport.
We are already targeting fixed to mobile substitution in the home through offerings such as Vodafone Zuhause in Germany and Vodafone Casa in Italy and aim to target office
communications by building on our success in business with leading edge services, such as Oficina Vodafone in Spain, and applications through the benefits of broadband.
Deliver strong growth
in emerging markets
A source of growth is through emerging markets. Our focus here is to build on our strong track record of creating value in emerging markets, having delivered strong performances over
time in markets such as Egypt and South Africa. Our aim is to outperform not only our competitors but also our acquisition business plans. For example, since we achieved control in Romania last year, the business has performed strongly and ahead of
our original expectations.
We will seek selective opportunities to increase our emerging markets footprint as well as taking opportunities to increase our stakes in existing markets, with a view to gaining
control where possible over time.
Delivering our customers' total
communication needs
Customers have access to new technologies, devices and services. As a complement to mobility, they want Vodafone to provide a number of new services within the home and the
office.
We will extend our reach into the home and the office to deliver richer business applications and integrated fixed and mobile services, such as higher speed internet access. We will
use technologies such as HSDPA, DSL and WiFi to do this. Later this year, we will be enhancing our Vodafone Zuhause offering to incorporate DSL.
Developments in technology will also enable us to provide integrated mobile and PC offerings to give customers a consistent experience whether they are at home or on the move, with
core services such as VOIP and instant messaging. We also aim to extend our business model to generate revenue from advertising in ways that customers find attractive.
We will continue to pursue a mobile centric approach, focusing on the core benefits to customers of mobility and personalisation, and will resell fixed line technologies only
according to customer needs.
Actively managing our portfolio
We seek to invest only where we can generate superior returns for our shareholders in markets that offer a strong local position, with focus on specific geographic regions. It is our
policy to apply strict investment criteria to ensure that transactions yield a return above the cost of capital within three to five years and overall create substantial value for our shareholders. Equally, we will consider exiting businesses which
do not meet our performance requirements or provide an opportunity to create shareholder value.
There has been much speculation about our position in the US. Verizon Wireless is the market leader on nearly all key metrics and has significant local and regional scale, with over
50 million customers. We will always consider the most appropriate way to deliver shareholder value. However, we expect continued strong growth in the US and are therefore happy to remain with our existing stake.
10
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Strategy
We
        have a significant opportunity to deliver
value to both our customers and shareholders.
Financial implications
Our One Vodafone programme, which primarily has been focused on our mature mobile markets in Europe, delivers efficiencies in operating costs, being payroll and other operating
expenses, and in capital expenditures. We have previously targeted keeping these total costs broadly stable between the 2004 and 2008 financial years, with operating costs expected to rise at a lower rate than revenue. Through our new strategic
objectives, we now expect underlying operating costs alone to be broadly stable between the 2006 and 2008 financial years for the total of our European operations and central costs.
On the same basis, we continue to target expenditures on fixed assets to be 10% of revenue for the 2008 financial year. We also continue to expect at least 1% additional revenue
market share between the 2005 and 2008 financial years, measured against our established principal competitors in Germany, Italy, Spain and the UK.
Our strategic changes also have implications on returns to shareholders and our capital structure. We have previously indicated an intention to pay out approximately 50% of adjusted
earnings per share for the 2007 financial year onwards. We now consider it appropriate to target a 60% payout ratio, with effect for the full 2006 financial year, with a view to growing the dividend per share in line with underlying earnings per
share thereafter. Dividends per share have, therefore, increased by 49% to 6.07 pence for the year.
As we enter a new
phase in our development, we believe that the most appropriate capital structure,
which meets the needs of both the business and shareholders, is one that reflects
a higher level of gearing. The incremental borrowing capacity this provides enables
an additional return of £3.0 billion to shareholders, which will be combined with the £6.0
billion return of cash from the sale of Japan in early August. As a result, we
do not currently plan any further share purchases or other one-off returns to
shareholders.
This £9.0 billion one-off return, together with the £6.5 billion share purchase programme completed during the last year and £3.7 billion of dividends, gives an
overall return to shareholders of £19.2 billion.
Prospects
for the year ahead
While
we are delivering on cost reduction, revenue stimulation and emerging market
growth in the shorter
term, the potential benefits from serving our customers' total
communications needs will materialise over a longer timeframe.
For the year ahead, we expect operating conditions to remain challenging, with a continued intense competitive environment and further regulatory pressure, but nevertheless see
continued growth in Group revenue. We are anticipating higher customer investment, pricing pressures and further termination rate reductions to impact growth in adjusted operating profit, however initiatives to deliver further cost efficiencies are
expected to mitigate this effect.
Capital expenditure
on fixed assets is expected to be in the range of £4.2 billion to £4.6 billion, higher than last year due to the investment needs for recent
acquisitions and the wider rollout of HSDPA. Free cash flow is anticipated to be in the range of £4.0 billion to £4.5 billion. Higher tax payments, including around £1.2
billion, with interest costs, from settling some long standing disputes, increased
capital expenditure and higher financing costs from our increased borrowing,
are expected to offset continued growth in underlying operating cash flows.
Executing our strategy
We have a good track record of delivering against our plans and demonstrating outperformance against the majority of our principal competitors. However, our environment is changing
and we need to adapt to ensure we continue to meet our customer needs and deliver superior returns to shareholders.
We have established clear strategic objectives: cost reduction and revenue stimulation in Europe; innovating and delivering total communications solutions; delivering strong growth in
emerging markets; actively managing our portfolio to maximise returns; and aligning our financial policies to our strategy. We have reorganised the business as we begin to deliver against these objectives.
Vodafone is well placed to execute on this strategy. Our scale makes us the clear partner of choice for others and we have a track record for innovation. We have a strong brand and an
unrivalled customer reach. As customer demands evolve and technology converges, we remain focused on the core benefits of mobility and personalisation as we seek to deliver total communications solutions. We have a significant opportunity to deliver
value to both our customers and shareholders.
On a final note, on behalf of the Board, I would like to express sincere thanks to Ian MacLaurin, who is retiring as Chairman, for his service and support to the Company since 1997.
We wish him continued success.
Arun Sarin
Chief Executive
Vodafone
            Group Plc
Annual Report 2006
11
Back to Contents
Contents
Page
Business Overview
12
– Introduction
12
– Mobile
      Telecommunications
12
– Non-mobile
      Telecommunications
19
– History
      and Development of the Company
19
Regulation
21
Business Overview
Introduction
Vodafone
  Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States
through the Company's subsidiary undertakings, joint ventures, associated
undertakings and investments.
The Group's mobile subsidiaries and joint venture in Italy operate under the brand name "Vodafone". In the United States, the Group's associated undertaking
operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with a number of its associated undertakings and with network operators in countries where the Group does not hold an equity stake. Under
the terms of these Partner Market agreements, the Group and its Partner Markets co-operate in the development and marketing of certain services, often under dual brand logos. This has expanded the Group's
global footprint in Europe, Asia
Pacific and, most recently, South America.
The Group provides
a wide range of voice and data mobile telecommunications services, including
text messages ("SMS"), picture messages ("MMS") and other data
services, and is continually developing and enhancing service offerings, particularly through third generation ("3G") mobile technology which is being deployed in the majority of the Group's
operations. Services are provided to both consumers and corporate customers,
through a variety of both prepaid and contract tariff arrangements.
The Group's mobile services are currently offered over a Global System for Mobile Communications ("GSM") network, on which a General Packet Radio Service
("GPRS") service is also provided and, in certain operations, over a Wideband Code Division Multiple Access ("W-CDMA") 3G network. The Group's
discontinued operation in Japan operated a different technology to GSM. Where
licences have been issued, the Group has secured 3G licences in all jurisdictions
in which it operates through its subsidiary undertakings and continues to roll
out mobile 3G network infrastructure. Vodafone offered 3G services in 11 of its
controlled operations at 31 March 2006.
The Group is managed
and organised by business and geography. The Group has mobile and fixed line
telecommunications businesses, with the latter referred to as Other Operations.
Vodafone's principal mobile operations are located in Germany, Italy, Spain, the UK and the US with the Group's Other Mobile Operations covering operations in Europe, the Middle East, Africa and Asia Pacific. In addition, there are a
number of central functions which provide services to the mobile operations and allow the Group to leverage its scale and scope and manage risk effectively. Other Operations principally consists of the Group's controlling interest in a fixed
line telecommunications business in Germany. On 1 May 2006, changes to the organisational structure were effected with the objective of focusing the Group's
mobile businesses according to different market and customer requirements.
The Company's
ordinary shares are listed on the London Stock Exchange and the Company's ADSs are listed on the New York Stock Exchange ("NYSE"). The Company had a total market capitalisation of approximately £72
billion at 26 May 2006, making it the fifth largest company in the Financial
Times Stock Exchange 100 index and the twenty second largest company in the world
based on market capitalisation at that date.
Mobile Telecommunications
Local operations
The
Company has equity interests in 26 countries, through its subsidiary undertakings,
  joint ventures, associated undertakings and investments. Partner Market arrangements
  extend the
Group's footprint to a further 32 countries.
At 31 March 2006,
based on the registered customers of mobile telecommunications ventures in which
it had equity interests at that date, the Group had approximately 170.6 million
customers, calculated on a proportionate basis in accordance with the Group's percentage interest in these ventures, and 518.0 million registered venture customers. The table on the following page sets out a summary of the Company's
worldwide mobile operations at 31 March 2006 and venture customer growth in the year then ended (the "2006 financial year").
Competition
The Group faces a high degree of competition in each of its geographic markets. It is subject to indirect competition from providers of other telecommunications services in the
domestic markets in which it operates in addition to direct competition from existing mobile telecommunications network operators and MVNOs who do not operate a mobile telecommunications network. There are also new types of competitors, such as
fixed line operators offering combined fixed and mobile service offerings, and internet based companies extending their services to include telecommunications. Competitive pressures have adversely impacted the level of customer churn, although this
has been managed by reductions in tariffs and a continued focus on customer acquisition and retention initiatives.
The Group expects
that competition will continue from existing operators as well as from a number
of new market entrants, including those arising following the award of new 3G
licences and MVNOs. The scope of this increased competition, and the impact on
the results of operations, is discussed further in "Performance – Risk Factors, Trends and Outlook".
Many of Vodafone's key markets are highly penetrated with over 100% penetration rates in some, largely due to a number of customers owning more than one subscriber identity
module ("SIM"), which is, broadly, the Group's basis for defining
a customer. The Group has estimated penetration rates at 31 December 2005 for
its principal markets as follows:
Market
Penetration (%)
Germany
96
Italy
122
Spain
98
UK
109
US
69
A summary of the significant mobile competitors in its markets at 31 March 2006 is also provided in the following table.
12
Vodafone
            Group Plc
Annual Report 2006
Back to Contents
Business
Summary
of Group mobile telecommunications businesses at 31 March 2006
(1)
Registered
Venture
Venture
proportionate
Registered
Percentage
customers
(4)
customer
customers
prepaid
Country by region
(2)
ownership
(3)
('000)
growth (%)
(5)
('000)
prepaid (%)
(6)
Names of significant mobile competitors
(7)
Germany
100.0
29,191
7.2
29,191
53.3
E-Plus, O
2
, T-Mobile
Italy
(8)
76.9
24,056
6.9
18,490
92.2
TIM, Wind, 3
Spain
100.0
13,521
17.9
13,521
50.4
Amena,
    Telefónica Móviles, Xfera
(9)
UK
100.0
16,304
6.4
16,304
61.1
Orange, O
2
, T-Mobile, 3, Virgin Mobile
US
(10)
44.4
53,020
16.7
23,530
5.5
National operators
(11)
: Cingular Wireless,
Sprint Nextel, T-Mobile
Other mobile operations
Subsidiaries
Albania
99.9
773
19.1
772
96.8
AMC
Australia
100.0
3,177
16.3
3,177
74.0
Optus, Telstra, 3
Czech Republic
100.0
2,214
–
2,214
47.5
T-Mobile, Eurotel Praha
Egypt
50.1
6,615
59.9
3,314
90.4
MobiNil
Greece
99.8
4,479
11.9
4,471
66.4
Cosmote, Q-Telecom, TIM
Hungary
100.0
2,063
18.9
2,063
68.9
Pannon GSM, T-Mobile
Ireland
100.0
2,075
6.3
2,075
73.7
Meteor, O
2
, 3
Malta
100.0
175
4.8
175
89.8
Go Mobile
Netherlands
99.9
3,913
3.2
3,909
52.4
KPN Mobile, Orange, T-Mobile, Telfort
(12)
New Zealand
100.0
2,068
9.4
2,068
77.6
Telecom
Portugal
100.0
4,276
19.2
4,276
79.7
Optimus, TMN
Romania
100.0
6,384
27.1
6,384
64.9
Orange, Cosmorom, Zapp
TOTAL
38,212
28.8
34,898
71.8
Other joint ventures
Fiji
49.0
206
32.9
101
94.0
–
India
10.0
19,579
–
1,958
82.8
Hutch, Idea, BSNL/MTNL, Reliance Infocom,
Tata Teleservices
Kenya
35.0
3,944
56.9
1,380
98.2
Celtel
(13)
Poland
19.6
9,779
32.9
1,918
56.5
Orange, ERA
South Africa
(14)
49.9
23,520
51.9
10,968
89.5
Cell C, MTN
TOTAL
57,028
123.6
16,325
82.2
Other associates and investments
Belgium
25.0
4,338
1.0
1,085
57.7
BASE (KPN), Mobistar (Orange)
China
3.3
260,645
20.9
8,523
76.0
China Netcom, China Telecom, China Unicom
France
44.0
17,282
8.2
7,612
44.0
Bouygues, Orange
Switzerland
25.0
4,370
10.2
1,092
39.0
Orange, Sunrise, Tele2
TOTAL
286,635
19.5
18,312
73.2
GROUP TOTAL
517,967
24.2
170,571
65.9
Notes:
(1)
The above information is presented for continuing operations only. Japan is classified as a discontinued operation and had 15,210,000 venture customers
and14,858,000 registered proportionate customers at 31 March 2006.
(2)
All controlled networks and the jointly controlled network in Italy operate under the Vodafone brand, with the exception of Vodafone Romania, which operates under
the dual brand Connex Vodafone. Networks in which the Company does not have a controlling interest operate under the following brands: Belgium – Proximus; China – China Mobile; Fiji – Vodafone; France – SFR; India – Airtel;
Kenya – Safaricom; Poland – Plus GSM; South Africa – Vodacom; Switzerland – Swisscom Mobile; US – Verizon Wireless.
(3)
All ownership percentages are stated as at 31 March 2006 and exclude options, warrants or other rights or obligations of the Group to increase or decrease
ownership in any venture as detailed in "Financial Position and Resources – Liquidity and Capital Resources – Option agreements" Ownership interests have been rounded to the nearest tenth of one percent.
(4)
See page 49 for a definition of a customer.
(5)
Venture customer growth is for the year to 31 March 2006.
(6)
Prepaid customer percentages are calculated on a venture basis at 31 March 2006.
(7)
Includes significant MVNOs which do not operate a mobile telecommunications network.
(8)
Vodafone Italy is a joint venture.
(9)
Licensed network operator, scheduled to commence commercial service during the 2007 financial year.
(10)
The Group's ownership interest in Verizon Wireless is 45.0%. However, the Group's proportionate customer base has been adjusted for Verizon
Wireless's proportionate ownership of its customer base across all its network interests of approximately 98.6%, at 31 March 2006. In the absence of acquired interests, this proportionate ownership will vary slightly from period to period
depending on the underlying mix of net additions across each of these networks.
(11)
This is not a full list of US network operators. In the United States, in addition to the national operators shown, there are several regional and numerous local
operators.
(12)
Telfort was acquired by KPN Mobile during the financial year but still operates its own network.
(13)
The Kenyan Government has awarded a third licence but the operator had not commenced service at 30 May 2006.
(14)
On 20 April 2006, the Group's ownership percentage increased to 50%.
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Business
      Overview
continued
Partner Markets
Partner Markets
  are operations in which the Group has entered into a partnership agreement
  with a local mobile operator, enabling a range of Vodafone's global products and
  services to be marketed in that operator's territory. The Group's
  Partner Market strategy enables the Group to implement its global services
  in new territories,
  extend its brand reach into new markets and create additional revenue without
  the need for equity investment.
Similar agreements
also exist with a number of the Group's associated undertakings.
Details of the partnership
agreements in place as at 31 March 2006 are provided on the Group's website.
Licences and network infrastructure
Licences
The
Group is dependent on the licences it holds to operate mobile telecommunications
services. Further detail on the issue and regulation of licences can be found
in "Regulation". The table below summarises the significant licences held by the Group's mobile operating subsidiaries and the Group's
joint venture in Italy:
Date of
Country by
Licence
Licence expiry
Network
commencement of
region
type
date
type
commercial service
Germany
2G
December 2009
GSM/GPRS
June 1992
3G
December 2020
W-CDMA
February 2004
Italy
2G
January 2015
GSM/GPRS
December 1995
3G
December 2021
W-CDMA
February 2004
Spain
2G
July 2023
(1)
GSM/GPRS
October 1995
3G
April 2020
W-CDMA
February 2004
UK
2G
See note
(2)
GSM/GPRS
December 1991
3G
December 2021
W-CDMA
February 2004
Other mobile operators
Albania
2G
June 2016
GSM
August 2001
Australia
2G
June 2017
(3)
GSM/GPRS
September 1993
3G
October 2017
W-CDMA
October 2005
Czech Republic
2G
November 2020
GSM/GPRS
March 2000
3G
February 2025
W-CDMA
See note
(4)
Egypt
2G
May 2013
GSM/GPRS
November 1998
Greece
2G
September 2012
GSM/GPRS
July 1993
3G
August 2021
W-CDMA
July 2004
Hungary
2G
July 2014
(5)
GSM/GPRS
November 1999
3G
December 2019
W-CDMA
December 2005
Ireland
2G
December 2014
GSM/GPRS
March 1993
3G
October 2022
W-CDMA
May 2003
Malta
2G
September 2010
GSM/GPRS
July 1997
3G
August 2020
W-CDMA
–
Netherlands
2G
February 2013
(1)
GSM/GPRS
September 1995
3G
December 2016
W-CDMA
February 2004
New Zealand
2G
See note
(6)
GSM/GPRS
July 1993
3G
March 2021
(6)
W-CDMA
August 2005
Portugal
2G
October 2006
GSM/GPRS
October 1992
3G
January 2016
W-CDMA
February 2004
(7)
Romania
2G
December 2011
GSM/GPRS
April 1997
3G
March 2020
W-CDMA
April 2005
Notes:
(1)
Date relates to 1800MHz spectrum licence. Vodafone Netherlands and Vodafone Spain also have separate 900MHz spectrum licences which expire in March 2010 and
February 2020, respectively.
(2)
Indefinite licence with a one year notice of revocation.
(3)
Date refers to 900MHz spectrum licence. Various licences are held for 1800MHz licences, which are issued by specific regional regulators. The earliest expires in
June 2013 and the latest in March 2015.
(4)
Planned for the 2007 financial year.
(5)
There is an option to extend this licence for seven years.
(6)
Vodafone New Zealand owns three GSM 900 licences (2x21MHz) and one GSM1800 licence (2x15MHz). The GSM900 licences expire in November 2011, July 2012 and September
2021. The GSM1800 licence expires in March 2021.
(7)
Portugal launched the Vodafone Mobile Connect 3G/GPRS data card in February 2004, and the launch of 3G voice services took place in May 2005.
Mobile network infrastructure
Network infrastructure is fundamental to the Group being able to provide mobile services. The mobile network enables the Group's customers to place and receive voice calls and allows the Group to provide other services, such as text messaging.
When a voice call or data transmission is made on a mobile device, voice or data is sent from the device and transmitted by low powered radio signals to the nearest base station,
which in turn is connected to the Group's network. Each base station provides coverage over a given geographic area, often referred to as a cell. Cells can be as small as an individual building or as large as 20 miles across. Each cell is
equipped with its own radio transmitter and receiver antenna. This network of cells provides, within certain limitations, coverage over the service area. When a customer using a mobile device approaches the boundary of one cell, the mobile network
senses that the signal is becoming weak and automatically hands over the call to the transmission unit in the next cell into which the device is moving.
If the voice call or data transmission is intended for delivery to another device which is not on the Vodafone network, the information is delivered through a public or private fixed
line telephone network or the internet.
In a second generation ("2G") network, each cell contains a base station using a number of radio frequencies or channels. A group of base stations is connected to a base
station controller, which in turn is connected to a mobile switching centre and then via a gateway support node for access to a fixed line network or the internet.
In a 3G network, voice or data traffic is passed through a node B, being similar to a base station in a 2G network, to a radio network controller, which is then connected to a mobile
switching centre, similar to a 2G network.
Base stations and node Bs form a core element of a mobile network and an insufficient number of base stations can result in loss of service for customers. In addition, the correct
deployment of the right base stations is instrumental in achieving the network quality and coverage that are crucial to customer satisfaction.
2G
Vodafone operates
2G networks in all its mobile operating subsidiaries, principally through GSM
networks, offering customers services such as voice, text messaging and basic
data
services. In addition, all of the Group's controlled networks, with the exception of Albania, operate GPRS, often referred to as 2.5G. GPRS allows mobile devices to be used for sending and receiving data over an internet protocol
("IP") based network, enabling wireless access to data networks like the internet.
The GPRS data service offering includes internet and e-mail access allowing the customer to be always connected at download speeds slightly below a dial-up modem. Vodafone also offers
a great variety of services on its Vodafone live! portal, such as picture and video messaging, download of ringtones, news and many other services.
3G
Vodafone's 3G networks, operating the W-CDMA standard, provide customers with mobile broadband data access, allowing data download speeds of up to 384 kilobits per second
("kbps"), which is up to seven times faster than a dial-up modem. Vodafone
has expanded its service offering on 3G networks with high speed internet and
e-mail access, video telephony, full track music downloads, mobile TV and other
data services in addition to existing voice and data services.
The Group has secured 3G licences in all jurisdictions in which it operates through its subsidiary undertakings and in which such licences have been awarded to date, as well as in
Italy through its joint venture. Vodafone expects to participate in additional 3G licence allocation procedures in other jurisdictions in which it operates. No assurances can be given that the Group will be successful in obtaining any 3G licences
for which it intends to apply or bid.
Roll out of the 3G network infrastructure has continued throughout the 2006 financial year across the Group's mobile operations, with additions to property, plant and equipment
and computer software amounting to approximately £4.0 billion during the financial year, including approximately £1.1 billion expenditure on 3G network infrastructure. By the end of March 2006, over 33,000 node B's were in operation
in the Group's controlled operations and the Group's joint venture in Italy. In many of the Group's markets, Vodafone has achieved the leading position on 3G coverage and quality of service.
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    Group Plc
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Business
High
Speed Downlink Packet Access ("HSDPA")
After successful field tests, Vodafone has started to upgrade existing 3G networks with HSDPA.
HSDPA enables data
transmission speeds of up to two megabits per second ("Mbps") in the
first phase, with up to 14.4 Mbps achievable with later releases. This will provide
customers with faster access speeds than experienced on existing 3G networks.
HSDPA is enabled through
the deployment of new software in the 3G radio network and expanding the processing
capabilities of the node B. Significant performance benefits are achieved by
using mechanisms that use the radio interface more effectively and are further
adapted to 'bursty' packet based data traffic using IP. A Vodafone
Mobile Connect data card which supports HSDPA is available commercially, and
compatible
Vodafone live! handsets will be launched in the summer of 2006.
HSDPA has been launched
commercially by a number of the Group's mobile operations, including Germany
and Portugal, and will be launched by other operating companies in the Group
during the 2007 financial year.
While HSDPA focuses on downlink (network to mobile), Vodafone is also working on improving the data speeds in the uplink (mobile to network) to achieve speeds of up to 384kbps.
Global services
Supply chain management
Handsets,
network equipment, marketing and IT services account for the majority of Vodafone's purchases, with the bulk of these purchases from global suppliers. The Group's
Global Supply Chain Management ("GSCM") team is responsible for managing most of the Group's
relationships with these suppliers.
As GSCM has expanded
its scope of activities, Vodafone has seen significant progress in reducing per
unit capital and operational expenditures, by leveraging the Group's
scale.
GSCM works with more
than 250 strategic suppliers. A consistent supplier performance management process
has been implemented across the Group's mobile operations and Vodafone is
actively managing a growing number of key suppliers in this way. Key suppliers are evaluated across six areas, covering aspects of financial stability, technological and commercial criteria, delivery and quality management requirements and corporate
responsibility. This process is also being applied to consider relationships with new suppliers, and recently several Chinese suppliers have been qualified for business through GSCM's
China Sourcing Initiative.
GSCM also strives
to identify best practice across the Group's mobile operations with the
aim of harmonising business processes, which will bring the benefits of further
reducing
procurement costs and reducing time to market.
Global suppliers are
required to comply with the Group's Code of Ethical Purchasing which sets out the labour and environmental standards the Group expects suppliers to meet. The
Code is based on the Group's values and international standards, including
the Universal Declaration of Human Rights and the International Labour Organisation
Conventions on Labour Standards.
A business-to-business
electronic commerce strategy is currently being implemented to further increase
transparency and control. In the 2006 financial year, purchases of more than £0.8
billion have been effected through e-auctions, driving significant cost savings.
More recently, a global demand management application has been implemented as part of the One Vodafone programme. This web-based application has been developed to provide improved
co-ordination of the global purchase of handsets, providing benefits such as the reduction of inventory and obsolescence risk, improved availability and improved effectiveness to allow the Group to respond better to market changes.
It is the Group's policy to agree terms of transactions, including payment terms, with suppliers and it is the Group's
normal practice that payment is made accordingly. The number of days outstanding
between receipt of invoices and date of payment, calculated by reference to the
amount owed to suppliers at the year end as a proportion of the amounts invoiced
by suppliers during the year, was 36 days (2005: 35 days) in
aggregate for the Group.
Products and services
Voice services
Revenue from
voice services makes up the largest portion of the Group's revenue and the
Group is undertaking a wide range of activities to encourage growth in the usage
of these services. In increasingly competitive local markets where value for
money is an important consideration, improving use of existing products and developing
a range of new offerings for customers has helped the Group to continue to grow
total voice
revenue.
Value for money is an important factor for customers when choosing a mobile phone network and is also important in encouraging usage of services whilst maximising revenue and margins.
Two main charging or payment models exist in the mobile market – contract and prepaid. Contract customers are usually governed by a written contract and credit facilities are granted to them to enable access to mobile network services. In most
cases, contracts have a term of 12 to 24 months with monthly payments for services and, in many of the Group's mobile operations, the option of purchasing a subsidised handset. A prepaid customer pays in advance in order to gain access to voice
and other services. The take-up of these models in the markets in which the Group operates varies significantly, from the US, where the vast majority of customers are on contract plans, to Italy and Egypt, where the market is predominantly
prepaid.
The Group has made pricing more customer friendly and value inclusive in a number of its mobile operations. In many cases, these new price structures include large minute bundles that
allow customers to talk more for longer. These larger bundle packages and promotions have driven significant usage growth in many of the markets in which the Group operates, although the price per minute is falling across most markets.
Revenue is generated by incoming as well as outgoing calls. Interconnect revenue is received when a customer of a fixed line or other mobile operator network calls a Vodafone
customer. Approximately a fifth of mobile voice revenue is derived from incoming calls.
The Group continues to invest in providing enhanced network coverage for services in response to Group-wide customer feedback. In parallel, the Group is improving network service
quality to ensure that customers can use their mobile phone whenever and wherever they want.
Social products
Work has continued this year on making mobile services more accessible to people with special communication needs. Vodafone has undertaken significant research to better understand
the levels of exclusion relating to use of mobile technology, which is helping to inform relevant areas of the business.
A new Social Investment Fund has been formed to provide incremental resources going forward and to seed initiatives that can demonstrate high social value. One of the initiatives
likely to benefit from this is M-pesa, an innovative mobile micro-finance service now on trial in Kenya. This service, run in conjunction with a local bank and Vodafone's Kenyan joint venture, Safaricom, enables customers to move money in and
out of accounts, between other customers and to withdraw cash, all using secure mobile messaging.
Non-voice services
Messaging services
All
of the Group's mobile operations offer SMS, which allows customers to send
and receive text messages using mobile handsets and various other devices. SMS
usage continued to grow in the 2006 financial year and is the largest contributor
to total messaging revenues. MMS, which offers customers the ability to send
and receive multiple media, such as pictures, music, sound, video and text, to
and from other compatible
devices is also available in all Group mobile operations, with the exception
of Albania. MMS has enjoyed strong revenue growth in the 2006 financial year
across the Group.
Vodafone's mobile instant messaging service ("Vodafone Messenger") was re-launched during November 2005 in Italy, Spain and the Netherlands and is currently available
in 11 countries. The service has full compatibility with Microsoft's MSN Messenger in order to address growing customer needs for instant communications.
Vodafone live!
Vodafone
live!, the Group's integrated communications and multimedia proposition initially launched in October 2002, has continued to grow strongly. The proposition, targeted
primarily at the young adult ("young active fun") segment, has been launched in four new markets since 31 March 2005, bringing the total number of countries now offering Vodafone live! to 24. The new markets added in the 2006 financial
year were Luxembourg, Iceland, Cyprus and South Africa. At 31 March 2006, there were 27.1 million Vodafone live! active devices on the Group's controlled and jointly controlled networks, with an additional 5.9 million devices connected in the
Group's associated undertakings.
Vodafone
            Group Plc
Annual Report 2006
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Business
      Overview
continued
Vodafone
      has continued to develop the Vodafone live! proposition by offering a new
      range of services,
content, handsets and tariffs. The design of the Vodafone live! portal, through
which customers can access a range of online services – including games, ringtones, news, sports and information – is
being continually enhanced to provide richer content and to make it easier for
customers to find and purchase
content.
The important ringtones
market has continued to develop with mass market adoption of 'real-tones' where
customers are able to purchase samples of real music recordings as ringtones
from artists signed to labels including EMI, Sony BMG Music Entertainment, Universal
Music and Warner Music.
Tariff structures have been updated, with a range of messaging and content based bundles now available to customers. These have delivered improved customer value, particularly when
offered in conjunction with a handset purchase. In addition, browsing charges for accessing the mobile internet have been simplified in many markets, making it more attractive for customers to browse the web using their mobile phones.
23 new 2.5G phones
have been added to the Vodafone live! portfolio in the 2006 financial year, with
an increased emphasis on exclusive and customised devices. The new handsets have
offered improved camera capabilities, better connectivity, with a significant
proportion of devices now offering 'Bluetooth' (a wireless link function),
and increased memory card storage to enable customers to save content on their
devices.
Throughout the 2006 financial year, Vodafone has continued to develop standards in the areas of terminals, platforms, games, digital rights management and MMS. These initiatives are
expected to lead to increased speed to market and better services for customers.
Vodafone live! with 3G
In November 2004, the Group launched Vodafone live! with 3G across 13 markets, with an initial portfolio of 10 devices. Vodafone live! with 3G is now available in 10 controlled
markets, two joint venture markets, three associated company markets and three Partner Markets. At 31 March 2006, there were 7.1 million devices registered on the controlled and jointly controlled networks capable of accessing the Vodafone live!
with 3G portal, and the portfolio of Vodafone live! with 3G devices had expanded to 35. 17 new 3G phones have been added to the portfolio during the 2006 financial year.
An enhanced mobile experience gives Vodafone live! with 3G customers access to a range of high quality content and communication services. Vodafone live! with 3G customers can now
experience news broadcasts, sports highlights, music videos, movie trailers and other video content at a quality approaching that of digital television.
Vodafone continues to work with leading content partners, including HBO, Eurosport, MTV, UEFA Champions League, Fox and Discovery, to enhance the mobile TV and film content offering.
The wide bandwidth of 3G supports access to sophisticated 3D games and the portfolio of mobile games is continually expanding.
The 3G service also
supports full track music downloads which allow customers to use their phone
to listen to music, choosing from a range that currently includes more than 600,000
music tracks. Vodafone has secured music from some of the world's greatest
artists through agreements with EMI, Sony BMG Music Entertainment, Universal
Music, Warner Music and other independent record labels. Using the 3G service,
customers can also download live performance videos and stream clips direct to
their mobiles.
In the coming year, Vodafone will continue to enhance the music offering with the introduction of Vodafone Radio DJ, a personalised, interactive radio service streamed to both 3G
phones and PCs. Customers will have access to hundreds of thousands of tracks and will be able to personalise radio channels to their taste. This service will be offered on a monthly subscription, giving unlimited listening time, and is due for
release in more than 20 countries over the next year.
In February 2006,
a deal was signed with Google giving Vodafone customers access to the Google
search engine via the Vodafone live! portal. The addition of the Google search
engine (to be available from October 2006) will help customers access content
more easily both on-portal and on the wider 'mobile internet'. The
agreement also sees the introduction of a new advertising based revenue stream
to Vodafone live! by incorporating relevant sponsored links within customer search
results. The partnership provides a future framework for other innovative collaborations
between Vodafone and Google, bringing new opportunities to further expand consumer
offerings by
incorporating other existing Google products.
Content standards
Vodafone
has continued to provide a leadership role in content standards with the launch
of a global
access control programme and an off-net filter. The access control programme
demonstrates Vodafone's commitment to deliver content responsibly and provides
the capability for parents to restrict access to content that may be inappropriate
for younger users. Ensuring that the mobile needs of parents and their children
are satisfied will remain a priority during the 2007 financial year.
As new media channels evolve, a number of Vodafone initiatives are designed to ensure protection for our customers from inappropriate content, contact and commercialism. These include
providing supporting guidelines around the marketing of content to customers, signing up to the codes of practice on spam content and the development of editorial guidelines to provide more robust parental controls.
Vodafone Mobile Connect data cards
First launched in April 2003, the Vodafone Mobile Connect data card provides simple and secure access to existing business information systems such as email, corporate applications,
company intranets and the internet for customers on the move. Access speeds vary depending on which technology the data card is using but typically ranges from 384 kbps when connected to a 3G network up to 1.2 Mbps when connected to a network
enabled with HSDPA technology. The Vodafone Mobile Connect with 3G broadband data card, which utilises HSDPA technology, has been launched in five markets, with other markets to follow during the 2007 financial year.
The Vodafone Mobile Connect 3G/GPRS data card has now been rolled out across 11 controlled markets, two joint venture markets, three associated companies markets and ten Partner
Markets. Vodafone Mobile Connect data cards are available in an increasing number of distribution channels.
During the 2006 financial year, Vodafone announced the launch of built-in 3G broadband connectivity with Acer, Dell and Lenovo notebooks. The roll out of the notebooks will further
enhance the choices available to Vodafone customers for high speed mobile working.
The product portfolio
was enhanced during the financial year with the launch of an EV-DO data card
allowing customers to connect with Verizon Wireless' high speed data network
whilst travelling in the US. In addition, Vodafone also launched a 3G router
in conjunction with Cisco and Linksys, which enables mobile connectivity for
groups of employees.
At 31 March 2006,
there were 0.7 million registered Vodafone Mobile Connect data cards in the Group's
controlled and jointly controlled markets.
Vodafone Wireless Office
Vodafone Wireless Office offers companies the opportunity to reduce the number of fixed desk phones they have and facilitates the move of voice minutes from the fixed to the mobile
network through a solution that includes elements that can match or better fixed line call costs, desk phone functionality and user experience. A closed user group tariff, allowing employees to call each other for a flat monthly fee, is a key part
of the offer. Another optional element allows a customer to control their mobile phone from their PC or laptop.
At 31 March 2006, Vodafone Wireless Office was available in 14 markets and had over 1.5 million customers.
Other business services
Beyond the wireless enablement of notebook computers, there is an increasing demand for handheld solutions that allow real-time access to email, calendar, contact and other
applications. During 2004, Vodafone launched its BlackBerry
®
from Vodafone proposition,
which is now available in 11 controlled markets, two joint venture markets, three associated company markets and nine Partner Markets.
There were 0.4 million
BlackBerry from Vodafone customers on the Group's controlled and jointly
controlled networks as at 31 March 2006.
On 21 April 2005, the Group announced the roll out of Vodafone Push email, a service providing real-time, secure and remote access to email, contacts and calendar direct to a range of
business-focused mobile devices. The service has been rolled out in six controlled markets, one joint venture market, two associated company markets and two Partner Markets. At 31 March 2006, the service was supported by ten global devices and a
varied number of local devices in the controlled markets.
Roaming services
When travelling abroad roaming allows mobile phone users to make and receive calls using another mobile network in the visited country. The Group continued to expand its roaming
coverage and services during the 2006 financial year. The focus of the year, however, was to provide reduced, clearer and easier to understand prices to our customers under the Vodafone Travel Promise roaming campaign launched in May 2005.
On 8 May 2006, the Group announced that average European roaming costs for Vodafone customers will be cut by at least 40% by April 2007, when compared to the period from June to
August 2005. This is expected to benefit over 30 million Vodafone customers who roam every year, and will see the average cost of roaming in Europe fall from over 90 eurocents per minute to less than 55 eurocents per minute. The average
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Business
saving was
  determined by calculating the expected cost per minute for all Vodafone's European customers who roam within the EU during the month of April 2007 and comparing this
to the average cost per minute for all European customers who roamed within the EU during the period from June to August 2005 (see "Regulation").
Vodafone also announced that it will enter into reciprocal wholesale arrangements
with any other European operator at no more than 45 eurocents per minute for
voice calls within the EU from October 2006. This will enable both Vodafone and
other European mobile operators to continue to lower the cost of roaming to customers
outside of their own networks.
Vodafone Passport
Vodafone
Passport introduced a new roaming pricing architecture for calls made on Vodafone
and
Partner Networks, enabling customers to "take their home tariff abroad".
The Vodafone Passport price architecture offers greater price transparency and
certainty to customers when using roaming services abroad. Whilst abroad, customers
can make calls using their domestic tariff, in some cases including free minute
bundles,
and receive calls at no charge – for a one-off connection fee per call.
Vodafone Passport is now available in 10 controlled markets, one joint venture
market, one associated company market and one Partner Market. By 31 March 2006,
the service had attracted
5.6 million customers in the Group's controlled and jointly controlled operations
and a further 0.4 million customers in one of the Group's associated undertakings
and a Partner Market. Results show that on average, customers are both talking
more and paying less per call when abroad. In addition, Vodafone's cost
per minute for roaming customers fell by over 30% from summer 2004 compared with
summer 2005.
Wholesale strategy
During
the year, the
commercial management of the Group's business with its main roaming partners
has been consolidated in order to better leverage the scale and scope of the
Group's branded footprint. This arrangement has successfully secured a number
of important wholesale roaming discount agreements with other networks on behalf
of the Group. These provide cost structures that support the development of our
roaming customer propositions, promote the mutual development of roaming services
with our Partner Markets, and deliver significant cost savings.
Managed roaming, the network technology that automatically directs Vodafone customers
to the networks of Partner Markets, is now operating in ten markets, delivering
a strong Vodafone customer experience and allowing the Group to benefit from
an improved cost structure.
Data propositions
Several
actions were taken to complement Vodafone Passport by providing simplicity, price
predictability and value for money across data services. Vodafone Group took
the initiative
to reduce substantially – up to 66% in some markets – the cost per
megabyte for standard data usage across its controlled markets. This move was
followed by most joint ventures, associated companies and Partner Markets, enabling
customers to benefit from a conveniently priced data platform across a wide footprint
of 30 markets.
In addition, after pioneering flat monthly data roaming tariffs with its BlackBerry
from Vodafone offer in 2004, Vodafone launched a monthly bundle for its Vodafone
Mobile Connect 3G/GPRS data card in August 2005, which eliminated price uncertainty
and further reduced the nominal cost per megabyte by over 80%. This has significantly
increased usage and contributed to the revenue growth in data services seen over
the 2006
financial year.
Vodafone Simply
The
Vodafone Simply proposition, launched in May 2005, is predominantly targeted
at the adult personal user segment. The integrated proposition has been developed
to help customers who are less comfortable with mobile technology but would still
like to access
the mobile experience. The proposition includes exclusively developed, 'easy
to use' mobile phones with uniquely developed user interfaces accompanied
with tariff plans
and a tailored retail and customer support experience.
At 31 March 2006, Vodafone Simply was available in a total of 17 markets, with
0.4 million Vodafone
Simply enabled devices registered on the Group's controlled and jointly
controlled networks.
Marketing and brand
Brand
Brand
marketing focuses on defining a superior, consistent and differentiated experience
for our customers. A programme has been undertaken to identify the heart of the
Vodafone brand,
that is, Vodafone's brand essence – which evokes passion, dependability
and a constant striving for improvement. The brand essence has been used to bring
the Vodafone brand to life for Vodafone employees, so that they can do the same
for customers in every interaction.
Customer communications
Communication
to drive brand preference and service usage is facilitated through various integrated
advertising media including radio, television, print and outdoor sites. Global
advertising has been developed to communicate the brand essence and to drive
revenue growth by encouraging our customers to 'make the most of Now'.
Advertising is supported by strong sponsorship relationships, such as those with
Ferrari and the UEFA Champions League, which have global exposure and allow for
benefits to be realised at the local level. Media activity is based on customer
insight, and is designed to ensure a consistent and effective brand experience
across
Vodafone's footprint.
Customer strategy and management
Vodafone
uses a customer
management system called 'customer delight' to measure customer satisfaction
in the Group's controlled markets and the jointly controlled market in Italy
at a local and global level. This is a proprietary diagnostic system which tracks
customer satisfaction across all the points of interaction with Vodafone, and
identifies the drivers of customer delight and their relative impact. This information
is used to optimise satisfaction and maximise the financial benefit from differentiated
marketing propositions and programmes.
Distribution
The
Group distributes its products and services through a wide variety of direct
and indirect channels, with different approaches used in the consumer and business
sectors.
Products and services are available directly to both consumer and business customers
in the majority of markets. Over 1,000 stores are directly owned and managed
by Vodafone, with an additional 6,500 Vodafone branded stores. In addition, local
websites offer products and services online and local sales forces are in place
to discuss terms with business customers.
The extent of indirect distribution varies between markets but may include using
third party service providers, independent dealers, agencies and mass marketing.
Marketing to third party service providers includes maintaining a competitive
tariff structure, providing technical and other training to their staff and providing
financial incentives for service providers, their dealers and sales people. It
also entails providing assistance on advertising campaigns and supporting the
development of both specialist retail outlets and programmes with multiple retailers.
Vodafone's engagement with IT resellers and distributors has strengthened
during the year, with global and local partnerships now fully operational in
12 countries across the Vodafone footprint. In support of this channel capability,
Vodafone has launched a channel marketing programme to engage with the IT reseller
community via the internet. The programme allows Vodafone marketing and communication
access to the IT channel and incentivisation for the sale of Vodafone data products.
The programme is operational in eight controlled markets and will be extended
across the rest of the Vodafone footprint during the 2007 financial year. This
engagement with the IT
channel considerably extends Vodafone's ability to sell to small and medium
enterprises and small business customers as well as providing a key platform
to support the launch of notebooks with built in 3G broadband during the coming
year.
The last few years have seen the growth of MVNOs who buy access to existing networks
and re-sell them to customers under a different brand name and proposition. Where
such a relationship generates profitable use of network capacity and does not
impact the Vodafone brand, a mobile operating subsidiary may consider entering
into a partnership with an MVNO.
Multinational
corporates ("MNC")
In
April 2005, Vodafone launched the first global business unit aimed at serving
a specific customer
segment – the multinational corporate market. The MNC business unit currently
serves many of the world's largest enterprises with a differentiated global
MNC proposition. The sales and service teams are located across the globe, aligned
with the customers' locations. Customers of the business unit also benefit
from a central service unit to develop specific propositions and pricing specifically
targeted to meet the needs of a global Chief Information Officer, helping to
purchase, manage, monitor and administer mobile telecommunications centrally
within a
global organisation.
The Vodafone MNC unit's initial focus is on providing consistency across
Vodafone markets for existing corporate solutions, together with dedicated global
customer service and
global account management. The MNC vision is "worldwide communications made
easy for global businesses". In the year since launch, the Vodafone MNC
unit can offer a consistent BlackBerry from Vodafone solution in 12 markets,
a Master Service Agreement covering nine countries, a global helpdesk offering
third line support to the administrator of the global accounts, account and service
management at a global and local level in over 20 markets with full support from
a technical
team to implement existing solutions, and help develop tailored solutions.
Vodafone
            Group Plc
Annual Report 2006
17
Back to Content
Business Overview
continued
Summary of Group products and services
The
following table summarises the availability of the Group's most significant
products and services as at 31 March 2006. Only the markets in which Vodafone
products and
services are available to customers are represented below:
Vodafone
Vodafone
Mobile
Mobile
Connect
Black-
Vodafone
Connect
3G/GPRS
Berry
Vodafone
Vodafone
Vodafone
live!
data
data
from
Push
Wireless
Vodafone
Vodafone
Country
live!
with 3G
card
card
Vodafone
Email
Office
Passport
Simply
Subsidiaries
(1)
Germany
•
•
•
•
•
•
•
•
Spain
•
•
•
•
•
•
•
•
•
UK
•
•
•
•
•
•
•
•
•
Albania
*
•
Australia
•
•
•
•
•
•
•
Egypt
•
•
•
Greece
•
•
•
•
•
•
•
•
•
Hungary
•
*
•
•
•
•
•
•
Ireland
•
•
•
•
•
•
•
•
•
Malta
•
•
•
•
•
Netherlands
•
•
•
•
•
•
•
•
•
New Zealand
•
•
•
•
•
•
•
Portugal
•
•
•
•
•
•
•
•
Romania
•
Joint Ventures
Fiji
•
Italy
•
•
•
•
•
•
•
•
•
South Africa
•
•
•
•
Associates
France
•
•
•
•
•
•
•
•
•
Belgium
•
•
•
•
•
Switzerland
•
•
•
•
•
Partner Markets
Austria
•
•
•
•
•
Bahrain
•
•
Croatia
•
•
•
•
•
Cyprus
•
*
Denmark
•
•
•
Estonia
•
•
•
Finland
•
•
•
Hong Kong
•
•
Iceland
•
•
•
•
Kuwait
•
Luxembourg
•
•
•
Singapore
*
•
Slovenia
•
•
•
Sweden
•
•
•
•
•
•
•
•
Total markets
24
17
24
26
25
12
14
13
17
Note:
(1)
The
        following information is presented for continuing operations only. Japan
    is classified as a discontinued operation.
Key:
•
Available
    throughout the 2006 financial year
•
Launched
    in the 2006 financial year
*
Launched
    since 31 March 2006
One
Vodafone
The
One Vodafone initiatives are aimed at achieving cost savings and enhancing revenue
for the Group's controlled mobile businesses and the Group's
jointly controlled mobile business in Italy. The Group has previously targeted
that, in the 2008 financial year, the total of operating expenses (being the
aggregate of payroll and other operating expenses) and capitalised fixed asset
additions, would be broadly similar to those for the 2004 financial year, assuming
no significant changes in exchange rates and after adjusting for acquisitions
and disposals.
The Group has also previously targeted mobile capitalised fixed asset additions
in the 2008 financial year to be 10% of mobile revenue as a result of the initiatives.
Further, revenue enhancement initiatives were expected to deliver benefits equivalent
to at least 1% additional revenue market share in the 2008 financial year compared
with the 2005 financial year, which the Group is measuring in Germany, Italy,
Spain and the UK against its principal competitors.
The Group has updated its One Vodafone targets to reflect both the new organisational
structure and additional cost saving initiatives.
Capitalised fixed asset additions are expected to be 10% of revenues in the 2008
financial year
for the total of the Group's Europe region and its common functions.
The Group now expects the aggregate of payroll and other operating expenses to
be broadly stable in the 2008 financial year when compared to the 2006 financial
year for the total
of
the Group's Europe region and its common functions, assuming no significant
changes in exchange rates, after adjusting for acquisitions and disposals, and
excluding the potential impact from its New Businesses unit and any one off business
restructuring costs.
The objective for the 2006 financial year has been to commence implementation
of the plans outlined last year. Significant benefits are expected in the 2007
financial year, with the full targets expected to be met in the 2008 financial
year.
The One Vodafone programme has focused on six key initiatives, as follows:
•
The network and supply chain management initiative has driven prices down over the last two years in the radio network area through competitive bidding via
e-auctions and standardising specifications for base stations, accessories and operating costs. In core networks, the Group is advancing towards an all IP based network, thereby simplifying and reducing the number of component parts and leading to
lower costs. Through increasing the amount of self built transmission, both through microwave links and owned dark fibre, costs are being reduced and future cost escalation will be limited as the volume of data traffic grows.
•
The service platforms initiative has created a shared service organisation to host the European development and operations of services. The shared service
organisation is now providing a hosting service for the Vodafone live! portal for seven of the Group's mobile operating subsidiaries, the Group's joint venture in Italy and two Partner Markets. Other platforms are also being migrated and
new services are being implemented, for the first time, solely on the shared service platform. The centralisation is designed not only to reduce costs but also to increase revenue through reduced time to market for new products and
services.
•
The IT initiative focuses on the two areas of data centres and application development. For data centres, which host the servers to support billing and customer
relationship management systems, consolidation is underway, with migrations of all of the Southern European, German and Dutch data centres completed in the year, and work is progressing on the UK and Ireland data centres following the completion of
the planning phase in the 2006 financial year. The remaining part of the IT effort is focused on driving efficiencies in application development and maintenance, which will continue through to 2008 and beyond. Activities in both these areas are
enabling the Group to leverage its global purchasing power and drive operational excellence.
•
The customer management programme is focused on driving segment and value based service differentiation to improve customer satisfaction, generate revenue and
reduce churn. During the 2006 financial year, achievements included the launch of a common customer management service strategy, the implementation of a cross operating company network of specialised roaming customer care teams to improve service
for our roaming customers and the roll out of a number of best practice activities to a number of operating companies.
•
The focus of the terminals programme is to provide an end to end process for delivering terminals to our customers, driving benefits from scale and reduced time to
market. At present, the procurement of approximately four out of five handsets in the Group's mobile operating subsidiaries and joint venture in Italy is negotiated globally, providing the Group with scale advantages. In addition, complexity in
handsets is being reduced by standardising components and the move to a smaller number of technology platforms. It is expected that these activities, together with the launch of
18
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Business
exclusive
      Vodafone branded handsets, will drive incremental revenue benefits, as
    well as cost savings, through reduced churn and higher ARPU per handset.
•
Finally, the focus of the roaming initiative is to transform customers' roaming experience, primarily through reducing barriers to usage by providing better
value when they travel abroad. In addition, providing the best value inter-operator tariffs and consolidating certain roaming support activities are key goals of the programme. Vodafone Passport has been launched in 13 markets and over 6 million
customers have signed up to the service at 31 March 2006. Improvements in customer satisfaction and a higher proportion of customers roaming on to Vodafone networks have been observed.
Research
and Development ("R&D")
The
Group's R&D function comprises an international and multicultural team
for applied research in mobile telecommunications and its applications. The majority
of the
Group's R&D function is undertaken through the Group's centres
of excellence, located in Newbury, Maastricht, Munich, California, Milan and
Madrid, and in an associate centre in Paris belonging to Vodafone's associated
undertaking
in France, SFR. In the 2006 financial year, the R&D Centre in Tokyo was re-absorbed
into the Japanese operation and ceased to engage in research and development
for the Vodafone Group. The work of the centre in California was refocused to
activities where a presence in the US was essential in order to carry them out
and the size of the centre reduced accordingly. Early in 2006, the Group's
R&D function was given full responsibility for intellectual property across
the Vodafone
Group.
The Group's R&D function provides technical leadership, and a programme
of research support, into technology that will typically start to be used in
the business in three
years and beyond. Governance is provided by the Group R&D Board which is
chaired by the Group R&D Director and consists of the chief technology officers
from four of the mobile operating subsidiaries, together with the heads of Future
Products, Business
Strategy, Terminals and Technology Development.
The Group's R&D function focuses on applied research that is positioned
between the basic research undertaken by universities and commercial product
development. The emphasis
of the Group's R&D work programme is on providing technology analysis
and vision that can contribute directly to business decisions, enabling new applications
of mobile telecommunications, using new technology for new services, and research
for improving operational efficiency and quality of the Group's networks.
The work programme is organised into technology research and application research.
The technology research is concerned with core radio, network and service enabling
technologies. It includes business modelling techniques, application of social
science and analysis of disruptive technologies. The application research is
concerned with developing new business applications of radio based technologies
for commercial launch. Both areas of research are directed to expanding business
boundaries and opportunities through advances in technology, science and business
practice.
The work of the Group's R&D function is delivered through a series of
programmes with a substantial number of trials, demonstrations and protoypes.
All work is set in a business and social context. There is growing emphasis on
work that secures intellectual property rights or can otherwise lead to Vodafone
having stronger influence on the technology it will deploy in the future. In
addition, the Group's
R&D function provides leadership for funding research into health and safety
aspects of mobile telecommunications and technical leadership for the Group's
spectrum strategy.
The main themes currently being researched are the evolution of 3G, new application
areas for mobile communications and convergence with the internet. The basis
of the Group's 3G radio technology is W-CDMA and enhancements to provide
a higher speed version, usually referred to as HSDPA, or High-Speed Uplink Packet
Access ("HSUPA"), are currently being rolled out. The focus over the
last year has been on setting scientifically justifiable targets for the long
term evolution of the 3G radio interface and establishing these within the industry.
Evolutions to the core network based on ubiquitous use of internet protocols
and web services complement this, and are leading to a convergence of internet
and mobile technologies. Several internet based or converged services have been
prototyped and demonstrated within the Vodafone community. Significant R&D
effort has also been dedicated to transferring previous research results in mobile
TV to the Group's marketing and technology functions to provide the basis
for the Vodafone's mobile TV programme. Applications of mobile telecommunications
to health and well being, intelligent transport systems and the digital home
are also being
researched.
Much of the work of
the Group's R&D function is done in collaboration with others, both
within the Group and externally. Joint R&D facilities have been set up with
three major infrastructure suppliers. Infrastructure and handset suppliers work
with the Group's R&D function on many of its projects, from providing
equipment for trials, through coauthoring research reports, to being a partner
in some of the
R&D programmes. At the more academic end of the spectrum of applied research,
the Group's R&D function continues to develop relationships with a number
of universities. These relationships include sponsoring research students, collaboration
in European research activities, funding specialised research centres and working
with Vodafone funded chairs and readerships. This year, the Group's R&D
function hosted an Academic Conference where
it brought together its academic partners to consolidate its academic research
programme.
The R&D programme provides the Group with long term technical policy, strategy
and leadership, as well as providing technical underpinning for the Group's
public policies and
government relations, and is shared with all of the Group's mobile operations
and common functions. They are able to influence the programme through working
relationships that are designed to allow delivery of the results of the programme
directly into the business units where they are needed.
The Group expensed £206 million in the 2006 financial year on R&D,
compared with £198 million in the 2005 financial year, and capitalised
development costs of £10 million (2005: nil). Besides the core R&D
outlined above, this expenditure was incurred principally on developing new products
and services,
billing systems and network development.
Non-mobile Telecommunications
The
Group's non-mobile telecommunications businesses comprise interests in Arcor,
Neuf Cegetel and Bharti Airtel ("Bharti"), previously named Bharti
Tele-Ventures.
Arcor is the second largest fixed line telecommunications provider in Germany.
Based on its own Germany-wide voice and data network, Arcor offers its customers
a range of services for voice and data transfer, with a focus on direct access
based broadband and internet
protocol enabled virtual private network ("IP-VPN") products. The Group's
ownership interest in Arcor is 73.7% and it is accounted for as a
subsidiary.
The merger of Cegetel and Neuf Telecom completed on 22 August 2005, creating
the leading alternative operator for fixed telecommunication services in France,
offering a wide range of fixed line telephone services to residential and business
customers as well as special corporate services ranging from internet and customer
relations management to internet and intranet hosting services. The new entity,
Neuf Cegetel, has the largest alternative broadband network in France, with 70%
population coverage.
The Group's indirect ownership interest in Neuf Cegetel is 12.4% and it
is accounted for as an associated undertaking. In May 2006, the Group's
indirect
ownership interest increased to 15.4%.
Bharti is an Indian based mobile fixed line telecommunications operation with
three strategic business units: mobility, enterprise services and broadband.
The Group's ownership interest in Bharti is 10% and it is accounted for
as a joint venture.
History and Development of the Company
The
Company was incorporated under English law on 17 July 1984 as Racal Strategic
Radio Limited (registered number 1833679), as a subsidiary of Racal Electronics
Plc, and changed its name to Racal Telecommunications Group Limited in September
1985. In September 1988, it became Racal Telecom Limited then re-registered as
Racal Telecom Plc, a public limited company. In October 1988, approximately 20%
of the Company's capital was offered to the public. The Company was fully
demerged from Racal Electronics Plc and became an independent company in September
1991, at which time it changed
its name to Vodafone Group Plc.
Between 1991 and 1999, the Group consolidated its position in the United Kingdom
and enhanced its international interests through a series of transactions. At
31 March 1999, the Group had subsidiary
mobile network operating companies ("mobile operating subsidiaries")
in six countries (the UK, the Netherlands, Greece, Malta, Australia and New Zealand),
as well as equity interests in a further seven countries, and a proportionate
mobile customer base of 10.4 million.
The Group completed a number of business transactions between 1999 and 31 March
2003, which transformed
the Company into the world's leading international mobile telecommunications
company. The most significant transactions were:
•
The
       merger with AirTouch Communications, Inc. ("AirTouch"), which
       completed on 30
June 1999. The Company changed its name to Vodafone AirTouch Plc in June 1999.
       The combined Group had mobile operating subsidiaries in 10 countries,
       (adding Sweden, Portugal, Egypt and the US) and equity interests in an
       additional 12
countries.
•
The
       acquisition of Mannesmann AG ("Mannesmann"), which completed on 12 April 2000. Through this transaction the Group acquired subsidiaries in two of
Europe's most important markets, Germany and Italy, and increased the Group's indirect holding in SFR, a French mobile telecommunications operator. Subsequent to the acquisition, the Group sold a number of non-core businesses acquired as
part of the Mannesmann transaction. Following approval by its shareholders at the Annual General Meeting ("AGM"),
the Company reverted to its former name, Vodafone Group Plc, on 28 July 2000.
Vodafone
            Group Plc
Annual Report 2006
19
Back to Contents
Business Overview
continued
•
The combination of the Group's US mobile operations with those of Bell Atlantic Corporation and GTE Corporation to form the Cellco Partnership, which operates
under the name "Verizon Wireless", on 10 July 2000. The Group owns 45% of Verizon Wireless and accounts for it as an associated undertaking.
•
The acquisition of Airtel Móvil S.A., a mobile network operator in Spain, which became a subsidiary of the Group in December 2000.
•
The acquisition of Eircell Limited, a mobile network operator in Ireland, following a public offer for shares which closed in May 2001.
•
The acquisition of the Group's operations in Japan. The Group's initial investment in Japan resulted from the AirTouch merger and between the date of the
merger and October 2001, the Group increased its effective interest in the Japanese mobile telecommunications company, J-Phone Co. Ltd to 69.76% through a number of transactions. The Group also acquired a 66.7% stake in the fixed line operator,
Japan Telecom Co., Ltd ("Japan Telecom").
By 31 March 2003, the Group controlled mobile operations in 16 countries and held equity investments in mobile operations in a further 12 countries. The proportionate mobile customer
base was 119.7 million at that date.
Transactions since 31 March 2003
Acquisitions
Subsidiary undertakings
Turkey
On
13 December 2005, the Group announced it had agreed to acquire substantially
all the assets and
business of Telsim Mobil Telekomunikasyon ("Telsim") from the Turkish
Savings Deposit and Investment Fund. The transaction was completed on 24 May 2006, with cash paid of $4.67 billion (£2.6
billion). Telsim was consolidated as a subsidiary undertaking from that date.
Czech Republic and Romania
On 31 May 2005, the Company announced that its wholly owned subsidiary, Vodafone International Holdings B.V., had completed a transaction with Telesystem International Wireless Inc.
of Canada to acquire:
•
79.0%
       of the share capital of MobiFon S.A. ("MobiFon") in Romania, increasing the Group's
       ownership in MobiFon to approximately 99.1%;
and,
•
99.9%
       of the share capital of Oskar Mobil a.s. ("Oskar") in the Czech
    Republic
for cash consideration
of approximately $3.5 billion (£1.9 billion) which was funded from the Group's cash resources. In addition, the Group assumed approximately $1.0
billion (£0.6 billion) of net debt. The remaining 0.9% of MobiFon was acquired
in a separate transaction in the 2006 financial year.
On 1 February 2006, Oskar was renamed Vodafone Czech Republic.
Egypt
On
16 May 2003, the Group increased its shareholding in Vodafone Egypt from 60.0%
to 67.0%. Subsequently,
the Group has reduced its effective interest in Vodafone Egypt to 50.1%. Further
details are provided in "Performance – Financial Position and Resources – Option
agreements and similar arrangements" on
page 42.
Greece
On
1 December 2003, following the purchase of a 9.433% stake in Vodafone Greece
from Intracom S.A.,
the Group announced a public offer for all remaining shares not held by the Group.
As a result of the offer and subsequent market purchases, the Group increased
its effective interest in Vodafone Greece to 99.4% at 31 March 2004. The total
aggregate cash consideration paid in the 2004 financial year was £815 million.
Vodafone Greece's
shares were delisted from the Athens and London Stock Exchanges on 15 July 2004
and 20 August 2004 respectively.
Between 24 January 2005 and 31 March 2005, the Group acquired a further 0.4% interest in Vodafone Greece through private transactions at a price equal to the price paid in the public
offer.
Hungary
On
10 June 2003, the Group increased its stake in Vodafone Hungary to 87.9% by subscribing
for Antenna's share of an issue of 'C' shares.
In the first half
of the 2005 financial year, the Group subscribed for HUF 89,301 million (£248 million) shares in Vodafone Hungary, increasing the Group's
stake to 92.8%.
On
24 September 2004, the Group entered into a sale and purchase agreement to acquire the remaining 7.2% shareholding from Antenna. This transaction completed on
12 January 2005 with the effect that Vodafone Hungary became a wholly owned subsidiary of the Group.
Japan
During
  the 2004 financial year, the Group sold its interest in Japan Telecom, as described
  under "Disposals".
  In addition, J-Phone Co., Ltd was renamed Vodafone K.K. on 1 October 2003 and
  Japan Telecom Holdings Co., Ltd. was renamed Vodafone Holdings K.K. on
10
December 2003.
On 25 May 2004, the
Group's wholly owned subsidiary, Vodafone International Holdings B.V., announced offers for the shares not held by the Group in Vodafone Holdings K.K. and
Vodafone K.K. As a result of these offers, the Group increased its effective shareholding in Vodafone K.K. to 98.2% and its stake in Vodafone Holdings K.K. to 96.1% for a total consideration of £2.4
billion. On 1 October 2004, the merger of Vodafone K.K. and Vodafone Holdings
K.K. was completed and the Group held a 97.7% stake in the merged company, which
was renamed Vodafone K.K. Subsequently, on 1 August 2005, shares in Vodafone
K.K. were delisted from the Tokyo Stock
Exchange.
Vodafone K.K was subsequently
sold on 27 April 2006. Further details are provided in the section on "Disposals" below.
Malta
On
1 August 2003, the Group increased its shareholding in Vodafone Malta from 80%
to 100% by purchasing
Maltacom Plc's 20% interest in Vodafone Malta for cash consideration of
€
30 million.
The Netherlands
During
the 2004 financial year, the Group increased its effective interest in Vodafone
Netherlands to 99.9%
as a result of private transactions. The Group has exercised its rights under
Dutch law and initiated compulsory acquisition procedures in order to acquire
the remaining shares. Following these procedures, Vodafone Netherlands will become
a wholly owned subsidiary of the Group. Vodafone Netherlands' shares have
been de-listed from the Euronext Amsterdam Stock Exchange.
Portugal
Having
achieved an effective interest of greater than 90% at the start of the 2004 financial
year,
the Group implemented compulsory acquisition procedures to acquire the remaining
shares, which became effective on 21 May 2003, for a further consideration of £74
million. As a result, Vodafone Portugal became a wholly owned subsidiary of the
Group.
Sweden
Under compulsory acquisition procedures, on 15 March 2004, Vodafone Holdings Sweden AB obtained advanced access to an aggregate of 2,377,774 shares in Vodafone Sweden, giving the
Group ownership of, and title, to these shares.
On 31 March 2004, the Group increased its effective interest in Vodafone Sweden to 100% by the purchase of 1,320,000 shares which were held in treasury by Vodafone Sweden.
Vodafone Sweden was subsequently sold on 5 January 2006. Further details are given on page 115.
UK
On
22 September 2003, the Group acquired 100% of Singlepoint (4U) Limited for a
consideration of £417 million. In addition, as a result of a recommended cash offer announced on
5 August 2003, the Group acquired 98.92% of Project Telecom plc, after the offer was declared unconditional on 19 September 2003, and subsequently acquired the remaining 1.08% in November 2003, for a total consideration of £164 million. These
businesses have been integrated into the Group's UK operations.
Joint ventures
India
On
18 November 2005, the Group acquired a 5.61% direct interest in Bharti from Warburg
Pincus LLC
and, on 22 December 2005, the Group acquired a further 4.39% effective shareholding
in Bharti by subscribing for convertible debentures in Bharti Enterprises Private
Limited, bringing the Group's effective shareholding in Bharti to 10.0%. Bharti is a national mobile operator in India which also provides fixed-line services.
The total consideration paid for these transactions was Rs. 67 billion (£858
million).
South Africa
On
26 January 2006, the Group announced that its offer to acquire a 100% interest
in VenFin Limited
("VenFin") had become wholly unconditional. VenFin's principal asset
was a 15% stake in Vodacom Group (Pty) Limited ("Vodacom") and VenFin has disposed of substantially all of its assets other than its stake in Vodacom for a cash consideration of R5 billion (£0.5
billion) to a new company owned by certain of the former shareholders in VenFin.
At 31 March 2006, the Group held an effective economic interest in VenFin of
98.7% and an effective voting interest of 99.3%. On 20 April 2006, the Group
completed the compulsory acquisition of the
remaining minority shareholdings in VenFin, from which date the Group holds 100%
of the issued share capital of VenFin. As a result the Group holds 50% of the
share capital of Vodacom.
2
0
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Business
Associates
SFR and Cegetel
In
December 2003, in order to optimise cash flows between Cegetel Group and its
shareholders, SFR
was merged into Cegetel Group and this company was renamed SFR. The fixed line
businesses, Cegetel S.A. and Télécom Développement, previously controlled by SNCF, were merged to form Cegetel S.A.S. ("Cegetel"), a company in which SFR had a 65% stake, giving the Group an effective interest of 28.5%
at that date. The Group's interest in SFR remained at approximately 43.9%
as a result of this reorganisation.
On 11 May 2005, SFR announced an agreement to merge its fixed line business, Cegetel, with Neuf Telecom, subject to competition and regulatory authority and employee council approvals
which were received, and the transaction completed, on
22
August 2005. Under
the agreement, SFR purchased SNCF's 35% minority interest in Cegetel, according
to a pre-existing contract, and then contributed 100% of the capital of Cegetel
to Neuf Telecom. In return, SFR received a 28% interest in the combined entity,
Neuf Cegetel, together with a
€
380 million bond to be issued
by Neuf Cegetel, bringing the Group's effective shareholding in Neuf Cegetel
to 12.4%.
Disposals
During the three year period ended on 31 March 2006, the Group has also disposed of interests in a number of Group companies.
Japan
On
14 November 2003, Vodafone Holdings K.K. completed the disposal of its 100% interest
in Japan Telecom.
The Group ceased consolidating the results of Japan Telecom from 1 October 2003.
Receipts resulting from this transaction were ¥257.9 billion (£1.4 billion), comprising ¥178.9 billion (£1.0 billion) of cash, ¥32.5 billion (£0.2 billion) of transferable redeemable preferred equity and ¥46.5
billion (£0.2 billion) recoverable withholding tax, which was received during the 2005 financial year. In October 2004, the preferred equity was sold to the original purchaser for ¥33.9 billion (£0.2
billion).
On 17 March 2006,
the Group announced an agreement to sell its 97.7% holding in Vodafone Japan
to SoftBank. The transaction completed on 27 April 2006 for cash consideration
of
approximately ¥1.42 trillion (£6.9 billion) including the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately ¥0.23
trillion (£1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of ¥0.13 trillion (£0.6
billion).
Sweden
On
5 January 2006, the Group completed the disposal of its 100% interest in Vodafone
Sweden to Telenor
Mobile Holding AS ("Telenor"). Net cash proceeds after assumption of
net debt by Telenor were
€
970
million (£678 million).
Other disposals
During the 2004 financial year, the Group disposed of its interests in its associated undertakings in Mexico, Grupo Iusacell, and India, RPG Cellular.
On 26 January 2005,
the Group completed the disposal of a 16.9% stake in Vodafone Egypt to Telecom
Egypt, reducing the Group's effective interest to 50.1%.
Regulation
Introduction
The Group's operating companies are generally subject to regulation governing the operation of their business activities. Such regulation typically takes the form of industry
specific law and regulation covering telecommunications services and general competition (anti-trust) law applicable to all activities. Some regulation implements commitments made by Governments under the Basic Telecommunications Accord of the World
Trade Organisation to facilitate market entry and establish regulatory frameworks. The following section describes the regulatory framework and the key regulatory developments in the EU and selected countries in which the Group has significant
interests. Many of the regulatory developments reported in the following section involve ongoing proceedings or consideration of potential proceedings that have not reached a conclusion. Accordingly, the Group is unable to attach a specific level of
financial risk to the Group's performance from such matters.
European Union
Although
  most Member States of the EU ("Member States") have now implemented the EU Regulatory Framework for the communications sector ("the EU Framework"),
  which was adopted in 2002, there remain both ongoing and new infringement proceedings
  against a number of Member States for late or inadequate implementation.
The EU Framework consists
of four principal Directives outlining matters such as the objectives to be pursued
by national regulatory authorities ("NRAs"), the way in which
telecommunications operators are to be licensed, measures to be taken to protect
consumers and ensure universal provision of certain telecommunications services
and the terms and basis upon which operators interconnect and provide access
to each
other.
The EU Framework introduces
a number of important changes to the previous framework. It is intended to align
the techniques for defining where sector specific regulation may be applied and
the threshold for when such regulation can be applied with those already employed
in EU competition law. It is also intended to ensure greater consistency of approach
amongst NRAs within the Member States. All NRAs are required to take
utmost account of the list of markets which are specified by the European Commission
(the "Commission") in a Recommendation when deciding which markets to investigate. The first such Recommendation was published by the Commission in
February 2003 and includes markets at a wholesale level, for 'voice call termination on individual mobile networks' (the "call termination market"), the 'wholesale national market for international roaming' (the
"roaming market") and the wholesale market for 'access and call origination' (the "access market") on public mobile networks (together the "relevant markets"). NRAs may, with the Commission's
consent, also propose markets not included in the Recommendation. The Commission
will periodically review the Recommendation and the Commission has said it expects
to complete the first such review by the end of 2006. This review may lead to
an increase or a
decrease in the number and scope of markets subject to sector specific regulation.
Changes to the Recommendation are expected to become effective at the conclusion
of the review,
while any changes to the framework would become effective following their transposition into national law, from approximately 2010 onwards. So far, the
Commission has signalled that only minor changes to the regulatory framework will be considered. Whether the reviewed regulatory framework will increase or decrease the regulatory
burden on the Group will depend on the changes being adopted by the EU, the manner in which revised directives are subsequently implemented in Member States and how the revised regulatory framework will be applied by the respective NRAs.
Regulation, under
the EU Framework, can only be applied to undertakings with significant market
power ("SMP") (either individually or collectively) in the relevant markets,
subject to the Commission's consent. SMP under the EU Framework accords with the concept of "dominance" under
existing EU competition law. This generally implies a market share of at least
40%, although other factors may also be taken into consideration. The SMP threshold
under the previous framework required only a 25% share of the relevant market.
The Commission published SMP Guidelines in July 2002, which set out principles
for use by NRAs in the analysis of markets to
determine if undertakings have SMP under the EU Framework.
Spectrum
In September 2005, the Commission published proposals for spectrum reform across the EU, including proposals to allow holders of spectrum greater flexibility on the use to which it is
put, to allow holders to trade spectrum within a spectrum market and to improve harmonisation of certain bands. The Commission has proposed that these reforms be enacted by 2010 and has commenced a number of actions to pursue its proposals,
principally through the work of the Radio Spectrum Policy Group, a spectrum policy working group comprising the Commission and Member States.
Data retention
In 2005, the
European Parliament passed a new Directive on the retention of electronic communications
data for law enforcement purposes. Member States must now proceed with national
implementation. The Directive sets out the data that network operators and service
providers must store and, if requested, make available to law enforcement authorities
for the purpose of the prevention, investigation, detection and prosecution of
serious criminal offences. The initial invest
ment and recurring annual operating costs to the Group of this data retention requirement may be material. It depends on how it is implemented nationally and the extent to which the total of such costs
are compensated.
International Roaming
In February
2006, the Commission announced that it is proposing to enact new legislation
by way of a regulation under Article 95 of the EU Treaty (which would have immediate
effect) to reduce what it considers to be excessive prices charged by mobile
network operators for international roaming services. The Commission has concluded
its consultation on proposals for a regulation which it proposed would include
both retail price regulation aimed at ensuring that the costs of calls when roaming
are no more than equivalent domestic calls and the regulation of wholesale prices
charged between mobile operators for roaming services.
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Annual Report 2006
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Regulation
continued
On
      12 June 2006, the Commission
announced that it had 'fine tuned' its proposals so as to set the
maximum wholesale roaming charge for a local call (within the visited country)
at twice the average EU mobile termination rate and that the price of international
calls (from the visited country) will be set at three times the mobile termination
rate. Retail prices would be capped at wholesale rates plus an allowance for
retail costs of 20-30%. These proposals are now subject to consultation within
the European Commission before being presented for consideration by the European
Parliament and Member States, expected in July. The Commission expects the regulation
to become law during 2007. In July 2005, the Commission, supported by the European
Regulation Group ("ERG"), a body established under the EU Framework
and comprising all EU NRA's, also called for greater transparency of roaming
tariffs and in October 2005 launched a website to inform the public about roaming
tariffs within the EU. The website was updated in March 2006.
Anti-trust proceedings in relation to international roaming continue. In July 2004, the Commission issued a statement of objections, a document detailing its proposed findings,
  following its investigation into the UK market for wholesale international roaming and, in January 2005, the Commission issued a statement of objections following its investigation of the German market. In both cases, the statement of objections was
  addressed to both the national mobile operating subsidiaries and to the Company and, in both cases, Vodafone has responded both in writing and in oral proceedings.
The Commission's
proposed findings are that Vodafone has monopoly power over its wholesale customers
in both the UK and Germany. Vodafone UK and Vodafone Germany are alleged to have
engaged in excessive or unfair pricing. The Commission alleges that the abuse
occurred from 1997 to at least September 2003 in the UK and from 2000 to December
2003 in Germany. In the event the Commission finds that there has been a breach
of
competition law, it may impose a fine on any addressee who had committed the
breach.
Separately, the roaming market is one of the relevant markets in the Recommendation. In May 2005, the ERG adopted a common position on international roaming and several NRAs have
since then commenced their reviews of the roaming market but no NRA has proposed any regulation in this market. NRAs in Finland and Italy have concluded their market analysis and found no operator to have SMP. The French regulator has concluded that
no operator has SMP in the traditional sense but has proposed an extended definition of joint SMP which, if approved, could lead to a finding that all three French operators are jointly dominant. In addition, it has asked the Commission to take
action using instruments outside of the existing Framework.
Germany
Germany enacted
  a law implementing the EU Framework in June 2004. Vodafone Germany agreed to
  and subsequently reduced its mobile call termination rate with Deutsche Telekom
  for
incoming calls from Deutsche Telekom's network in December 2004 from14.32
eurocents to 13.2 eurocents and in December 2005 to 11.0 eurocents. The NRA has
found all mobile network operators to have SMP in the call termination market
and has announced that it will now propose ex-ante price regulation in the absence
of agreement to further reductions amongst the mobile network operators.
In February 2004, the NRA decided to award licences for 450MHz spectrum for the provision of public access mobile radio services. Vodafone Germany is appealing this decision.
The NRA has concluded that it will seek to harmonise the expiry of all 2G licences in 2016 and it will extend the terms of all licences ceasing prior to this date, including the
licence held by Vodafone subject to agreement on fees. The NRA has also decided to award certain 900MHz frequencies to O2 and EPlus. The NRA is now developing proposals to license new spectrum at 2.6 GHz, often referred to as the 3G extension band,
and is considering the auction of unused 3G spectrum at 2 GHz at the same time.
Italy
Italy enacted national law implementing the EU Framework in September 2003.
The NRA has concluded
that all mobile network operators have SMP in the call termination market and
has imposed obligations on Vodafone Italy of cost orientation, non-discrimination
and transparency. In September 2005, Vodafone Italy reduced its rates by 19%
from 14.95 eurocents to 12.10 eurocents. The NRA foresees further reductions
to 11.20 eurocents from 1 July 2006 and by 13% below the retail prices index
on both 1 July
2007 and 1 July 2008. Vodafone Italy has appealed the NRA's decision.
The NRA concluded its review of the access market in February 2006 and found that no operator had SMP but has said it will keep the market under review.
In March 2005, the
National Competition Authority ("NCA") in Italy conducted unannounced
inspections of the offices of mobile network operators in Italy, including Vodafone
Italy, seeking evidence of collusion following complaints by resellers and potential
MVNOs about alleged anti-competitive conduct. In November 2005, Vodafone Italy
received a further request for information from the NCA. In February 2006, the
NCA
decided to prolong the duration of the proceeding until December 2006. If the
NCA were to decide that there had been a breach of competition law, it would
be able to impose a fine on any operator who had committed the breach.
In
        March 2006, the NRA published for consultation the draft analysis of
  the roaming market and found no operator to have SMP.
Spain
Legislation implementing the EU Framework was enacted in November 2003, and the main sections of secondary legislation were approved during 2004 and 2005.
In September 2005,
the NRA announced a 10.57% reduction in Vodafone's mobile termination rates,
which was implemented by Vodafone Spain in November 2005. On 23 February 2006, the Spanish NRA found all mobile network operators to have SMP in the call termination market and imposed obligations including non-discrimination, cost orientation
and accounting separation on Vodafone Spain. A further reduction in rates is expected on 1 September 2006.
In February 2006, the NRA found that the three mobile network operators held a position of joint SMP in the access markets. This decision was reviewed by the European Commission and
the NRA allowed to proceed. The NRA has decided to impose a wholesale network access obligation at reasonable prices facilitating the entry of firms including MVNOs. Vodafone has appealed the decision of the NRA to find Vodafone as holding SMP in
the Spanish courts and has appealed the decision of the European Commission to allow the NRA to proceed to the Court of First Instance at Luxembourg.
United Kingdom
The new Communications Act, implementing the EU Framework, was enacted in July 2003.
The NRA conducted and concluded its review of the access market and found that no operator had SMP. The NRA found that all mobile network operators have SMP in the call termination
market and required Vodafone UK to reduce its termination charge for calls conveyed over the 2G network, with effect from September 2004, to a target average charge of 5.6 pence per minute. In December 2005, the NRA decided to maintain this price
control until 31 March 2007. The NRA has now embarked upon consultation on proposals to regulate the call termination market in respect of calls conveyed over both 2G and 3G networks from April 2007.
The NRA has proposed that 2G mobile frequencies will be tradable in 2007. The NRA is assessing whether holders of 2G spectrum can use it to provide 3G services. The NRA is also
consulting on a specific proposal to liberalise spectrum usage rights more generally.
United States
The Federal
  Communications Commission ("FCC"), the United States' NRA, commenced
  a Notice of Inquiry in 2004 into the level of termination rates charged by
  foreign mobile network operators to US international operators. The FCC sought
  inputs on the status of foreign mobile termination rates, including actions
  taken to date by foreign regulators to address the issue. This proceeding remains
  pending.
The NRA plans to award spectrum via auction in the 1.7 and 2.1 GHz bands beginning in June 2006.
Other Mobile Operations
Subsidiaries
Albania
In
    March 2006, the NRA issued for consultation to the operators its analysis
      of the mobile market
  in Albania, where the NRA proposed to designate the mobile networks operators
  including Vodafone Albania as having SMP in two markets: the call termination
  market and "the market of mobile services to end users". As a result,
  the NRA proposes obligations of transparency, non-discrimination and access
  obligations. The NRA may also impose retail price controls.
Vodafone Albania has
submitted its comments and objections on the NRA's market analysis. In addition,
Vodafone Albania has been notified by the NCA of an investigation into alleged
excessive pricing of mobile services. In May 2006, a Parliamentary Investigation
Commission was established to investigate the two mobile operators and to prepare
recommendations for liberalisation of the market.
Australia
The
NCA released its final decision on the regulation of mobile termination in June
2004. In its review,
it proposed that all mobile network operators have market power with respect
to mobile termination and proposed a pricing principle that requires mobile call
termination rates to fall from 21 Australian cents per minute to 12 Australian
cents per minute. Vodafone Australia's appeal of this decision was rejected. In
addition, Vodafone Australia lodged an "access undertaking" proposing
alternative rates, which the NCA has rejected. Vodafone Australia is now appealing
that decision. The NCA has also received various requests for adjudication of
disputes between Vodafone Australia and certain other operators, the results
of which will apply from the date the dispute was lodged with the NCA.
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Business
Czech Republic
In
February 2005, Vodafone Czech Republic was awarded a 3G licence. There have been
one or more complaints that the award may have breached EU competition law and
the Commission is
investigating the award process.
In May 2005, a new law implementing the EU Framework came into effect. Mobile
number portability was implemented in January 2006.
Egypt
Egypt
enacted a new telecommunications law in 2003, which gave new powers to the NRA
and imposed new obligations on licensees, including obligations in relation to
universal service provision. During 2004, Vodafone Egypt finalised an agreement
with the NRA that covered most of these new obligations while obtaining additional
spectrum in the 1800MHz range to facilitate business expansion.
In February 2005, the NRA announced proposals to award a third mobile licence.
The licence will be technology neutral and enable both 2G and 3G services. The
licence is expected to be awarded by September 2006. The NRA is planning to negotiate
the award of 3G licences to the two existing mobile network operators by September
2006. Mobile number portability and national roaming are expected to be implemented
in Egypt by April
2007.
Greece
Greece
enacted national law implementing the EU Framework in February 2006. Vodafone
Greece agreed to reduce its mobile termination rate from approximately 17.0 eurocents
to 14.5 eurocents per minute on 1 October 2004. The NRA has found all firms to
have SMP in the call termination market and has developed a Long Run Incremental
Cost
model ("LRIC model") to determine cost oriented mobile call termination
rates. Vodafone Greece will reduce its rate to 12.0 eurocents on 1 June 2006
and further reductions to approximately 10.0 eurocents will be made in one or
more steps prior to 1 June 2007.
In August 2005, each of the mobile network operators was fined
€
500,000 for failing to implement mobile number portability.
In March 2006, the three largest mobile network operators were found by the NRA
to have colluded in the setting of retail SMS prices and were fined
€
1 million each. Vodafone Greece has filed an administrative appeal.
In April 2005, the Council of State issued a judgement that base stations erected
by mobile operators prior to August 2002 did not meet legal requirements. The
new law seeks to remedy this but also prohibits the installation of base stations
in schools and hospitals and decreases EMF exposure limits.
In March 2005, Vodafone Greece was made aware of a security issue in its network.
Software foreign to the network, and capable of performing interception, had
been installed in the
network without Vodafone's knowledge. The software was created, supported
and maintained by an external supplier. The foreign software was removed without
delay and the Greek authorities promptly informed. The authorities conducted
investigations and subsequently made the matter public in February 2006. Since
then, further investigations have taken place and continue. Vodafone Greece is
co-operating with the Greek authorities.
Hungary
Hungary
implemented the EU Framework in January 2004 as part of its preparations for
joining the EU on 1 May 2004. In its review of the call termination market, the
NRA has proposed that all mobile network operators have SMP and has imposed obligations
of cost orientation, non-discrimination, accounting separation and transparency.
Vodafone Hungary has appealed this finding. In May 2005, Vodafone Hungary complied
with a requirement to reduce its call termination rates by 16%. Vodafone Hungary
has appealed the decision. In its review of the access market the NRA found that
no mobile network operator had SMP.
Ireland
Regulations
implementing the EU Framework were adopted in June 2003. In December
2005,
an appeal
court annulled the NRA's finding that Vodafone and O
2
have joint SMP
in
the access market.
In its review of the call termination market, the NRA has found that all mobile network operators have SMP. The NRA has imposed obligations of cost orientation and non-discrimination
on all operators and accounting separation and transparency on
Vodafone and O
2
. The
NRA is also considering the use of price controls. Vodafone Ireland
has agreed to reduce its rates by 11% below the retail price index per annum for the 24 months commencing January 2006.
In February 2006, the NRA withdrew a 3G licence it had awarded to Smart Telecom
in November 2005. Smart Telecom is appealing this decision.
Malta
Legislation
implementing the EU Framework in Malta was enacted during 2004. In the call termination
market, the NRA has found both mobile network operators as having SMP and has
imposed obligations on Vodafone Malta of cost orientation, non-discrimination,
accounting separation and transparency. Vodafone Malta reduced its mobile termination
rates by 5% from 11.5 eurocents per minute to 10.9 eurocents per minute in January
2006. The NRA is consulting on proposals to find Vodafone and Go Mobile, the
two Maltese mobile network operators, as having joint SMP in the access market,
with obligations to offer cost based access to MVNOs and indirect access to other
parties.
Vodafone Malta and Go Mobile were awarded 3G licences in August 2005. The third
3G licence remains unassigned. In October 2005, Vodafone Malta was awarded a
Broadband Wireless Access
frequency licence to operate a nationwide network.
Number portability was implemented on 31 March 2006.
The Netherlands
The
Netherlands implemented the EU Framework during 2004. In December 2003, mobile
network operators reached agreement with the NRA and the NCA to reduce mobile
call termination rates on 1 December 2004 from 15.4 eurocents per minute to 13.0
eurocents per minute, and on 1 December 2005 to 11.0 eurocents per minute. In
addition, the NRA has finalised its review of the call termination market and
has found that all operators have SMP and proposes remedies of cost orientation,
non-discrimination and transparency.
In its review of the access market, the NRA found that no mobile network operator
had SMP.
The Government is consulting on the extension or renewal of the existing 2G 900
MHz licences which expire in 2010.
New Zealand
The
NRA released a report proposing regulation of mobile termination rates, including
a rate reduction of 44% from 27 New Zealand cents per minute to 15 New Zealand
cents per minute and reducing further to 12 New Zealand cents per minute by 2010/2011.
These proposals were submitted to the Minister for approval, who has requested
the NRA to reconsider them. The NRA has done so and published a further position
in which its key findings remain essentially unchanged. These will now be resubmitted
to the Minister.
The NRA is also reviewing regulation of national roaming and co-location and
disputes submitted by Vodafone in relation to certain local interconnection services.
It has also recently announced a review to determine whether further regulation
or changes to existing regulation are necessary to promote competition in the
mobile services market.
The NRA has approved industry plans for the introduction of mobile number portability
and has set a date of April 2007 for its introduction.
The government is in the process of determining the price for renewal of 2G licences
which expire in 2011.
Portugal
Portugal
enacted national law implementing the EU Framework in February 2004. Following
its review of the call termination market, the NRA found all three mobile network
operators as having SMP and it has imposed obligations on Vodafone Portugal including
cost orientation, non-discrimination, accounting separation and transparency.
Vodafone Portugal reduced its mobile termination rates in July 2005 to 13.0 eurocents
per minute
and in January 2006 to 12.5 eurocents per minute.
Vodafone Portugal has requested the renewal of its 2G licence, which is due to
expire in October 2006, and the Government has proposed terms which remain largely
unchanged from those
which already apply to the licence.
Romania
In
March 2003, the
NRA determined MobiFon, the Group's subsidiary in Romania, as having SMP
in the national interconnection market so, under national law, MobiFon's
mobile termination rates were reduced from 12.0 US cents to 10.0 US cents. In
March 2005, the NRA granted a 3G licence to MobiFon.
Number portability will be implemented in Romania during the 2007 financial year,
with the obligation for all mobile and fixed operators to provide number portability
to customers no
later than June 2007.
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            Group Plc
Annual Report 2006
23
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Regulation
continued
Joint ventures
Fiji
Vodafone
Fiji has been required to make wholesale and retail price reductions of between
from 15% to 70% for a range of services. In December 2005, Vodafone Fiji issued
proceedings to prevent the government from issuing a second licence in breach
of Vodafone's
exclusivity rights.
India
From
1 March 2006, a new Interconnection Usage Charge regulation became effective.
Interconnection charges remained at Rs.0.30 per minute. However, changes were
made to reduce by 33% the total access deficit charge paid by operators to BSNL.
It is proposed that the charge be removed by the 2008 financial year.
In March 2006, the NRA recommended to the Department of Telecommunications that
mobile number portability should be implemented by 1 April 2007.
In November 2005, the government announced a lifting of the foreign direct investment
ceiling from 49% to 74% in the telecom sector, subject to certain preconditions.
The deadline for
compliance is 2 July 2006.
The Department of Telecommunications is expected to issue a new national spectrum
policy before the end of 2006. The new policy is expected to include plans for
allocation of 3G
spectrum.
Kenya
In
March 2006, the Kenyan Government issued a new Information and Communications
Bill for public comment. The new legislation will replace the Communication Act
1998, and is expected
to be finalised before the end of 2006.
In April 2006, the NRA commenced a review of interconnection and retail prices,
which may result in new interconnection and retail price regulations.
Safaricom, Vodafone's joint venture, has been given until December 2006
to relinquish 2.5MHz of paired 900 MHz spectrum in return for the allocation
of 1800MHz spectrum. It is proposed that the relinquished 900 MHz spectrum will
be given to a new third mobile licensee. In September 2005, Safaricom filed an
application for permanent 3G spectrum.
Poland
Legislation
implementing the EU Framework in Poland, which joined the EU on 1 May 2004, was
enacted during 2004 and the Polish NRA has commenced its market reviews. The
NRA, in its review of the call termination market, proposes to find all mobile
network operators to have SMP and to impose obligations of cost orientation,
transparency and non-discrimination.
The NRA awarded a fourth 3G licence in 2005, which Polkomtel is appealing. In
November 2005, the President of the NRA initiated the process to issue a new
2G licence. In January 2006, three companies submitted offers which are now under
consideration.
Mobile number portability for contract customers was implemented by the mobile
network operators in January 2006.
South Africa
A
new Electronic Communications Bill was adopted by Parliament in November 2005,
and is awaiting signature of the President. The new Bill will replace current
telecommunications and
broadcasting legislation.
An Information Communication Technologies Black Economic Empowerment Charter
(the "Charter") is expected to be finalised in 2006. The Charter will
set targets to evaluate a
company's contribution to Broad-Based Black Economic Empowerment, which
is the Government policy to increase economic empowerment of historically disadvantaged
individuals in South Africa. Targets will be set in terms of equity ownership,
management and control, employment, skills development, procurement, enterprise
development and corporate social investment.
In May 2005, the NRA commenced an investigation to assess whether Vodacom, the
Group's joint venture in South Africa, has major operator status, which
is similar to SMP, in the interconnection market. Vodacom has challenged the
grounds for this investigation in court, with a hearing expected before the end
of 2006.
In 2005, the NRA commenced investigations on mobile pricing and handset subsidies.
Separately, in May 2005, the NCA commenced an investigation into alleged excessive
pricing of mobile termination rates. These investigations remain ongoing. Vodafone
has been notified of the commencement of judicial review proceedings of the decision
under competition law approving its acquisition of VenFin.
Associated undertakings and investments
Belgium
Belgium
implemented the EU Framework during 2005. The NRA has commenced its market reviews
and in the call termination market proposes to find all operators as having SMP
and has commenced a process to develop a LRIC model to set rates. The proposals
include decreases of mobile termination rates of each firm by around 12% every
six months from July 2006 to July 2008, and confirms the existing degree of asymmetric
termination
rates between the three network mobile operators.
The NRA held an initial
consultation on the renewal of Vodafone's associated undertaking, Proximus',
2G licence which expires in 2010.
In January 2006, the NCA conducted unannounced inspections of the offices of
Proximus seeking evidence of anti-competitive behaviour in relation to the market
for corporate customers following a complaint by a competitor. These enquiries
are continuing. If the NCA decides that there had been a breach of competition
law, it would be able to impose a fine on any operator who had committed the
breach.
China
The
Chinese Government is expected to award 3G licences in 2006 and to implement
related changes to its telecommunications regulatory framework.
France
France
implemented the EU Framework during 2004. In its review of the call termination
market, the NRA concluded that all mobile network operators have SMP and imposed
obligations of cost orientation, non-discrimination, accounting separation and
transparency.
It set a price cap for Vodafone's associated undertaking, SFR, of 9.5 eurocents
per minute from 1 January 2006. During 2006, the NRA commenced work on a new
price cap
for the period from 1 January 2007.
In December 2003, a French consumers association lodged a complaint with the
NCA alleging collusion amongst the three French mobile operators on SMS retail
pricing. The NCA is still investigating this complaint. Independently, the NRA
has commenced a review of SMS termination and is consulting on proposals for
wholesale price regulation and the notification of a wholesale SMS market to
the Commission under the EU
Framework. If it proceeds, the French NRA would be the first to do so in Europe.
In its consultation, the NRA proposes a price cap for wholesale termination of
no greater than 2.5 eurocents per minute. In addition, following two complaints
against SFR and Orange France, the NRA ordered Bouygues and SFR, and Bouygues
and Orange, respectively, to reduce their symmetric wholesale SMS termination
rates to 4.3 eurocents per
message with effect from 1 July 2005.
In December 2005, the NCA decided that SFR and the other mobile network operators
had contravened competition law during the period from 1997 to 2003 by sharing
information and during the period from 2000 to 2002 by entering into an agreement
aimed at stabilising the development of market shares. SFR has been fined
€
220 million. SFR has appealed against this decision.
Following the NRA's review of the access market, the NRA proposed that all
three mobile network operators, including SFR, had joint SMP in the market and
it proposed access obligations as a remedy. The proposals were notified to the
Commission in April 2005 but
the NRA has subsequently withdrawn its proposals.
Switzerland
In
April 2005, the
Swiss NCA issued proposals finding that Swisscom Mobile, Vodafone's associated
undertaking, had abused a dominant position in the call termination market. In
April 2006, the NCA announced that it intends to fine Swisscom Mobile CHF489
million (£216 million). Additional interconnection disputes between Swisscom
Mobile and its
mobile competitors are pending.
In July 2005, the Swiss NCA started a preliminary investigation concerning access
to mobile networks. At the end of November 2005, the Swiss NRA commenced a process
to award three licences for broadband wireless access and Swisscom Mobile is
participating in an auction which will take place in the summer of 2006.
24
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    Group Plc
Annual Report 2006
Back to Contents
Performance
Contents
Page
Performance Introduction
25
Critical Accounting Estimates
26
Key Performance Indicators
29
Operating Results
30
– Group
    Overview
30
– Review
    of Operations
32
– US
    GAAP Reconciliation
36
– Summary
    of Key Performance Indicators for Principal Markets
37
Financial Position and Resources
38
– Balance
    Sheet
38
– Equity
    Dividends
38
– Contractual
    Obligations
39
– Contingencies
39
– Liquidity
    and Capital Resources
39
Risk Factors, Trends and Outlook
43
Cautionary Statement Regarding Forward-Looking Statements
46
Non-GAAP Information
47
Definition of Terms
49
Introduction
The
following discussion is based on the Consolidated Financial Statements included
elsewhere in this Annual Report.
On 19 July 2002, the European Parliament adopted Regulation No. 1606/2002 requiring
listed companies in the Member States of the European Union to prepare their
Consolidated Financial Statements in accordance with IFRS from 2005. This is
the first time the Company's Annual Report has been prepared under IFRS.
Consequently, financial information for the year ended 31 March 2005, presented
as comparative figures in this report, has been restated from UK GAAP in accordance
with IFRS, as disclosed in note
40 to the Consolidated Financial Statements.
The Consolidated Financial Statements, which are prepared in accordance with
IFRS, differ in certain significant respects from US GAAP. Reconciliations of
the material differences in the IFRS Consolidated Financial Statements to US
GAAP are disclosed in note 38 to the
Consolidated Financial Statements, "US GAAP information".
The Group faces a number of significant risks that may impact on its future performance
and activities.
Please see "Risk Factors, Trends and Outlook".
Foreign Currency Translation
The
Company publishes its Consolidated Financial Statements in pounds sterling. However,
the majority
of the Company's subsidiaries, joint ventures and associated undertakings
report their revenue, costs, assets and liabilities in currencies other than
pounds sterling and the Company translates the revenue, costs, assets and liabilities
of those subsidiaries, joint ventures and associated undertakings into pounds
sterling when preparing its Consolidated Financial Statements. Consequently,
fluctuations in the value of pounds sterling versus other currencies could materially
affect the amount of these items in the Consolidated Financial Statements, even
if their
value
has not changed in their original currency.
The following table sets out the pounds sterling exchange rates of the other
principal currencies
of the Group, being: "euros", "
€
" or "eurocents", the currency of the EU Member States which have adopted the euro as their currency,
and "US dollars", "$", "cents" or "¢",
the currency of the United States.
At
      / year ended 31 March
Change
Currency
      (=£1)
2006
2005
%
Average:
Euro
1.47
1.47
–
US dollar
1.79
1.84
(2.7
)
At 31 March:
Euro
1.43
1.46
(2.1
)
US dollar
1.74
1.89
(7.9
)
Merely
    for convenience, this Annual Report contains translations of certain pounds
    sterling amounts into US dollars at specified rates. These translations should
    not be construed as representations that the pounds sterling amounts actually
    represent such US dollar amounts or could be converted into US dollars at
    the rate indicated or at any other rate. Unless otherwise indicated, the
    translations of pounds sterling into
US
dollars have been made at $1.7393: £1.00, the Noon Buying Rate in the City
of New York for cable transfers in sterling amounts as certified for customs
purposes by the Federal Reserve Bank of New York (the "Noon Buying Rate")
on 31
March 2006. The Noon Buying Rate on 26 May 2006 was $1.8566: £1.00.
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: £1.00,
to
two decimal places.
Years
      ended 31 March
Period
      end
Average
High
Low
2002
1.42
1.43
1.48
1.37
2003
1.58
1.54
1.65
1.43
2004
1.84
1.69
1.90
1.55
2005
1.89
1.85
1.96
1.75
2006
1.74
1.79
1.92
1.71
Month
High
Low
November 2005
1.78
1.71
December 2005
1.78
1.72
January 2006
1.79
1.74
February 2006
1.78
1.73
March 2006
1.76
1.73
April 2006
1.82
1.74
May 2006
(1)
1.89
1.83
Note:
(1)
In
        respect of May
2006, for the period from 1 May to 26 May 2006, inclusive.
Inflation
Inflation
has not
had a significant effect on the Group's results of operations and financial
condition during the two years ended 31 March 2006.
Presentation of Information
In
the discussion
of the Group's reported financial position and results, information in addition
to that contained within the Consolidated Financial Statements is presented.
Refer to page 49 for definition of terms.
Vodafone
            Group Plc
Annual Report 2006
25
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Critical Accounting Estimates
The Group
  prepares its Consolidated Financial Statements in accordance with IFRS, the
  application of which often requires judgements to be made by management when
  formulating the
Group's financial position and results. Under IFRS, the directors are required to adopt those accounting policies most appropriate to the Group's circumstances for the purpose of presenting fairly the Group's financial position,
financial performance and cash flows. The Group also prepares a reconciliation of the Group's revenue, net profit and shareholders' equity
between IFRS and US GAAP.
In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed
could materially affect the reported results or net asset position of the Group should it later be determined that a different choice would be more appropriate.
Management considers
the accounting estimates and assumptions discussed below to be its critical accounting
estimates and, accordingly, provides an explanation of each below. Where it is
considered that the Group's US GAAP accounting policies differ materially
from the IFRS accounting policy, a separate explanation is provided.
The discussion below
should also be read in conjunction with the Group's disclosure of significant IFRS accounting policies, which is provided in note 2 to the Consolidated
Financial Statements, "Significant accounting policies" and with the "Summary of differences between IFRS and US GAAP" provided
in note 38 to the Consolidated Financial Statements.
Management has discussed
its critical accounting estimates and associated disclosures with the Company's
Audit Committee.
Impairment reviews
Asset recoverability is an area involving management judgement, requiring assessment as to whether the carrying value of assets can be supported by the net present value of future
cash flows derived from such assets using cash flow projections which have been discounted at an appropriate rate. In calculating the net present value of the future cash flows, certain assumptions are required to be made in respect of highly
uncertain matters, as noted below.
IFRS requires management
to undertake an annual test for impairment of indefinite lived assets, and for
finite lived assets, to test for impairment if events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Group management
currently undertakes an annual impairment test covering goodwill and other indefinite
lived assets, and also reviews finite lived assets and
investments in associated undertakings at least annually to consider whether
a full impairment review is required. In the year to 31 March 2006, the Group
has recognised impairment losses amounting to £23,515 million relating to the
Group's mobile operations in Germany, Italy and Sweden, of which £23,000
million was recognised following completion of the annual impairment test.
US GAAP
Under US GAAP, the requirements for testing the recoverability of intangible assets and property, plant and equipment differ from IFRS. US GAAP requires the carrying value of such
assets with finite lives to be compared to undiscounted future cash flows over the remaining useful life of the primary asset of the asset group being tested for impairment, to determine if the asset or asset group is recoverable. If the carrying
value exceeds the undiscounted cash flows, the carrying value is not recoverable and the asset or asset group is written down to the net present value of future cash flows derived in a manner similar to IFRS.
For purposes of goodwill impairment testing under US GAAP, the fair value of a reporting unit including goodwill is compared to its carrying value. If the fair value of a reporting
unit is lower than its carrying value, the fair value of the goodwill within that reporting unit is compared with its respective carrying value, with any excess carrying value written off as an impairment. The fair value of the goodwill is the
difference between the fair value of the reporting unit and the fair value of the net assets of the reporting unit.
Following the issuance
of EITF Topic D-108, "Use of the Residual Method to Value Acquired Assets Other Than Goodwill", in the year ended 31 March 2005, the Group, in respect
of the indefinite lived licences in Verizon Wireless, was required to perform a transitional impairment test on indefinite lived intangible assets other than goodwill by comparing the carrying amount with the fair value of the asset determined on a
standalone basis. In the year ended 31 March 2005, the cumulative effect on net loss of adopting this standard was £6,177 million, net of taxes of £5,239
million.
Assumptions
There are a number of assumptions and estimates involved in calculating the net present value of future cash flows from the Group's businesses including management's
expectations of:
•
growth in EBITDA, calculated as adjusted operating profit before depreciation and amortisation;
•
timing and quantum of future capital expenditure;
•
uncertainty of future technological developments;
•
long term growth rates; and
•
the selection of discount rates to reflect the risks involved.
The Group prepares and internally approves formal ten-year plans for its businesses and uses these as the basis for its impairment reviews. Management uses the initial five years of
the plans, except in markets which are forecast to grow ahead of the long term growth rate for the market. In such cases, further years will be used until the forecast growth rate trends towards the long term growth rate, up to a maximum of ten
years.
For mobile businesses, a long term growth rate into perpetuity has been determined as the lower of:
•
the nominal GDP rates for the country of operation, using forecast nominal GDP rates from external sources; and
•
the long term compound annual growth rate in EBITDA implied by the business plan.
For
non-mobile businesses, no growth is expected beyond management's plans for
the initial five year period.
Changing the assumptions
selected by management, in particular the discount rate and growth rate assumptions
used in the cash flow projections, could significantly affect the
Group's results. The Group's review includes the key assumptions related
to sensitivity in the cash flow projections.
The following changes to the assumptions used in the impairment review would have (increased)/decreased the combined impairment loss recognised in the year ended
31
March
2006 in respect of the Group's mobile operations in Germany and Italy:
Increase by
1
/
2
%
Decrease by
1
/
2
%
£bn
£bn
Discount rate
(2.2
)
2.4
Budgeted EBITDA
(1)
0.3
(0.3
)
Capital expenditure
(2)
(0.2
)
0.2
Long term growth rate
2.9
(2.5
)
Notes:
(1)
Represents the compound annual growth rate for the initial five years of the Group's approved financial plans.
(2)
Represents capital expenditure as a percentage of revenue in the initial five years of the Group's approved plans.
These assumption changes in isolation would not have resulted in an impairment loss in any other of the Group's continuing operations.
US GAAP
Under US GAAP, the assumptions and estimates involved in reviewing for impairment are similar to IFRS, with the exception of the requirement to determine the primary asset of an asset
group. For asset groups represented by the Group's operating companies, the primary asset is determined as the 3G licence, except for operating companies where no 3G licence has been acquired, in which case the 2G licence is the primary asset.
If the primary asset of the Group's mobile operations in Germany were the 2G rather than the 3G licence, the carrying value would exceed the undiscounted cash flows and result in a significant impairment loss.
Business combinations
Goodwill
  only arises in business combinations. The amount of goodwill initially recognised
  is dependent on the allocation of the purchase price to the fair value of the
  identifiable assets acquired and the liabilities assumed. The determination
  of the fair value of the assets and liabilities is based, to a considerable
  extent, on management's judgement.
Allocation of the purchase price affects the results of the Group as finite lived intangible assets are amortised whereas indefinite lived intangible assets, including goodwill, are
not amortised, and could result in differing amortisation charges based on the allocation to indefinite lived and finite lived intangible assets.
On the acquisition of mobile network operators, the identifiable intangible assets may include licences, customer bases and brands. The fair value of these assets is
26
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
determined by discounting estimated future net cash flows generated by the asset, assuming no active market for the assets exist. The use of different assumptions for the expectations
of future cash flows and the discount rate would change the valuation of the intangible assets.
IFRS
On transition to IFRS, the Group has elected not to apply IFRS 3, "Business
Combinations", retrospectively as the difficulty in applying these requirements to the large number of business combinations completed by the Group from incorporation through to
1 April 2004 exceeded any potential benefits. Goodwill arising before the date of transition to IFRS, after adjusting for items including the impact of proportionate consolidation of joint ventures, amounted to £78,753 million.
If the Group had elected to apply the accounting for business combinations retrospectively, it may have led to an increase or decrease in goodwill and increase in licences, customer
bases, brands and related deferred tax liabilities recognised on acquisition.
US GAAP
For acquisitions prior to 29 September 2004, the key difference from IFRS is that for the acquisition of mobile network businesses, the excess of purchase price over the fair value of
the identifiable assets and liabilities acquired other than licences ("the residual") was allocated to licences, as opposed to goodwill. However, subsequent to this date and due to the prohibition of this method of accounting following the
issuance of EITF Topic D-108 licences are valued using a direct valuation approach, with the residual being allocated to goodwill. For other acquisitions, the residual has been and will continue to be allocated to goodwill.
Intangible assets, excluding goodwill
Other intangible
  assets include the Group's aggregate amounts spent on the acquisition
  of 2G and 3G licences, customer bases, brands, computer software and development
  costs. These assets arise from both separate purchases and from acquisition
  as part of business combinations.
The relative size
of the Group's intangible assets, excluding goodwill, makes the judgements surrounding the estimated useful lives and basis of amortisation critical to the
Group's financial position and performance.
At 31 March 2006,
intangible assets, excluding goodwill, amounted to £16,512 million (2005: £16,149 million) and represented 13.0% (2005: 11.0%) of the Group's
total
assets.
Estimation of useful life
The useful life used to amortise intangible assets relates to the future performance of the assets acquired and management's judgement of the period over which economic benefit
will be derived from the asset. The basis for determining the useful life for the most significant categories of intangible assets is as follows:
Licences and spectrum fees
The estimated useful life is, generally, the term of the licence, unless there is a presumption of renewal at negligible cost. Using the licence term reflects the period over which
the Group will receive economic benefit. For technology specific licences with a presumption of renewal at negligible cost, the estimated useful economic life reflects the Group's expectation of the period over which the Group will continue to
receive economic benefit from the licence. The economic lives are periodically reviewed, taking into consideration such factors as changes in technology. Historically, any changes to economic lives have not been material following these
reviews.
Customer bases
The estimated useful life principally reflects management's view of the average economic life of the customer base and is assessed by reference to customer churn rates. An
increase in churn rates may lead to a reduction in the useful life and an increase in the amortisation charge. Historically, changes to churn rates have been insufficient to impact the useful life.
Capitalised software
The useful life is determined by management at the time the software is acquired and brought into use and is regularly reviewed for appropriateness. For computer software licences,
the useful life represents management's view of expected benefits over which the Group will receive benefits from the software, but not exceeding the licence term. For unique software products controlled by the Group, the life is based on
historical experience with similar products as well as anticipation of future events, which may impact their life, such as changes in technology.
Historically, changes in useful lives have not resulted in material changes to the Group's amortisation charge.
Property, plant and equipment
Property, plant
and equipment also represent a significant proportion of the asset base of the
Group and hence the estimates and assumptions made to determine their carrying
value and
related depreciation are critical to the Group's financial position and performance
.
Estimation of useful life
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life.
Increasing an asset's expected life or its residual value would result in a reduced depreciation charge in the Group's income statement.
The useful lives of Group assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. Furthermore, network infrastructure cannot be depreciated over a period that extends beyond the expiry of the associated
licence under which the operator provides telecommunications services.
Historically, changes in useful lives have not resulted in material changes to the Group's depreciation charge.
Cost capitalisation
Cost includes
  the total purchase price and labour costs associated with the Group's
  own employees to the extent that they are directly attributable to construction
  costs, or where they comprise a proportion of a department directly engaged
  in the purchase or installation of a fixed asset. Management judgement is involved
  in determining the appropriate internal costs to capitalise and the amounts
  involved. For the year
ended
31 March 2006, internal
costs capitalised represented approximately 7% of expenditure on property, plant
and equipment and computer software and approximately 1% of total operating
expenses
.
Taxation
The Group's tax charge on ordinary activities is the sum of the total current and deferred tax charges. The calculation of the Group's total tax charge necessarily involves
a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final
resolution of some of these items may give rise to material profit and loss and/or cash flow variances. See "Financial Position and Resources".
The growth in complexity
of the Group's structure following its rapid expansion geographically has
made the degree of estimation and judgement more challenging. The resolution
of issues is not always within the control of the Group and it is often dependent
on the efficiency of the legal processes in the relevant taxing jurisdictions
in which the Group operates. Issues can, and often do, take many years to resolve.
Payments in respect of tax liabilities for an accounting period result from payments on account and on the final resolution of open items. As a result, there can be substantial
differences between the tax charge in the income statement and tax payments.
Significant items
on which the Group has exercised accounting judgement include a provision in
respect of an enquiry from UK HM Revenue and Customs with regard to the Controlled
Foreign Companies tax legislation (see note 31 to the Consolidated Financial
Statements), legal proceedings to recover VAT in relation to 3G licence fees
(see "Contingencies" on page 39) and potential tax losses in respect of a write down
in the value of investments in Germany (see note 6 to the Consolidated Financial Statements). The amounts recognised in the Consolidated Financial Statements in respect of each matter are derived from the Group's best estimation and judgement,
as described above. However, the inherent uncertainty regarding the outcome of these items means eventual resolution could differ from the accounting estimates and therefore impact the Group's
results and cash flows.
Recognition of deferred tax assets
The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future, against which the
reversal of temporary differences can be deducted. Recognition, therefore, involves judgement regarding the future financial performance of the particular legal entity or tax group in which the deferred tax asset has been recognised.
Historical differences between forecast and actual taxable profits have not resulted in material adjustments to the recognition of deferred tax assets.
Vodafone
            Group Plc
Annual Report 2006
27
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Critical Accounting Estimates
continued
Revenue recognition and presentation
Revenue from mobile telecommunications comprises amounts charged to customers in respect of monthly access charges, airtime charges, messaging, the provision of other mobile
telecommunications services, including data services and information provision, fees for connecting users of other fixed line and mobile networks to the Group's network, revenue from the sale of equipment, including handsets, and revenue
arising from the Group's Partner Market agreements.
Deferral period
Customer connection fees, when combined with related equipment revenue, in excess of the fair value of the equipment are deferred and recognised over the expected life of the customer
relationship. The life is determined by reference to historical customer churn rates. An increase in churn rates would reduce the customer relationship life and accelerate revenue recognition. Historically, changes in churn rates have been
insufficient to impact the expected customer relationship life.
Any excess upgrade or tariff migration fees over the fair value of equipment provided are deferred over the average upgrade or tariff migration period as appropriate. This time period
is calculated based on historical activity of customers who upgrade or change tariffs. An increase in the time period would extend the period over which revenue is recognised.
Presentation
When deciding
  the most appropriate basis for presenting revenue or costs of revenue, both
  the legal form and substance of the agreement between the Group and its business
  partners are
reviewed to determine each party's respective role in the transaction.
Where the Group's
role in a transaction is that of principal, revenue is recognised on a gross
basis. This requires turnover to comprise the gross value of the transaction
billed to the customer, after trade discounts, with any related expenditure charged
as an operating cost.
Where the Group's
role in a transaction is that of an agent, revenue is recognised on a net basis,
with turnover representing the margin earned.
Allowance for bad and doubtful debts
The allowance
  for bad and doubtful debts reflects management's estimate of losses arising from the failure or inability of the Group's customers to make required payments.
The estimate is based on the ageing of customer accounts, customer credit worthiness and the Group's
historical write-off experience.
Changes to the allowance
may be required if the financial condition of the Group's customers improves
or deteriorates. An improvement in financial condition may result in lower actual
write-offs.
Historically, changes
to the estimate of losses have not been material to the Group's financial
position and results.
28
Vodafone
    Group Plc
Annual Report 2006
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Performance
Key Peformance Indicators
The Board
  and the Executive Committee monitor the Group's progress against its strategic objectives and the financial performance of the Group's
  operations on a regular basis. Performance is assessed against the strategy,
  budgets and forecasts using financial and non-financial measures.
The following
    details certain of the most significant Key Performance Indicators (KPIs)
    used by the Group, their purpose, the basis of calculation and the source
    of the underlying data. Definitions of certain of the terms are provided on
    page 49.
Financial
The Group uses
the following primary measures to assess the performance of the Group and its
individual businesses. A number of these measures at a Group level are presented
on an organic basis, which provides an assessment of underlying growth excluding
the effect of business acquisitions and disposals and changes in exchange rates.
Financial measures presented on an organic basis are non-GAAP financial measures.
For more
information on these measures and the basis of calculation of organic growth
see "Non-GAAP Information" on pages 47 to 48.
Revenue
Revenue
    and its growth for the Group, and its principal markets, covering the 2006
    and 2005 financial year, is provided in "Operating Results" on pages
    30 to 37.
Revenue
    and revenue growth are used for internal performance analysis and by investors
    to assess progress against outlook statements provided externally by the Group.
Adjusted operating profit
Adjusted operating
profit is used by the Group for internal performance analysis as it represents
the underlying operating profitability of the Group's businesses. The measure is
presented both for the Group and its principal markets, covering the 2006 and 2005 financial years, in "Operating Results" on pages 30 to 37. The basis of calculation, along with an analysis of why the Group believes it is a useful
measure, is provided in the section titled "Non-GAAP Information" on
pages 47 to 48.
Free cash flow
Free cash flow
provides an evaluation of the Group's liquidity and the cash generated by the Group's operations. The calculation of free cash flow, along with an analysis of
why the Group believes it is a useful measure, is provided in the section titled "Non-GAAP Information" on
pages 47 to 48. The Group has provided an outlook for free cash flow in the 2007
financial year on page 45.
Adjusted earnings per share
Adjusted earnings per share is calculated as basic earnings per share from continuing operations excluding items such as impairment losses, non-recurring amounts related to business
acquisitions and disposals and changes in the fair value of equity put rights and similar arrangements. The items excluded from basic earnings per share for the 2006 and 2005 financial years and the per share impact are detailed in note 8 to the
Consolidated Financial Statements.
Operational
Certain operational
measures relating to customers and revenue for the Group's mobile telecommunications business and its principal makets, covering the 2006 and 2005 financial
years, are provided in "Operating Results" on pages 30 to 37, with
the exception of customer delight. These measures are commonly used in the mobile
telecommunications industry.
Customers
The Group highly
values its customers and strives to delight them. As a result, customer based
KPIs are important measures for internal performance analysis. Management also
believes that certain of these measures provide useful information for investors
regarding the success of the Group's customer acquisition and retention activities. For customer numbers and churn, the data used to calculate the KPIs is derived from the
customer relationship management systems of each of the Group's operations.
Customer numbers
The
    Group prepares customer numbers on a venture and proportionate basis for its
    mobile operations. A summary of the customer numbers on both bases is presented
    in "Business – Business Overview – Summary of Group mobile
    telecommunications businesses at 31 March 2006" on page 13.
Churn
Churn
    represents the disconnection rate of customers in each of the Group's
    mobile operations. It is calculated as the total gross customer disconnections
    in the period
divided
    by the average total customers in the period. Churn rates stated in this Annual
    Report are calculated for the entire financial year.
Customer delight
The
    Group uses a proprietary 'customer delight' system to track customer
    satisfaction across its controlled markets and jointly controlled market in
    Italy. More information on the benefits of the system are provided in "Business
    – Business Overview – Products and services – Customer strategy
    and management" on page 17.
Customer
    delight is measured by an index based on the results of surveys performed
    by an external research company which cover all aspects of service provided
    by Vodafone and incorporates the results of the relative satisfaction of the
    customers of competitors. An overall index for the Group is calculated by
    weighting the results for each of the Group's operations based on service
    revenue.
Increased
    customer expectations are putting a downward pressure on customer satisfaction
    for the Group and many of its competitors. Despite this trend, the Group outperformed
    its target for customer delight in the 2006 financial year and the index was
    broadly stable compared to the previous financial year.
Revenue based measures
Management believes that revenue based measures provide useful information for investors regarding trends in customer revenue derived from mobile telecommunications services and the
extent to which customers use mobile services.
The data
    used to calculate these KPIs is derived from a number of sources. Financial
    information, such as service revenue, is extracted from the Group's financial
    systems, whilst operational information, including customer and usage metrics,
    is derived from the customer relationship management and billing systems of
    each of the Group's operations.
Average
revenue per user ("ARPU")
ARPU
    represents the average revenue by customers over a period and is calculated
    as service revenue, being total revenue excluding equipment revenue and connection
    fees, divided by the weighted average number of customers during the period.
    ARPU disclosed in this Annual Report is presented on a monthly basis and represents
    the total ARPU for the financial year divided by twelve.
Voice usage
Voice
    usage is the total number of minutes of voice use on the Group's mobile
    networks, including calls made by the Group's customers, often referred
    to as outgoing usage, and calls received by the Group's customers, often
    referred to as incoming usage.
Messaging and data revenue
Messaging
    and data revenue represent the non-voice element of service revenue. In recent
    years, these revenues have grown at a faster rate than voice revenue as customers
    increasingly use these services and new products and services have been launched.
    As competition has intensified in many of the markets in which the Group operates
    and penetration rates have increased, the ability of the Group to grow messaging
    and data revenue has become an increasingly important factor, internally and
    for investors.
Costs
One Vodafone
The
    One Vodafone initiatives are targeted at achieving savings in operating expenses
    and capital expenditure and are discussed in more detail on pages 18 to 19.
    Reporting on performance against these targets will be disclosed in the Annual
    Report for the year ending 31 March 2008, including reconciliations to amounts
    included in the Consolidated Financial Statements.
Capitalised fixed asset additions as a percentage of mobile revenue
In
    the mobile telecommunications industry, significant investment is required
    to roll out network infrastructure in order to improve service capacity. This
    performance indicator is used by Vodafone management to compare capitalised
    fixed asset additions to prior periods and internal forecasts. Management
    believes that this measure provides useful information for investors to measure
    the capital investment required to support revenue growth.
This measure
    is calculated as capitalised fixed asset additions for the mobile telecommunications
    business (note 3 to the Consolidated Financial Statements) as a percentage
    of the revenue of the mobile telecommunications businesses (note 3 to the
    Consolidated Financial Statements). In the 2006 financial year, capitalised
    fixed asset additions as a percentage of mobile revenue was 13.7% compared
    with 16.4% for the previous financial year.
Vodafone
            Group Plc
Annual Report 2006
29
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Operating
  Results
Group
  Overview
Years ended 31 March
2006
2005
£m
£m
Revenue
Mobile telecommunications
28,137
25,740
Other operations
1,339
1,095
Less: revenue between mobile and other operations
(126
)
(157
)
29,350
26,678
Operating (loss)/profit
(14,084
)
7,878
Mobile
      telecommunications
(1)
9,280
8,334
Other
      operations
(1)
119
19
Adjusted
      operating profit
(1)
9,399
8,353
– Impairment of intangible assets
(23,515
)
(475
)
– Other
15
–
– Non-operating income in associated undertakings
17
–
Non-operating income and expense
(2
)
(7
)
Investment income
353
294
Financing costs
(1,120
)
(880
)
(Loss)/profit before taxation
(14,853
)
7,285
Tax on profit
(2,380)
(1,869
)
(Loss)/profit for the financial year from continuing operations
(17,233
)
5,416
Loss)/profit for the financial year from discontinued operations
(4,588
)
1,102
(Loss)/profit for the financial year
(21,821
)
6,518
Note:
(1)
Before
          impairment losses and non-recurring amounts related to business acquisitions
          and disposals.
2006 financial year compared to 2005 financial year
Revenue increased
    by 10.0% to £29,350 million in the year to 31 March 2006, resulting from organic growth of 7.5%, favourable movements in exchange rates of 0.5% and a further
  2.0% from the acquisitions in the Czech Republic, India, Romania and South Africa, partially offset by the impact of the disposal of the Group's
  operations in Sweden.
The Group
    recorded an impairment charge to the carrying value of goodwill in the Group's
    operations in Germany (£19,400 million) and Italy (£3,600 million)
    reflecting a revision of the Group's view of the prospects for these
    businesses, particularly in the medium to long term, and a further £515
    million was recorded in respect of the Swedish business following the announcement
    of its disposal. This was the primary reason for the operating loss of £14,084
    million in the current financial year compared with an operating profit of
    £7,878 million in the previous financial year. Adjusted operating profit
    increased by 12.5% to £9,399 million, with organic growth of 11.4%,
    following organic growth of 10.3% in the Group's mobile business. Favourable
    exchange rate movements benefited reported growth for the Group by 1.0% whilst
    the net impact of acquisitions and disposals improved reported growth by 0.1%.
Mobile telecommunications
Years ended 31 March
2006
2005
Change
£m
£m
%
Total service revenue
25,881
23,547
9.9
Other
        revenue
(1)
2,256
2,193
2.9
28,137
25,740
9.3
Trading results
Voice services
21,493
19,888
8.1
Non-voice services
– Messaging
3,556
3,143
13.1
– Data
832
516
61.2
Total service revenue
25,881
23,547
9.9
Net other
        revenue
(1)
532
546
(2.6
)
Interconnect costs
(4,210
)
(3,815
)
10.4
Other direct costs
(1,936
)
(1,756
)
10.3
Net acquisition
        costs
(1)
(1,541
)
(1,446
)
6.6
Net retention
        costs
(1)
(1,444
)
(1,234
)
17.0
Payroll
(2,127
)
(2,009
)
5.9
Other operating expenses
(3,625
)
(3,264
)
11.1
Acquired intangibles amortisation
(157
)
–
Purchased licence amortisation
(947
)
(919
)
3.0
Depreciation and other amortisation
(3,581
)
(3,341
)
7.2
Share
      of operating profit in associated undertakings
2,435
2,025
20.2
Adjusted
        operating profit
(2)
9,280
8,334
11.4
Notes:
(1)
Revenue
        for the mobile telecommunications business includes revenue of £1,724
        million (2005: £1,647 million) which has been deducted from acquisition
        and retention costs and excluded from other revenue in the trading results.
(2)
Before
        impairment losses and non-recurring amounts related to acquisitions and
        disposals.
30
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Revenue
Revenue
    in the mobile business increased by 9.3%, or 6.7% on an organic basis, for
    the year to 31 March 2006 due to a 7.2% increase in service revenue on an
    organic basis offset by lower growth in other revenue. Service revenue growth
    reflected a 15.2% organic increase in the average customer base of the controlled
    mobile networks and the Group's share of jointly controlled mobile networks, offset by the impact of lower
ARPU in a number of the Group's markets. Competitive pressures have intensified
recently following a significant number of new market entrants and greater competition
from incumbents, specifically in the mature markets of Western Europe. Many of
these markets have penetration rates over 100% which, together with termination
rate cuts and a higher proportion of lower spending prepaid customers across
the Group, have led to the decline in ARPU. The estimated impact of termination
rate cuts
on the growth in service revenue in the current financial year is as follows:
Impact
        of
Service
        revenue
termination
growth
        excluding
Reported
        growth
rate
        cut on
the
        impact of
in
        service
service
        revenue
termination
        rate
revenue
growth
cuts
%
%
%
Germany
1.4
1.7
3.1
Italy
1.9
3.4
5.3
Spain
22.0
2.9
24.9
UK
1.6
1.6
3.2
Other
        Mobile Operations
22.3
2.7
25.0
Mobile
          telecommunications business
9.9
2.4
12.3
Voice revenue
    increased by 8.1%, or by 5.3% on an organic basis, due to by the growth in
    average customers and a successful usage stimulation programme leading to
    24.6% growth in total minutes, or 18.9% on an organic basis, offset by tariff
    declines from competition and termination rate cuts. Revenue from outgoing
    calls was the primary driver of voice revenue growth, whilst incoming voice
    revenue increased marginally as a significant increase in the proportion of
    incoming calls from other mobile networks was offset by the impact of termination
    rate cuts, particularly in the second half of the current financial year.
Messaging
    revenue rose by 13.1%, or 10.6% on an organic basis, as an increase in the
    average customer base and the number of messages sent per customer was offset
    by tariff declines.
The success
    of 3G, Vodafone live! and offerings in the business segment, including Vodafone
    Mobile Connect data cards and BlackBerry from Vodafone, were the main contributors
    to a 61.2% increase, or 60.4% on an organic basis, in non-messaging data revenue.
    An additional 6,321,000 3G devices were registered on the Group's networks
    in the current financial year, bringing the total to 7,721,000 at 31 March
    2006, including 660,000 business devices such as Vodafone Mobile Connect 3G/GPRS
    data cards. Prior to the announcement of the disposal of Vodafone Japan in
    March 2006, the Group registered its ten millionth consumer 3G device, when
    including 100% of the devices in Italy.
Other
    revenue increased to £2,256 million, principally due to growth in revenue
    related to acquisition and retention activities in Spain, partially offset
    by a reduction in net other revenue, resulting principally from to a fall
    in the number of customers connected to non-Vodafone networks in the UK. A
    32.5% rise in the number of gross customer additions, partially offset by
    a fall in the average revenue for handset sales to new prepaid customers and
    a 24.3% increase in the number of upgrades, led to a 4.7% growth in revenue
    related to acquisition and retention activities to £1,724 million.
Adjusted operating profit
Adjusted
    operating profit increased by 11.4% to £9,280 million, comprising organic
    growth of 10.3% and favourable exchange rate movements of 1.1%.
Interconnect
    costs increased by 7.2% on an organic basis, as strong growth in outgoing
    voice usage was partially offset by cuts in termination rates in a number
    of markets and an increased proportion of outgoing traffic being to other
    Vodafone customers, which does not result in interconnect expense. The rise
    in the number of upgrades and the increased cost of upgrading customers to
    3G were the primary contributors to an 9.4% organic growth in acquisition
    and retention costs, net of attributable revenue, to £2,985 million.
    Payroll and other operating expenses as a percentage of service revenue continued
    to fall, reaching 22.2% for the year to 31 March 2006 compared to 22.4% for
    the previous financial year.
The charge
    relating to the amortisation of acquired intangible assets was £157
    million following acquisitions in the Czech Republic, India, Romania and South
    Africa in the current financial year. Depreciation and other amortisation
    increased, principally due to the net impact of the acquisitions and disposal
    in the current financial year and the ongoing expansion of 3G networks.
The Group's
    share of the result in associated undertakings, before non-recurring amounts
    related to business acquisitions and disposals, grew by 20.2% after the deduction
    of interest, tax and minority interest, and 16.8% before the deductions, primarily
    due to growth at Verizon Wireless in the US. The Group's share of the
    result in Verizon Wireless increased by 25.5% to £2,112 million, before
    deduction of interest, tax and minority interest, with a particularly strong
    performance in the second half of the current financial year.
Non-mobile telecommunications
Revenue
    from Other Operations increased by 22.3% to £1,339 million for the current
    financial year, principally due to growth in Arcor, the Group's non-mobile
    operation in Germany. Adjusted operating profit increased to £119 million
    from £19 million in the previous financial year as a result of the revenue
    growth and cost efficiencies in Arcor and a reduced loss in the Group's
    other non-mobile operations.
Impairment losses
The
    Group recorded an impairment charge to the carrying value of goodwill in the
    current financial year of £23,515 million in respect of the Group's
    operations in Germany (£19,400 million) and Italy (£3,600 million)
    reflecting a revision of the Group's view of the prospects for these
    businesses, particularly in the medium to long term, and a further £515
    million in respect of the Swedish business following the announcement of its
    disposal. An impairment loss was recognised in the previous financial year
    of £475 million in respect of the Group's Swedish operations and
    reflected fierce competition along with onerous 3G licence obligations.
Investment
        income and financing costs
Years
        ended 31 March
2006
2005
Change
£m
£m
%
Net
          financing costs before dividends from investments
(318
)
(293
)
8.5
Potential
          interest charges arising on settlement of outstanding tax issues
(329
)
(245
)
34.3
Changes
          in the fair value of equity put rights and similar arrangements
(161
)
(67
)
140.3
Dividends
        from investments
41
19
115.8
Net
        financing costs
(767
)
(586
)
30.9
Net financing
    costs before dividends from investments increased by 8.5% to £318 million
    as an increase in average net debt compared to the previous year was partially
    offset by gains on mark-to-market adjustments on financial instruments in
    the current financial year.
Potential
    interest charges arising on the settlement of outstanding tax issues represents
    the Group's estimate of any interest that may be due to tax authorities
    when the issues are settled. This charge varies due to the interest rates
    applied by the tax authorities, the timing of tax payments and status of discussions
    on tax issues with the relevant tax authorities. At 31 March 2006, the provision
    for potential interest charges arising on settlement of outstanding tax issues
    was £896 million.
The change
    in the fair value of equity put rights and similar arrangements comprises
    the fair value movement in relation to the potential put rights held by Telecom
    Egypt over its 25.5% interest in Vodafone Egypt and the fair value of a financial
    liability in relation to the minority partners of Arcor, the Group's
    non-mobile operation in Germany. Further details in respect of these arrangements
    are provided in the section titled "Liquidity and Capital Resources –
    Option agreements" and in note 24 to the Consolidated Financial Statements.
Taxation
The effective
tax rate for the year to 31 March 2006 is (16.0)% compared to 25.7% for the prior
year. The negative effective tax rate arises as a result of the £23,515 million
impairment losses recognised in the current financial year. These losses are not expected to be deductible for tax purposes so are not expected to create a future benefit. The effective tax rate, exclusive of the impairment losses, is 27.5% for the
current financial year, which is lower than the Group's weighted average tax rate as a result of the repurchase of shares in Vodafone Italy and favourable tax settlements, but has increased compared to the previous year as the prior year
benefited from finalising the reorganisation of the Group's German operations.
Basic loss per share
Basic earnings per share from continuing operations fell from 8.12 pence to a loss per share of 27.66 pence for the current year. The basic loss per share is after a charge of 37.56
pence per share in relation to an impairment of the carrying value of goodwill, a further charge of 0.26 pence per share for the change in fair value of equity put rights and similar arrangements, and a credit of 0.05 pence per share for
non-recurring amounts relating to business acquisitions and disposals.
Vodafone
            Group Plc
Annual Report 2006
31
Back to Contents
Operating
  Results
continued
(Loss)/profit
  for the financial year from discontinued operations
Years
        ended 31 March
2006
2005
Change
£m
£m
%
Revenue
(1)
7,268
7,396
(1.7
)
Adjusted
        operating profit
455
664
Impairment
        loss
(4,900
)
–
Operating
        (loss)/profit
(4,445
)
664
Non-operating
        income and expense
–
13
Net
        financing costs
(3
)
(11
)
(Loss)/profit
        before taxation
(4,448
)
666
Tax
        on (loss)/profit
(1)
(140
)
436
(Loss)/profit
        for the financial year
(4,588
)
1,102
Note
(1)
Included
        a deferred tax credit of £599 million in the year to 31 March 2005
        in respect of losses in Vodafone Holdings K.K. which became eligible for
        offset against profits of Vodafone K.K. following the merger of the two
        entities on 1 October 2004.
On 17 March 2006, the Group announced that an agreement had been reached to sell its 97.7% interest in Vodafone Japan to SoftBank. This resulted in the Group's operations in
  Japan being classified as an asset held for sale and being presented as a discontinued operation. The disposal was completed on 27 April 2006.
Following the announcement on 17 March 2006, the Group recognised an impairment loss of £4,900 million in respect of Vodafone Japan. The recoverable amount of Vodafone Japan was
the fair value less costs to sell.
On completion of the disposal of Vodafone Japan in April 2006, a loss on disposal was recognised as the difference between the final sale proceeds less costs to sell and the carrying
value at the date of disposal. The loss on disposal includes, among other items, the cumulative exchange differences in respect of Vodafone Japan previously recognised in equity from 1 April 2004 through to completion.
Review
    of Operations
Please refer
    to the Summary of Key Performance Indicators for Principal Markets on page
    37 and note 3 to the Consolidated Financial Statements.
Mobile
    businesses
Vodafone
    operating companies are licensed on an arm's length basis to use the
    Vodafone brand and related trademarks. These arrangements have been reviewed
    and the charges for the use of the Vodafone brand and related trademarks were
    revised with effect from 1 April 2005 to reflect the positioning of the brand
    in the current markets. There is no material impact on the Group's overall
    operating profit. The impact of the change is to reduce individual operating
    company profitability with a corresponding increase in the profit attributable
    to the common functions segment, which forms part of the mobile telecommunications
    business.
In April 2006, the Group announced changes to the organisational structure of its operations, effective from 1 May 2006. The following results are presented in accordance with the
organisation structure in place for the year to 31 March 2006.
Germany
Years
        ended 31 March
Local
currency
2006
2005
Change
change
£m
£m
%
%
Revenue
(1)
5,754
5,684
1.2
1.2
Trading
        results
Voice
        services
4,304
4,358
(1.2
)
(1.3
)
Non-voice
        services
–
        Messaging
836
800
4.5
4.6
–
        Data
254
162
56.8
56.8
Total
        service revenue
5,394
5,320
1.4
1.4
Net
        other revenue
(1)
114
122
(6.6
)
(6.9
)
Interconnect
        costs
(732
)
(734
)
(0.3
)
(0.3
)
Other
        direct costs
(281
)
(314
)
(10.5
)
(10.3
)
Net
        acquisition costs
(1)
(366
)
(348
)
5.2
5.2
Net
        retention costs
(1)
(349
)
(330
)
5.8
5.6
Payroll
(412
)
(425
)
(3.1
)
(3.0
)
Other
        operating
expenses
(665
)
(646
)
2.9
3.1
Purchased
        licence
amortisation
(342
)
(342
)
–
–
Depreciation
        and other
amortisation
(2)
(865
)
(830
)
4.2
4.3
Adjusted
        operating
profit
(2)
1,496
1,473
1.6
1.3
Notes:
(1)
Revenue includes revenue of £246 million (2005: £242 million) which has been excluded from other revenue and deducted from acquisition and retention
costs in the trading results.
(2)
Before impairment losses
The German market has seen recent intensification in price competition, principally from new market entrants, together with high levels of penetration and further reductions in
termination rates. Despite this, Vodafone has continued to lead the market in the number of 3G customers, and has launched innovative products such as mobile TV and Vodafone Zuhause, which allows users to replace fixed line networks installed in
their homes. In addition, Vodafone launched HSDPA technology in March 2006.
Total revenue increased by 1.2% as the benefits of a larger customer base and an increase in non-voice service revenue were partly offset by reduced voice pricing, in response to
aggressive competition, and a further termination rate cut in December 2005 from 13.2 to 11.0 eurocents per minute. The average customer base grew by 8.4% due to the attractiveness of promotions, including an offer which allowed prepaid customers to
pay a fixed charge for calls to fixed lines and other Vodafone customers, which was taken up by more than one and a quarter million customers, and new products such as Vodafone Zuhause, which had 448,000 registered customers at 31 March 2006. New prepaid tariffs, including a low priced internet only offer, and ongoing promotional activity, particularly in the last four months of the year, contributed to
total voice usage increasing by 13.7%. Excluding the termination rate cut in December 2005, service revenue growth would have been 3.1% in local currency. A further cut in termination rates is currently expected by the end of 2006.
Non-voice service revenue increased by 13.4% in local currency, driven primarily by strong growth of 56.8% in non-messaging data revenue. Vodafone maintained its leadership in the 3G
market, demonstrated by Vodafone live! with 3G customers generating over 3.1 million full track music downloads in the current financial year for Vodafone, more than any other mobile network operator in Germany. The number of active Vodafone live!
devices continued to increase, with 28.3% growth in the year. In the business segment, there were 241,000 Vodafone Mobile Connect 3G/GPRS data cards and 226,000 wireless push e-mail enabled devices registered on the network at 31 March 2006.
Messaging revenue increased 4.6%, in local currency, mainly as a result of promotional activities.
Overall cost efficiencies, counteracted by investments in customer acquisition and retention and an increase in Group charges for the use of the brand and related trademarks, which
represented 1.1% of service revenue, lead to an increase in adjusted operating profit of 1.3% in local currency to £1,496 million. Growth in 3G customers and increased gross additions, partially offset by a rise in the proportion of low
subsidy prepaid
32
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
additions,
    led to a 5.2% increase in net acquisition costs. Interconnect costs decreased
    by 0.3%, as the termination rate cuts in the current and previous financial
    years more than offset the effect of higher voice usage. An increase in the
    number of customer upgrades resulted in a 5.6% increase in net retention costs.
    Adjusted operating profit was further impacted by additional depreciation
    charges from continued 3G network deployment.
Italy
Years
        ended 31 March
Local
currency
2006
2005
Change
change
£m
£m
%
%
Revenue
(1)
4,363
4,273
2.1
2.0
Trading
        results
Voice
        services
3,472
3,492
(0.6
)
(0.7
)
Non-voice
        services
–
        Messaging
600
532
12.8
12.9
–
        Data
98
67
46.3
45.2
Total
        service revenue
4,170
4,091
1.9
1.8
Net
        other revenue
(1)
15
14
7.1
2.8
Interconnect
        costs
(681
)
(701
)
(2.9
)
(3.1
)
Other
        direct costs
(241
)
(232
)
3.9
3.8
Net
        acquisition costs
(1)
(78
)
(71
)
9.9
9.6
Net
        retention costs
(1)
(93
)
(74
)
25.7
25.1
Payroll
(250
)
(250
)
–
–
Other
        operating
expenses
(572
)
(497
)
15.1
15.1
Purchased
        licence
amortisation
(74
)
(74
)
–
–
Depreciation
        and other
amortisation
(3)
(524
)
(512
)
2.3
2.0
Adjusted
        operating
profit
(3)
1,672
1,694
(1.3
)
(1.3
)
Notes
(1)
Revenue
        includes revenue of £178 million (2005: £168 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention costs in the trading results.
(2)
Italy
        is a joint venture and is proportionately consolidated by the Group and
        hence the results reported represent the Group's average effective
        interest, being 76.8%.
(3)
Before
        impairment losses
Competition in Italy has continued to intensify with the mobile network operators competing aggressively on subsidies and, increasingly, on price, particularly in the second half of
  the year. Vodafone achieved average customer growth of 6.9% driven by successful promotions despite the competitive environment and a market penetration rate well in excess of 100% due to customers having more than one SIM.
In local currency, total revenue rose by 2.0%, reflecting the increase in service revenue which was driven primarily by continuing growth in non-voice services as voice revenue
declined marginally following an average 20.5% reduction in termination rates from September 2005. Excluding the impact of the termination rate cut, service revenue increased by 5.2% in local currency. Strong promotional activities, for example free
calls after the first minute and free text messages for a small activation fee which were taken up by more than ten million customers, and the increase in the customer base led to a rise of 5.1% in voice usage and a 41.7% increase in messaging,
including a 261% growth in MMS usage. An increase in the number of SIMs per user and competitive pressures led to a reduction in activity rates, especially in the second half of the year, and an increase in blended churn from 17.2% to 18.7%.
Non-voice service revenue rose by 16.5% in local currency, primarily driven by a 12.9% rise in messaging revenue. Increased penetration of 3G devices, a focus on retaining high value
customers, increased usage of Vodafone live! and Vodafone Mobile Connect data cards and attractive data promotions were the main contributors to 45.2% growth in non-messaging data revenue.
In local currency, adjusted operating profit fell by 1.3% due to the impact of an increase in Group charges for the use of brand and related trademarks, which represented
approximately 1.1% of service revenue, investment in customer acquisition and retention and higher marketing spend in response to the competitive pressures, along with the increased costs from the continued roll out of the 3G network. Strong
upgrade
activities
    and a focus on high value customers in response to aggressive competition
    led to the rise in retention costs, whilst handset promotions adversely impacted
    acquisition costs, especially in the first half of the year. Interconnect
    costs fell due to the cut in termination rates combined with promotions focusing
    on calls to other Vodafone and fixed-line numbers, which incur lower interconnect
    costs, especially in the second half of the year. Other direct costs increased
    3.8%, primarily as a result of an increase in content provision costs arising
    from the increase in data service usage.
Spain
Years
        ended 31 March
Local
currency
2006
2005
Change
change
£m
£m
%
%
Revenue
(1)
3,995
3,261
22.5
22.6
Trading
        results
Voice
        services
3,093
2,558
20.9
20.9
Non-voice
        services
–
        Messaging
417
340
22.6
23.0
–
        Data
105
65
61.5
62.1
Total
        service revenue
3,615
2,963
22.0
22.0
Net
        other revenue
(1)
6
2
Interconnect
        costs
(634
)
(540
)
17.4
17.5
Other
        direct costs
(329
)
(263
)
25.1
25.4
Net
        acquisition costs
(1)
(274
)
(246
)
11.4
11.7
Net
        retention costs
(1)
(249
)
(172
)
44.8
45.3
Payroll
(151
)
(140
)
7.9
7.8
Other
        operating
expenses
(611
)
(468
)
30.6
30.7
Purchased
        licence
amortisation
(69
)
(69
)
–
–
Depreciation
        and other
amortisation
(336
)
(292
)
15.1
14.8
Adjusted
        operating
profit
968
775
24.9
24.6
Note
(1)
Revenue
        includes revenue of £374 million (2005: £296 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention costs in the trading results.
Vodafone continued to perform strongly in Spain, in revenue growth and profitability, despite an increasingly competitive market, through promotions and competitive tariffs attracting
  new customers and encouraging prepaid customers to migrate to contract tariffs.
Total revenue for the financial year increased by 22.6% in local currency, due principally to a rise in service revenue achieved from an 18.5% growth in the average customer base and
an improvement in ARPU, notwithstanding a 10.6% cut in the termination rate in November 2005. The launch of attractive tariffs, successful promotional campaigns and the offer of an appealing handset portfolio increased the average customer base and
encouraged a further increase in the proportion of contract customers from 46.9% at 31 March 2005 to 49.6% at 31 March 2006. These factors contributed to a 34.0% increase in total voice usage compared with the previous financial year and a reduction
in blended churn from 21.9% at 31 March 2005 to 20.9% at 31 March 2006.
The principal driver behind the 23.0% growth in messaging revenue in local currency was a 23.1% increase in messaging usage due to the higher customer base and targeted promotions.
The growth of 62.1% in non-messaging data revenue was due to an increase of 814,000 in the number of registered 3G devices and the success of data solutions, which have contributed to Vodafone leading the 3G market in Spain, along with an 84.3%
increase in the number of Vodafone live! devices.
Adjusted operating profit increased as a percentage of service revenue, as cost reductions were only partially offset by the impact of the increased Group charge for use of the brand
and related trademarks. Interconnect costs fell as a proportion of service revenue, due to promotions which encouraged calls to be made to Vodafone and fixed-line numbers, which incur lower interconnect costs, and the cut in termination rates. A
higher proportion of prepaid gross customer additions, which have a lower per unit acquisition cost, particularly in the first half of the financial year led to acquisition costs
Vodafone
    Group Plc
Annual Report 2006
33
Back to Contents
Operating
  Results
continued
falling
    as a proportion of service revenue compared to the previous financial year.
    These relative cost reductions were offset by the cost of upgrading customers
    to 3G handsets, migrating prepaid customers to contract tariffs and a larger
    customer base, reflected in a 45.3% increase in net retention costs. Other
    direct costs increased mainly due to increased content provision costs resulting
    from higher usage of the expanded offering on the Vodafone live! platform.
United
    Kingdom
Years
        ended 31 March
2006
2005
Change
£m
£m
%
Revenue
(1)
5,048
5,065
(0.3
)
Trading
        results
Voice
        services
3,642
3,672
(0.8
)
Non-voice
        services
–
        Messaging
705
684
3.1
–
        Data
221
142
55.6
Total
        service revenue
4,568
4,498
1.6
Net
        other revenue
(1)
135
177
(23.7
)
Interconnect
        costs
(862
)
(771
)
11.8
Other
        direct costs
(355
)
(367
)
(3.3
)
Net
        acquisition costs
(1)
(380
)
(388
)
(2.1
)
Net
        retention costs
(1)
(395
)
(391
)
1.0
Payroll
(391
)
(403
)
(3.0
)
Other
        operating expenses
(697
)
(646
)
7.9
Purchased
        licence amortisation
(333
)
(333
)
–
Depreciation
        and other amortisation
(592
)
(597
)
(0.8
)
Adjusted
        operating profit
698
779
(10.4
)
Note
(1)
Revenue
        includes revenue of £345 million (2005: £390 million) which
        has been excluded from other revenue and deducted from acquisition and
        retention
costs in the trading results.
Vodafone UK continued to see strong growth in its customer base, without a corresponding increase in acquisition and retention investment, despite the UK being one of the most
  competitive markets in which the Group operates, with mobile penetration rates in excess of 100%. Enhanced data offerings led to strong growth in non-messaging data revenue and Vodafone now has over 1 million registered 3G devices.
Total revenue fell by 0.3%, as a 1.6% increase in service revenue was offset by a fall in equipment and other revenue. Service revenue grew by 3.2%, excluding the effect of the
September 2004 termination rate cut, benefiting from an increase in average customers of 7.8%, partially offset by falling ARPU, notwithstanding a rise in usage. New customer offerings, including Stop the Clock, helped to stimulate a 10.1% increase
in total voice usage, but this was offset by changes in prices during the year to improve competitiveness in the market, leading to an overall 0.8% decrease in voice revenue, which grew by 1.2% excluding the effect of the termination rate cut. A
continuing focus on customer retention and an increasing proportion of customers on 18 month contracts had a positive impact on contract customer churn which fell from 22.7% to 21.5%, although blended churn increased to 32.1%, including the effect
of increased prepaid customer self-upgrades, consistent with market trends.
Non-voice service revenue increased by 12.1%, driven largely by the success of enhanced data offerings. Growth of 843,000 over the financial year in registered 3G devices and the
continued success of Vodafone Mobile Connect data cards and wireless push e-mail devices contributed to non-messaging data revenue increasing by 55.6%. Combined voice and messaging promotions led to an 18.1% increase in total messaging usage,
although this was partially offset by a decline in the average price per message, and resulted in a 3.1% rise in messaging revenue.
The rise in interconnect costs and the cost of one-off call centre closures, as well as an increase in Group charges for use of the brand and related trademarks, which represented
approximately 1.1% of service revenue, were partially offset by efficiencies in overheads and acquisition and retention costs, leading to a fall in adjusted operating profit of 10.3%. Interconnect costs increased by 11.8%, following an increase in
total usage, combined with an increase in the proportion of voice calls made to customers of other mobile network operators, as customers optimise cross-network bundled tariffs, partially offset by the termination rate cut. Despite higher gross
additions and upgrades, especially in the first half of the year, and a higher proportion of 3G connections, acquisition and retention costs were kept stable with the prior year, mainly due to an
increase
    in direct sales activity, SIM only promotions and a higher proportion of prepaid
    additions with lower subsidies. Payroll was 3% lower than the prior year and
    other operating expenses were lower than the prior year, excluding one-off
    call centre closures and the increase in Group charges for use of the brand
    and related trademarks, driven by the continued benefits of a structured cost
    reduction plan.
US
    – Verizon Wireless
Years
        ended 31 March
Local
currency
2006
2005
Change
change
£m
£m
%
%
Adjusted
        operating
profit
1,732
1,354
27.9
23.8
Share
        of result in
associated
undertaking
Operating
        profit
2,112
1,683
25.5
21.5
Interest
(204
)
(187
)
9.1
5.4
Tax
(116
)
(91
)
27.5
22.5
Minority
        interest
(60
)
(51
)
17.6
14.9
1,732
1,354
27.9
23.8
The US mobile telecommunications market has seen continued significant growth in customer numbers over the last twelve months, with penetration reaching an estimated 72% at 31 March
2006. In this environment, Verizon Wireless continued to increase its market share and improve its market leading margin performance.
Verizon Wireless outperformed its competitors with record net additions, increasing the proportionate customer base by 16.6% over the financial year to 23,530,000 and improving
customer market share to approximately 25% whilst also maintaining the proportion of contract customers at 94.5% of the total customer base at 31 March 2006. The strong customer performance benefited from continuing improvements in customer loyalty,
with a reduction in blended churn of 2.5 percentage points to 14.7% compared with the previous financial year, the lowest in the US mobile telecommunications industry.
In local currency, Verizon Wireless' revenue increased by 14.9% due to the strong customer growth, partially offset by a fall in ARPU of 1.9%. The ARPU decline primarily resulted
from an increase in the proportion of family share customers and voice tariff pricing changes implemented early in 2005, which included increases in the size of bundled minute plans.
Non-voice service revenue increased by more than 100% compared with the previous financial year and represented 8.9% of service revenue for the current year. Continued increases in
messaging revenues were augmented by strong growth from data products, including Verizon Wireless' consumer broadband multimedia offering, wireless email and broadband data card service. Verizon Wireless' next-generation EV-DO network is
currently available to about 150 million people, approximately half the US population. This investment has paved the way for the launch of innovative new data services in areas such as full track music downloads and location based services.
In local currency, the Group's share of Verizon Wireless' operating profit increased by 21.5%, driven by revenue growth and maintaining a leading cost efficiency position in
the US market. The Group's share of the tax attributable to Verizon Wireless of £116 million for the year ended 31 March 2006 relates only to the corporate entities held by the Verizon Wireless partnership. The tax attributable to the
Group's share of the partnership's pre-tax profit is included within the Group tax charge.
Vodafone and Verizon Wireless are engaged in a number of joint projects, predominantly focusing upon bringing global services to their customers. The financial year saw the
introduction of two new data roaming services for Verizon Wireless customers, in addition to the launch of new handsets for the global phone proposition, all of which leverage the Vodafone footprint.
Verizon Wireless continued to strengthen its spectrum position with the completion of the purchase of several key spectrum licences, including licences from Nextwave, Leap Wireless
and Metro PCS and through participation in the FCC's Auction 58, which took place in February 2005, with licences being granted in May 2005.
34
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Other
  Mobile Operations
Years
        ended 31 March
Local
currency
2006
2005
Change
change
£m
£m
%
%
Total
        revenue
Subsidiaries
7,812
6,474
20.7
Joint
        ventures
1,470
1,184
24.2
Less:
        intra-segment revenue
(32
)
(21
)
52.4
9,250
7,637
21.1
12.6
Adjusted
        operating
profit
(2)
Subsidiaries
1,445
1,368
5.6
Joint
        ventures
363
305
19.0
Associated
undertakings
695
671
3.6
2,503
2,344
6.8
6.4
Trading
        results
Voice
        services
7,313
6,070
20.5
Non-voice
        services
–
        Messaging
1,017
790
28.7
–
        Data
200
113
77.0
Total
        service revenue
8,530
6,973
22.3
Net
        other revenue
(1)
137
110
24.5
Interconnect
        costs
(1,698
)
(1,367
)
24.2
Other
        direct costs
(727
)
(568
)
28.0
Net
        acquisition costs
(1)
(443
)
(393
)
12.7
Net
        retention costs
(1)
(358
)
(267
)
34.1
Payroll
(624
)
(531
)
17.5
Other
        operating
expenses
(2)
(1,531
)
(1,140
)
34.3
Acquired
        intangibles
amortisation
(157
)
–
Purchased
        licence
amortisation
(129
)
(100
)
29.0
Depreciation
        and other
amortisation
(2)
(1,192
)
(1,044
)
14.2
Share
        of result in
associates
(2)
695
671
3.6
Adjusted
        operating
profit
(2)
2,503
2,344
6.8
6.4
Share in result of associates
Operating
        profit
(2)
1,044
1,020
2.4
Interest
(20
)
(7
)
185.7
Tax
(329
)
(342
)
(3.8
)
695
671
3.6
Notes:
(1)
Revenue
      includes revenue of £583 million (2005: £554 million) which
      has been excluded from other revenue and deducted from acquisition and retention
      costs in the trading results.
(2)
Before
      impairment losses and non-recurring amounts related to acquisitions and
      disposals.
Total revenue for the Group's Other Mobile Operations increased by 21.1%, or 12.6% on an organic basis. The net impact of acquisitions in the Czech Republic, India, Romania and
South Africa and the disposal of the Group's Swedish operations during the year ended 31 March 2006 increased reported revenue growth by 6.8%. Favourable exchange rate movements accounted for 1.7% of the remaining difference between reported
and organic growth. The increase in total service revenue was principally driven by an increase in the average customer base of 26.5% excluding the impact of the acquisitions and disposal and of 44.0% including the impact of the acquisitions and
disposal. This effect was partially offset by cuts in termination rates in certain markets, reduced ARPU from the launch of more competitive tariffs and an increase in the number of lower usage prepaid customers.
Excluding
    the impact of termination rate cuts, service revenue growth would have been
    25.0%. Messaging and non-messaging data revenue grew strongly, increasing
    by 18.6% and 74.1%, respectively, on an organic basis and by 28.7% and 77.0%,
    respectively, including the impact of acquisitions, disposals and exchange
    rate movements.
Adjusted
    operating profit increased by 6.8%, or 6.4% on an organic basis, over the
    comparative period, with 0.5% of the difference due to the acquisitions and
    disposal in the current financial year, offset by 0.9% resulting from favourable
    foreign exchange rate movements. The reported growth in adjusted operating
    profit in the year was impacted by a reduction in the profitability of certain
    highly competitive markets, in particular Australia and the Netherlands, though
    these factors were partially offset by the profit contributed by acquisitions
    in the year and the impact of the disposal of the Group's Swedish operations,
    as well as higher depreciation and purchased licence amortisation, following
    the launch of 3G services in Australia and New Zealand, and the amortisation
    of identifiable intangible assets from the acquisitions in the current financial
    year.
Other
    Mobile subsidiaries
In Greece,
    service revenue grew by 9.4% when measured in local currency, due primarily
    to a 13.6% rise in the average customer base. ARPU decreased by 3.7% year-on-year,
    mainly due to a reduction in termination rates of 16.8% in September 2004.
    In local currency, service revenue growth was 12.0% excluding the termination
    rate cut. An increasing emphasis on retaining customers by encouraging prepaid
    to contract customer migration resulted in churn decreasing to 25.0% for the
    current financial year from 29.7% in the previous year.
Service
    revenue in Egypt, when measured in local currency, grew by 36.2%, primarily
    as a result of an increase in the average prepaid customer base of 82.0% which
    was driven by new innovative tariffs improving access and affordability in
    the market place. Revenue market share increased by 3.8 percentage points
    in the 2006 financial year to 51.8%.
Competition
    in Portugal intensified during the year with aggressively priced no-frills
    offerings by competitors which, combined with cuts in the termination rate
    which resulted in the average termination rate this year being 28.3% lower
    than last year, led to local currency service revenue growth being restricted
    to 1.6%.
In the
    Netherlands, an increase of 3.5% in service revenue and a 10.0% growth in
    the average customer base was achieved.
Vodafone
    Australia increased its customer base by 16.0%, and local currency service
    revenue by 11.8% due to the popularity of the capped plans, which have resulted
    in a significant increase in outgoing voice usage, whilst adversely impacting
    outgoing voice revenue per minute and interconnect costs. 3G services were
    launched on 31 October 2005, with strong uptake resulting in 171,000 consumer
    3G devices being registered on the network by 31 March 2006.
New Zealand
    achieved service revenue growth of 8.5%, driven by a 12.3% growth in the average
    customer base, due principally to the launch of competitive promotions during
    the year. 3G services were launched on 10 August 2005, with 103,000 3G devices
    registered by the end of the financial year.
In Ireland,
    service revenue grew by 5.9%, primarily due to an increase of 9.2% in total
    voice usage following a 5.9% increase in the average customer base. Voice
    usage per customer in Ireland remains the highest of all Vodafone's European
    subsidiaries.
On 5 January
    2006, the Group announced that it had completed the sale of its 100% interest
    in Vodafone Sweden to Telenor, the pan-Nordic telecommunications operator.
    Vodafone and Telenor have agreed the terms of a Partner Market Agreement in
    Sweden, allowing Telenor's mobile customers in Sweden and Vodafone customers
    to continue to benefit from Vodafone's global brand, products and services
    in Sweden.
Service
    revenue growth in Hungary and Albania, when measured in local currency, was
    13.9% and 16.2% respectively. Vodafone Romania increased service revenue by
    39.0% in local currency compared with the previous financial year, assuming
    the Group's increased equity interest is reflected in the whole of the
    current and prior financial year. Additionally, Vodafone's newly acquired
    subsidiaries in the Czech Republic and Romania have performed ahead of the
    Group's expectations at the time of the acquisition.
Other
    Mobile joint ventures
Average
    proportionate customers for the Group's joint ventures, excluding Italy,
    grew organically by 43.4% in the year to 31 March 2006, with strong growth
    in markets with relatively low penetration rates. The customer growth was
    the primary reason for the 19.0% increase in adjusted operating profit for
    other mobile joint ventures.
During
    the financial year, the Group completed the acquisition of a 10% economic
    interest in Bharti Tele-Ventures Limited (now renamed Bharti Airtel Limited),
    a leading national mobile operator in India.
Vodafone
      Group Plc
Annual Report 2006
35
Back to Contents
Operating
  Results
continued
The Group
    also increased its effective shareholding in its joint venture in South Africa,
    Vodacom, from 35% to approximately 50% following the acquisition of VenFin.
Other
    Mobile associated undertakings
SFR,
    the Group's associated undertaking in France, reported strong growth
    in revenue and operating profit, principally as a result of an 8.1% increase
    in average customers compared with the previous financial year. Usage of both
    voice and non-voice services increased in the year and SFR had a total of
    5,268,000 Vodafone live! customers at
31
    March 2006. SFR continues to grow its 3G base and at 31 March 2006 had registered
    1,352,000 3G devices on its network.
On 30 November
  2005, the French competition authority fined SFR
€
220 million for engaging
  in anti-competitive agreements that distorted market competition. SFR is in
  the process of appealing this decision.
On 7 April
  2006, the Swiss Competition Commission notified Swisscom Mobile, the Group's
  associated undertaking in Switzerland, of its intention to impose a fine of
  CHF489 million in relation to abusive pricing on the mobile wholesale call termination
  market between 1 April 2004 and 31 May 2005.
Other
    Mobile investments
China
    Mobile, in which the Group has a 3.27% stake, and is accounted for as an investment,
    grew its customer base by 21.9% in the year to 260.6 million at 31 March 2006.
    Dividends of £41 million were received in the year.
Common
  functions
Years
      ended 31 March
2006
2005
Change
£m
£m
%
Revenue
145
123
17.9
Adjusted
      operating profit/(loss)
211
(85
)
Common functions
  include the results of Partner Markets and unallocated central Group costs and
  charges. Adjusted operating profit increased primarily due to a revision of
  the charges made to Vodafone operating companies for the use of the Vodafone
  brand and related trademarks which took effect from 1 April 2005.
Other operations
Years
      ended 31 March
2006
2005
Change
£m
£m
%
Revenue
Germany
1,320
1,095
20.5
Other
19
–
1,339
1,095
22.3
Adjusted
      operating profit/(loss)
Germany
139
64
117.2
Other
(20
)
(45
)
(55.6
)
119
19
526.3
Other operations
  comprise interests in fixed line telecommunications businesses in Germany, France
  and India.
Germany
In
    local currency, Arcor's revenue increased by 20.7%, primarily due to
    customer and usage growth, partially offset by tariff decreases in the competitive
    market. The incumbent fixed line market leader continues to drive this intensive
    competition, although Arcor further strengthened its position as the main
    competitor. Contract ISDN voice customers increased by 103% to 1,447,000 and
    DSL (broadband internet) customers by 166% to 1,209,000 in the current financial
    year. Arcor increased its share of the DSL market to 11%. Revenue growth and
    cost efficiencies led to the substantial improvement in adjusted operating
    profit.
Other
The
    merger of Cegetel, the Group's associated undertaking, and Neuf Telecom
    closed on 22 August 2005, giving the Group a proportionate interest of 12.4%
    in the leading alternative operator for fixed line telecommunications services
    in France. The new entity, Neuf Cegetel, has the largest alternative broadband
    network in France, with 70% population coverage.
US
    GAAP Reconciliation
The
    principal differences between US GAAP and IFRS, as they relate to the Consolidated
    Financial Statements, are the accounting for goodwill and intangible assets
    before 29 September 2005, the accounting for income taxes, the capitalisation
    of interest and the timing of recognition of connection revenue and expenses.
In the year
  ended 31 March 2006, revenue from continuing operations under US GAAP was £23,756
  million compared with revenue from continuing operations under IFRS of £29,350
  million for the same period. The difference relates to the equity accounting
  of Vodafone Italy under US GAAP, the treatment of Vodafone Sweden as discontinued
  under US GAAP and the release of connection revenue deferred prior to the adoption
  of EITF 00-21 on 1 October 2003, which is required to be recognised over the
  period a customer is expected to remain connected to the network under US GAAP.
Net loss
  under US GAAP for the year ended 31 March 2006 was £13,310 million, compared
  with a loss for the financial year under IFRS of £21,821 million for the
  same period. The lower net loss under US GAAP was mainly driven by higher amortisation
  charges of other intangible assets and share of result in equity method investments,
  more than offset by income taxes and the reversal of impairment losses.
The reconciliation
  of the differences between IFRS and US GAAP is provided in note 38 to the Consolidated
  Financial Statements.
36
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Summary
  of Key Performance Indicators
for Principal Markets
2006
2005
Germany
Customers
        ('000s)
(1)
29,191
27,223
Prepaid
      (%)
53.3
52
Activity
        level (%)
(1)(2)
90.6
93.7
Churn
        (%)
(1)
20.2
18.3
Average
        monthly ARPU (€)
(1)
–
      Prepaid
8.5
9.8
–
      Contract
39.2
39.9
–
      Blended
23.3
24.9
Total
      voice minutes (millions)
26,787
23,560
Vodafone
      live! active devices ('000)
6,214
4,845
3G devices
        ('000)
(1)
2,025
358
2006
2005
Italy
Customers
        ('000s)
(1)
18,490
17,280
Prepaid
      (%)
92.2
92
Activity
        level (%)
(1)
91.2
92.3
Churn
        (%)
(1)
18.7
17.2
Average
        monthly ARPU (€)
(1)(2)
–
      Prepaid
24.3
25.4
–
      Contract
74.7
76.8
–
      Blended
28.5
29.9
Total
      voice minutes (millions)
29,604
28,170
Vodafone
      live! active devices ('000)
4,097
2,113
3G devices
        ('000)
(1)
2,250
511
2006
2005
Spain
Customers
        ('000s)
(1)
13,521
11,472
Prepaid
      (%)
50.4
53
Activity
        level (%)
(1)
94.3
94.6
Churn
        (%)
(1)
20.9
21.9
Average
        monthly ARPU (€)
(1)(2)
–
      Prepaid
15.1
15.1
–
      Contract
56.9
57.4
–
      Blended
35.6
34.5
Total
      voice minutes (millions)
23,835
17,793
Vodafone
      live! active devices ('000)
5,514
2,992
3G devices
        ('000)
(1)
902
88
2006
2005
United
        Kingdom
Customers
        ('000s)
(1)
16,304
15,324
Prepaid
        (%)
61.1
61
Activity
        level (%)
(1)
88.4
90.3
Churn
        (%)
(1)
32.1
29.7
Average
        monthly ARPU (£)
(1)(2)
–
        Prepaid
9.4
10.3
–
        Contract
45.7
47.4
–
        Blended
24.0
25.5
Total
        voice minutes (millions)
28,059
25,486
Vodafone
        live! active devices ('000)
4,181
3,443
3G
        devices ('000)
(1)
1,033
190
2006
2005
US –
      Verizon Wireless
Customers
        ('000s)
(1)
23,530
20,173
Churn
        (%)
(1)
14.7
17.2
Average
        monthly ARPU ($)
(1)(2)
–
      Blended
51.4
52.4
Acquistion
        and retention costs as a percentage of service revenue (%)
12.4
12.9
Notes:
(1)
See
      page 49 for definitions.
(2)
During
      the year ended 31 March 2006, the definition of an active customer was revised
      to one who either pays a monthly fee or has made or received a chargeable
      event in the last three months. The information for the year ended 31 March
      2005 has been restated using this revised definition.
Vodafone
      Group Plc
Annual Report 2006
37
Back to Contents
Financial
  Position and Resources
Balance
        Sheet
Years
        ended 31 March
2006
2005
Change
£m
£m
%
Non-current
        assets
Intangible
        assets
69,118
97,148
(28.9
)
Property,
        plant and equipment
13,660
17,442
(21.7
)
Investments
        in associated undertakings
23,197
20,234
14.6
Other
        non-current assets
2,639
2,962
(10.9
)
108,614
137,786
(21.2
)
Current
        assets
7,532
9,411
(20.0
)
Assets
        included in disposal group
held
        for sale
10,592
–
–
Total
        assets
126,738
147,197
(13.9
)
Total
        equity
85,312
113,648
(24.9
)
Non-current
        liabilities
Long-term
        borrowings
16,750
13,190
27.0
Deferred
        tax liabilities
5,670
4,849
16.9
Other
        non-current liabilities
951
893
6.5
23,371
18,932
23.4
Current
        liabilities
Short-term
        borrowings
3,448
2,003
72.1
Current
        taxation liabilities
4,448
4,353
2.2
Other
        current liabilities
7,616
8,261
(7.8
)
15,512
14,617
6.1
Liabilities
        included in disposal
group
        held for sale
2,543
–
–
Total
        equity and liabilities
126,738
147,197
(13.9)
Non-current
  assets
Intangible
  assets
At 31 March
  2006, the Group's intangible assets were £69.1 billion, with goodwill
  comprising the largest element at £52.6 billion (2005: £81.0 billion).
  The balance has decreased from £97.1 billion (£88.1 billion excluding
  discontinued operations) at
31
  March 2005 mainly as a result of a £23.5 billion impairment charge in
  the 2006 financial year in respect of the carrying value of goodwill of Germany,
  Italy and Sweden. Refer to note 10 to the Consolidated Financial Statements
  for further information on the impairment losses. Other movements resulted from
  £4.7 billion of intangible assets arising on acquisitions in the 2006
  financial year, £0.6 billion of additions, primarily in relation to computer
  software, £1.0 billion of exchange movements, partially offset by £1.6
  billion of amortisation charges and £0.2 billion of disposals, mainly
  in relation to the goodwill related to Vodafone Sweden.
Property,
  plant and equipment
The most significant
  component of property, plant and equipment is network infrastructure, which
  is fundamental to the Group being able to provide its services. Property, plant
  and equipment decreased from £17.4 billion (£12.9 billion excluding
  Japan) at 31 March 2005 to £13.7 billion at 31 March 2006 as a result
  of £3.4 billion of additions during the year and £0.9 billion of
  additions arising on acquisition as well as £0.3 billion of foreign exchange
  movements, partially offset by £3.1 billion of depreciation charges and
  £0.7 billion of disposals including £0.6 billion in relation to
  the sale of the Group's operations in Sweden. At 31 March 2006, network
  infrastructure assets of £10.1 billion (2005: £14.1 billion) represented
  73.6% (2005: 80.8%) of total property, plant and equipment.
Investments
  in associated undertakings
The Group's
  investments in associated undertakings increased from £20.2 billion at
31 March 2005
  to £23.2 billion at 31 March 2006, mainly as a result of £2.4 billion
  from the Group's share of the results of its associates after the deductions
  of interest, tax and minority interest, and favourable exchange rate movements
  of £1.4 billion, offset by £0.8 billion of dividends received.
Other
  non-current assets
Other non-current
    assets mainly relates to other investments held by the Group, which totalled
    £2.1 billion at 31 March 2006 compared to £1.2 billion at 31 March
    2005, with the movement representing an increase in the listed share price
    of China Mobile in which the Group has an equity investment and foreign exchange
    movements, offset by a
£0.5
  billion decrease in deferred tax assets, excluding discontinued operations –
  see non-current liabilities below.
Current assets
Current assets
  decreased to £7.5 billion at 31 March 2006 from £9.4 billion at
  31 March 2005, mainly as a result of a £1.0 billion reduction in cash
  and liquid investments and the reclassification of Vodafone Japan as discontinued
  operations.
Equity
  shareholders' funds
Total equity
  shareholders' funds decreased from £113.8 billion at 31 March 2005
  to £85.4 billion at 31 March 2006. The decrease comprises of the loss
  for the year of £21.9 billion, equity dividends of £2.8 billion,
  purchases of the Company's own shares of £6.5 billion, a loss on
  the re-issue of treasury shares of £0.1 billion and £0.1 billion
  of other movements, partially offset by £0.4 billion of own shares released
  on vesting of share awards, issue of new share capital of £0.2 billion,
  a £0.1 billion share-based payments charge and £2.3 billion of other
  accumulated other recognised income and expense.
Non-current liabilities
Non-current
  liabilities increased to £23.4 billion at 31 March 2006 from £18.9
  billion at 31 March 2005, mainly due to the increase in borrowings, which is
  discussed further in "Liquidity and Capital Resources". The deferred
  tax liability increased from £4.8 billion at 31 March 2005 to £5.7
  billion at 31 March 2006, which together with the £0.5 billion decrease
  in deferred tax assets, arose primarily from a net £0.4 billion in relation
  to acquisitions and disposals in the year, £0.6 billion additional tax
  charges to the income statement and £0.2 billion of foreign exchange movements
  – refer to note 6 to the Consolidated Financial Statements. Non-current
  liabilities also includes £0.1 billion (2005: £0.1 billion) in relation
  to the deficit on defined benefit pension schemes – refer to note 25 to
  the Consolidated Financial Statements.
Current liabilities
Current liabilities
  increased to £15.5 billion from £14.6 billion.
Equity
  Dividends
The table
  below sets out the amounts of interim, final and total cash dividends paid or,
  in the case of the final dividend for the 2006 financial year, proposed in respect
  of each financial year indicated both in pence per ordinary share and translated,
  solely for convenience, into cents per ordinary share at the Noon Buying Rate
  on each of the respective payment dates for such interim and final dividends.
Pence
        per ordinary share
Cents
        per ordinary share
Year
        ended
31
        March
Interim
Final
Total
Interim
Final
Total
2002
0.7224
0.7497
1.4721
1.0241
1.1422
2.1663
2003
0.7946
0.8983
1.6929
1.2939
1.4445
2.7384
2004
0.9535
1.0780
2.0315
1.7601
1.9899
3.7500
2005
1.91
2.16
4.07
3.60
4.08
7.68
2006
2.20
3.87
(1)
6.07
3.83
6.73
(1)
10.56
Note:
(1)
The final dividend for the year was proposed on 30 May 2006 and is payable on 4 August 2006 to holders of record as of 7 June 2006. This dividend has been
translated into US dollars at the Noon Buying Rate at 31 March 2006 for ADS holders, but will be payable in US dollars under the terms of the deposit agreement.
The Company has historically paid dividends semi-annually, with a regular interim dividend in respect of the first six months of the financial year payable in February and a final
dividend payable in August. The Board expects that the Company will continue to pay dividends semi-annually. In November 2005, the Board declared an interim dividend of 2.20 pence per share, representing a 15.2% increase over last year's
interim dividend.
In considering the level of dividends, the Board takes account of the outlook for earnings growth, operating cash flow generation, capital expenditure requirements, acquisitions and
divestments, together with the amount of debt and share purchases.
Consistent with this, and developments to the Group's strategy, the Board has decided to target a 60% dividend pay out ratio taking effect for the 2006 financial year. The Board
is therefore recommending a final dividend of 3.87 pence, representing a 79.2% increase over last year's final dividend and bringing the total dividend for the year to 6.07 pence, an increase of 49.1% on last year's total dividend. The
dividend pay out ratio, being the declared interim and proposed final dividends per share as a percentage of adjusted earnings per share from continuing operations, in respect of the 2006 financial year of 60%, compared favourably with a pay-out
ratio for the 2005 financial year of 45%. It is the intention to grow future dividends on an annual basis in line with underlying earnings growth, maintaining dividends per share at approximately 60% of adjusted earnings per share.
Cash dividends,
    if any, will be paid by the Company in respect of ordinary shares in
38
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
pounds sterling
  or, to holders of ordinary shares with a registered address in a country which
  has adopted the euro as its national currency, in euro, unless shareholders
  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.
The Company
  will pay the ADS Depositary, The Bank of New York, its dividend in US dollars.
  The sterling: US dollar exchange rate for this purpose will be determined by
  the Company shortly before the payment date. Cash dividends to ADS holders will
  be paid by the ADS Depositary in US dollars.
Contractual
  Obligations
A summary
  of the Group's principal contractual financial obligations is shown below.
  Further details on the items included can be found in the notes to the Consolidated
  Financial Statements.
Payments
        due by period
£m
Contractual
        obligations
(1)
Total
<1
        year
1-3
        years
3-5
        years
>5
        years
Borrowings
(2)
28,101
4,308
6,175
7,373
10,245
Operating
        lease commitments
(3)
3,644
654
956
742
1,292
Capital
        commitments
(4)
813
813
–
–
–
Purchase
        commitments
(5)
1,159
855
187
89
28
Telsim
        asset acquisition agreements
2,600
2,600
–
–
–
Total
        contractual cash obligations
(1)
36,317
9,230
7,318
8,204
11,565
Notes:
(1)
The
        above table of contractual obligations excludes commitments in respect
        of options over interests in Group businesses held by minority shareholders
        (see "Option agreements and similar arrangements") and obligations
        to pay dividends to minority shareholders (see "Dividends from associated
        undertakings and dividends to minority interests"). Disclosures required
        by Financial Accounting Standards Board ("FASB") Interpretation
        No. 45, "Guarantor's Accounting and Disclosure Requirements
        for Guarantees, Including Indirect Guarantees of Indebtedness of Others",
        are provided in note 31 to the Consolidated Financial Statements. The
        table also excludes obligations under post employment benefit schemes,
        details of which are provided in note 25 to the Consolidated Financial
        Statements. The table also excludes contractual obligations relating to
        the Group's discontinued operations in Japan, which were disposed
        of on 27 April 2006.
(2)
See
        note 24 to the Consolidated Financial Statements.
(3)
See
        note 30 to the Consolidated Financial Statements.
(4)
Primarily
        related to network infrastructure.
(5)
Predominantly
        commitments for handsets.
Contingencies
Details of
  the Group's contingent liabilities are included in note 31 to the Consolidated
  Financial Statements.
A number
  of Vodafone subsidiaries acquired 3G licences through auctions in 2000 and 2001.
  An appeal was filed by Vodafone Group Services Limited on behalf of Vodafone
  Limited, along with appeals filed by other UK mobile network operators which
  were granted a 3G licence, with the VAT and Duties Tribunal on 18 October 2003
  for recovery of VAT on the basis that the amount of the licence fee was inclusive
  of VAT. The amount claimed by Vodafone Limited is approximately £888 million.
  In August 2004, these claims were referred, jointly, to the ECJ and a hearing
  took place on 7 February 2006. A decision by the ECJ is expected within the
  next 12 to 15 months. The Group has not recognised any amounts in respect of
  this matter to date. In addition, the Group has made a claim for recovery of
  VAT in relation to 3G licence fees in Portugal, the Netherlands, Germany and
  Ireland. The Group may also pursue similar claims in certain other European
  jurisdictions.
Liquidity
    and Capital Resources
Cash
    flows
The major
    sources of Group liquidity for the 2006 financial year have been cash generated
    from operations, dividends from associated undertakings, borrowings through
    short term and long term issuances in the capital markets and asset disposals.
    For the year ended 31 March 2005, sources of Group liquidity were from cash
    generated from operations and dividends from associates. The Group does not
    use off-balance sheet special purpose entities as a source of liquidity or
    for other financing purposes.
The Group's
  key sources of liquidity for the foreseeable future are likely to be cash generated
  from operations and borrowings through long term and short term issuances in
  the capital markets, as well as committed bank facilities. Additionally, the
  Group has a put option in relation to its interest in Verizon Wireless which,
  if exercised, could provide a material cash inflow. Please see "Option
  agreements and similar arrangements" at the end of this section.
The Group's
  liquidity and working capital may be affected by a material decrease in cash
  flow due to factors such as reduced operating cash flow resulting from further
  possible business disposals, increased competition, litigation, timing of tax
  payments and the resolution of outstanding tax issues, regulatory rulings, delays
  in development of new services and networks, inability to receive expected revenue
  from the introduction of
new services,
  reduced dividends from associates and investments or dividend payments to minority
  shareholders. Please see the section titled "Risk Factors, Trends and Outlook",
  on pages 43 to 45. The Group anticipates a significant increase in cash tax
  payments and associated interest payments over the next three years due to the
  resolution of long standing tax issues. The Group is also party to a number
  of agreements that may result in a cash outflow in future periods. These agreements
  are discussed further in "Option agreements and similar arrangements"
  at the end of this section.
Wherever
  possible, surplus funds in the Group (except in Albania, Romania and Egypt)
  are transferred to the centralised treasury department through repayment of
  borrowings, deposits and dividends. These are then on-lent or contributed as
  equity to fund Group operations, used to retire external debt or invested externally.
Decrease
  in cash in the year
During
  the 2006 financial year, the Group increased its net cash inflow from operating
  activities by 7.9% to £11,841 million, including a 10.3% increase to £10,190
  million from continuing operations. The Group generated £6,418 million
  of free cash flow from continuing operations, a reduction of 2.6% on the previous
  financial year, and an additional £701 million from discontinued operations.
  Free cash flow from continuing operations decreased from the prior financial
  year due to a reduction in the dividends received from associated undertakings,
  principally Verizon Wireless, and an increase in capital expenditure which more
  than offset the increase in the net cash inflow from operating activities.
The Group
  holds its cash and liquid investments in accordance with the counterparty and
  settlement risk limits of the Board approved treasury policy. The main forms
  of liquid investments at 31 March 2006 were money market funds and bank deposits.
2006
2005
£m
£m
Net
      cash flows from operating activities
11,841
10,979
–
      Continuing operations
10,190
9,240
–
      Discontinued operations
1,651
1,739
Taxation
1,682
1,578
Purchase
      of intangible fixed assets
(690
)
(699
)
Purchase
      of property, plant and equipment
(4,481
)
(4,279
)
Disposal
      of property, plant and equipment
26
68
Operating
      free cash flow
8,378
7,647
Taxation
(1,682
)
(1,578
)
Dividends
      from associated undertakings
835
1,896
Dividends
      paid to minority shareholders in
subsidiary
      undertakings
(51
)
(32
)
Dividends
      from investments
41
19
Interest
      received
319
339
Interest
      paid
(721
)
(744
)
Free
      cash flow
7,119
7,547
–
      Continuing operations
6,418
6,592
–
      Discontinued operations
701
955
Net
      cash outflow from acquisitions and disposals
(3,587
)
(2,017
)
Other
      cash flows from investing activities
(56
)
113
Equity
      dividends paid
(2,749
)
(1,991
)
Other
      cash flows from financing activities
(1,555
)
(5,764
)
Decrease
      in cash in the year
(828
)
(2,112
)
Capital
  expenditure
During the
  2006 financial year, £4,481 million was spent on property, plant and equipment,
  an increase of 4.7% from the previous financial year. From continuing operations,
  the amount spent increased to £3,634 million.
The cash
  outflow in intangible assets reduced from £699 million in the previous
  financial year to £690 million in the current financial year, with the
  largest element being expenditure on computer software.
Dividends
  from associated undertakings and investments and dividends to minority shareholders
Dividends
  from the Group's associated undertakings and investments are generally
  paid at the discretion of the board of directors or shareholders of the individual
  operating
Vodafone
      Group Plc
Annual Report 2006
39
Back to Contents
Financial
  Position and Resources
continued
companies
  and Vodafone has no rights to receive dividends, except where specified within
  certain of the companies' shareholders' agreements, such as with SFR,
  the Group's associated undertaking in France. Similarly, the Group does
  not have existing obligations under shareholders' agreements to pay dividends
  to minority interest partners of Group subsidiaries, except as specified below.
Included
  in the dividends received from associated undertakings and investments was an
  amount of £195 million received from Verizon Wireless. Until April 2005,
  Verizon Wireless' distributions were determined by the terms of the partnership
  agreement distribution policy and comprised income distributions and tax distributions.
  Since April 2005, tax distributions have continued and a new distribution policy
  is expected to be set in the future by the Board of Representatives of Verizon
  Wireless. Current projections forecast that tax distributions will not be sufficient
  to cover the US tax liabilities arising from the Group's partnership interest
  in Verizon Wireless until 2015 and, in the absence of additional distributions
  above the level of tax distributions during this period, will result in a net
  cash outflow for the Group. Under the terms of the partnership agreement, the
  board of directors has no obligation to provide for additional distributions
  above the level of the tax distributions. It is the expectation that Verizon
  Wireless will re-invest free cash flow in the business and reduce indebtedness
  for the foreseeable future.
During the
  year ended 31 March 2006, cash dividends totalling £511 million were received
  from SFR in accordance with the shareholders' agreement.
Verizon
    Communications Inc. ("Verizon Communications") has an indirect 23.1%
    shareholding in Vodafone Italy and, under the shareholders' agreement,
    can request dividends to be paid, provided that such dividends would not impair
    the financial condition or prospects of Vodafone Italy including, without
    limitation, its credit rating. No dividends were proposed or paid by Vodafone
    Italy during or since the year ended
31
    March 2006 but a share purchase programme occurred during the financial year,
    further details of which are provided on page 41.
Acquisitions
  and disposals
The Group
  invested a net £3,643 million in acquisition and disposal activities,
  including a net cash outflow of £56 million from the purchase and disposal
  of investments, in the year to 31 March 2006. The acquisitions are described
  in more detail under "Business Overview – History and Development
  of the Company".
An analysis of the main transactions in the 2006 financial year, including the changes in the Group's effective shareholding, is shown below:
£m
Acquisitions:
Czech
        Republic (nil to 100%) and Romania (20.1% to 100%)
(1)
1,840
South
        Africa (35.0% to 49.9%)
(1)
1,444
India
        (nil to 10.0%)
(1)
849
Disposals:
Sweden
        (100% to nil)
(658
)
Other
        net acquisitions and disposals, including investments
168
3,643
Note:
(1)
Amounts
        are shown net of cash and cash equivalents acquired.
On 17 March
  2006, the Group announced an agreement to sell its 97.7% holding in Vodafone
  Japan to SoftBank. The transaction completed on 27 April 2006 with the Group
  receiving cash of approximately ¥1.42 trillion (£6.9 billion), including
  the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion).
  In addition, the Group received non-cash consideration with a fair value of
  approximately ¥0.23 trillion (£1.1 billion), comprised of preferred
  equity and a subordinated loan. SoftBank also assumed external debt of approximately
  ¥0.13 trillion (£0.6 billion).
Special
  distribution of £9 billion
On 17 March
  2006, the Group stated that it will make a special distribution of approximately
  £6 billion in the 2007 financial year of the £6.9 billion cash received
  following the completion of the sale of the Group's interest in Vodafone
  Japan. Through targeting a lower credit rating, the Group now plans to return
  a further £3 billion, resulting in a total distribution of approximately
  £9 billion.
This equates
  to 15p per ordinary share. Subject to shareholder approval, the method of distribution
  will be in the form of a B share arrangement with a share consolidation, which
  will reduce the Company's shares in issue. The B share arrangement provides
  for shareholder flexibility as to when and how cash is received, thereby allowing
  income tax and capital gains management for some shareholders. The Company will
  post a circular to shareholders, with full details of the B share arrangement
  and the consolidation, on or around 13 June 2006.
The consolidation,
  which will replace existing ordinary shares with fewer new ordinary shares,
  is intended to maintain the share price, subject to normal market movements,
  and, consequently, historic comparability. For non-US shareholders, the B shares
  will be redeemed by default, with shareholders receiving a capital distribution.
  They may, however, elect for certain alternatives. Non-US shareholders can elect
  to receive the 15 pence as a one off dividend or elect to receive the capital
  distribution over time at pre-determined dates. Payment in respect of the initial
  redemption is intended to be made on 11 August 2006 and for any shareholders
  electing to receive the one off 15 pence per B share dividend payment is also
  intended to be made on 11 August 2006. It is expected that US shareholders and
  American Depositary Receipt ("ADR") holders will only be entitled
  to receive the return as a one off dividend.
Share purchase
  programme
When considering
  how increased returns to shareholders can be provided in the form of share purchases,
  the Board reviews the free cash flow, anticipated cash requirements, dividends,
  credit profile and gearing of the Group.
On 24 May
  2005, the Board allocated £4.5 billion to the share purchase programme
  for the year to 31 March 2006, which was subsequently increased to £6.5
  billion. For the period from 1 April 2005 to 31 March 2006, the Company purchased
  4,848 million shares at a cost of £6.5 billion. The average share price
  paid, excluding transaction costs, was 133.37 pence, compared with the average
  volume weighted price over the same period but excluding the period when shares
  could not be purchased, due to the announcement of the discussions which led
  to the disposal of Vodafone Japan, of 133.87 pence. No shares have been purchased
  since 31 March 2006. In addition to ordinary market purchases, the Company placed
  irrevocable purchase instructions prior to the start of some of the close periods
  and in advance of quarterly KPI announcements.
At its AGM
  on 26 July 2005, the Company received shareholder approval to purchase up to
  6.4 billion shares of the Company. This approval will expire at the conclusion
  of the Company's AGM on 25 July 2006. Shares can be purchased on market
  on the London Stock Exchange at a price not exceeding 105% of the average middle
  market quotation for such shares on the five business days prior to the date
  of purchase and otherwise in accordance with the rules of the Financial Services
  Authority. Purchases are only made if accretive to adjusted earnings per share.
As a result
  of targeting a lower credit rating and the £9 billion special distribution,
  the Group has no current plans for further share purchases or other one off
  shareholder returns.
Details
  of shares purchased under the programme are shown below:
Total
number
        of
shares
Average
purchased
price
under
Maximum
paid
        per
publicly
value
        of
Total
share,
announced
shares
number
        of
inclusive
        of
share
purchased
shares
transaction
purchase
under
        the
purchased
costs
programme
(1)
programme
(2)
Date
        of share purchase
'000
Pence
'000
£m
1
        – 30 April 2005
321,000
139.33
321,000
4,053
1
        – 23 May 2005
84,500
139.00
405,500
3,935
24
        – 31 May 2005
110,000
139.49
515,500
3,782
1
        – 30 June 2005
508,500
136.80
1,024,000
3,086
1
        – 10 July 2005
145,500
137.23
1,169,500
2,887
11
        – 27 July 2005
225,700
144.32
1,395,200
2,561
28
        – 31 July 2005
–
–
1,395,200
2,561
1
        – 31 August 2005
297,900
150.57
1,693,100
2,112
1
        – 30 September 2005
273,900
151.21
1,967,000
1,698
1
        – 31 October 2005
368,000
146.76
2,335,000
1,158
1
        – 14 November 2005
71,500
150.83
2,406,500
3,050
15
        – 30 November 2005
564,000
128.23
2,970,500
2,327
1
        – 31 December 2005
362,500
126.49
3,333,000
1,868
1
        – 9 January 2006
165,500
129.63
3,498,500
1,654
10
        – 24 January 2006
504,000
124.99
4,002,500
1,024
25
        – 31 January 2006
76,500
121.17
4,079,000
931
1
        – 28 February 2006
411,000
119.84
4,490,000
439
1
        – 31 March 2006
358,000
122.42
4,848,000
–
Total
4,848,000
134.07
4,848,000
–
Notes:
(1)
No shares were purchased outside the publicly announced share purchase programmes.
(2)
On 24 May 2005, the Company announced it was allocating £4.5 billion to the share purchase programme to cover the year to 31 March 2006, including those
shares purchased between 1 April 2005 and 23 May 2005 under irrevocable purchase instructions. This superseded the £4 billion programme announced in November 2004. On 15 November 2005, the Company announced that it was increasing the
allocation to £6.5 billion completing by March 2006.
40
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Treasury
  shares
The Companies
  Act 1985 permits companies to purchase their own shares out of distributable
  reserves and to hold shares with a nominal value not to exceed 10% of the nominal
  value of their issued share capital in treasury. If shares in excess of this
  limit are purchased they must be cancelled. Whilst held in treasury, no voting
  rights or preemption rights accrue and no dividends are paid in respect of treasury
  shares. Treasury shares may be sold for cash, transferred (in certain circumstances)
  for the purposes of an employee share scheme, or cancelled. If treasury shares
  are sold, such sales are deemed to be a new issue of shares and will accordingly
  count towards the 5% of share capital which the Company is permitted to issue
  on a non pre-emptive basis in any one year as approved by its shareholders at
  the AGM. The proceeds of any sale of treasury shares up to the amount of the
  original purchase price, calculated on a weighted average price method, is attributed
  to distributable profits which would not occur in the case of the sale of non-treasury
  shares. Any excess above the original purchase price must be transferred to
  the share premium account.
Shares purchased are held in treasury in accordance with section 162 of the Companies Act 1985. The movement in treasury shares during the financial year is shown below:
Number
million
£m
1
        April 2005
3,814
5,121
Repurchase
        of shares
4,848
6,500
Cancellation
        of shares
(2,250
)
(3,053
)
Re-issue
        of shares
(279
)
(370
)
31
        March 2006
6,133
8,198
Vodafone
  Italy share purchase
On 19 April
  2005, the board of directors of Vodafone Italy approved a proposal to buy back
  issued and outstanding shares for approximately
€
7.9
  billion (£5.4 billion), which was subsequently approved by the shareholders
  of Vodafone Italy. The buy back took place in two tranches, the first on 24
  June 2005 and the second on 7 November 2005. As a result, Vodafone received
€
6.1 billion (£4.2 billion)
  and Verizon Communications received
€
1.8 billion (£1.2 billion).
  After the transaction, Vodafone and Verizon Communications shareholdings in
  Vodafone Italy remained at approximately 77% and 23%, respectively. At 31 March
  2006, Vodafone Italy had net cash on deposit with Group companies of
€
2.3
  billion (£1.6 billion).
Funding
The Group's
  consolidated net debt position for continuing operations is as follows:
2006
2005
£m
£m
Cash
        and cash equivalents (as presented in the
consolidated
        cash flow statement)
2,932
3,726
Bank
        overdrafts
18
43
Cash
        and cash equivalents for discontinued operations
(161
)
–
Cash
        and cash equivalents (as presented in
the
        consolidated balance sheet)
2,789
3,769
Trade
        and other receivables
(1)
310
408
Trade
        and other payables
(1)
(219
)
(79
)
Short-term
        borrowings
(3,448
)
(2,003
)
Long-term
        borrowings
(16,750
)
(13,190
)
(20,107
)
(14,864
)
Net
        debt as extracted from the consolidated balance sheet
(17,318
)
(11,095
)
Net
        debt related to discontinued operations
–
920
Net
        debt related to continuing operations
(17,318
)
(10,175
)
Note:
(1)
Trade
      and other receivables and payables include certain derivative financial
      instruments (see notes 17 and 27).
Net debt
  increased to £17,318 million, from £10,175 million at 31 March 2005,
  principally as a result of the cash flow items noted above, share purchases,
  equity dividend payments and £34 million of foreign exchange movements.
  This represented approximately 24% of the Group's market capitalisation
  at 31 March 2006 compared with 11% at 31 March 2005. Average net debt at month
  end accounting dates over the 12 month period ended 31 March 2006 was £13,391
  million, and ranged between £9,551 million and £17,318 million during
  the year.
Consistent
  with development of its strategy, the Group is now targeting low single A long
  term credit ratings from Moody's, Fitch Ratings and Standard & Poor's
  having previously managed the capital structure at single A credit ratings.
  Credit ratings are not a recommendation to purchase, hold or sell securities,
  in as much as ratings do not comment on market price or suitability for a particular
  investor, and are subject to revision or withdrawal at any time by the assigning
  rating organisation. Each rating should be evaluated independently.
The Group's
  credit ratings enable it to have access to a wide range of debt finance, including
  commercial paper, bonds and committed bank facilities.
Commercial
  paper programmes
The Group
  currently has US and euro commercial paper programmes of $15 billion and £5
  billion, respectively, which are available to be used to meet short term liquidity
  requirements and which were undrawn at 31 March 2005. At 31 March 2006, $696
  million (£400 million) was drawn under the US commercial paper programme
  and $80 million (£46 million) and £285 million were drawn under
  the euro commercial paper programme. The commercial paper facilities are supported
  by $10.9 billion (£6.3 billion) of committed bank facilities, comprised
  of a $5.9 billion Revolving Credit Facility that matures on 24 June 2009 and
  a $5.0 billion Revolving Credit Facility that matures on 22 June
  2012. At 31 March 2006 and 31 March 2005, no amounts had been drawn under either
  bank facility.
Bonds
The Group
  has a
€
15
  billion Euro Medium Term Note programme, a $12 billion US shelf programme and
  a ¥600 billion Japanese shelf programme, which are used to meet medium to
  long term funding requirements. At 31 March 2006, the total amounts in issue
  under these programmes split by currency were $13.4 billion, £1.5 billion, €
8.7
  billion and ¥3 billion. In addition, the Group's discontinued operation
  in Japan had bonds in issue of ¥125 billion, which were transferred to SoftBank
  following completion of the sale of Vodafone Japan.
In the year
  to 31 March 2006, bonds with a nominal value £5.2 billion were issued
  under the US Shelf and the Euro Medium Term Note programme. The bonds issued
  during the year were:
US
        Shelf / Euro
Medium
        Term
Note
        ("EMTN")
Date
        of bond issue
Maturity
        of bond
Currency
Amount
        Million
programme
8
        August 2005
15
        September 2015
USD
750
US
        Shelf
8
        September 2005
8
        September 2014
GBP
350
EMTN
29
        November 2005
29
        November 2012
EUR
750
EMTN
29
        December 2005
29
        June 2007
USD
1,850
US
        Shelf
29
        December 2005
28
        December 2007
USD
750
US
        Shelf
8
        February 2006
17
        July 2008
EUR
1,250
EMTN
16
        March 2006
28
        December 2007
USD
750
US
        Shelf
16
        March 2006
15
        June 2011
USD
350
US
        Shelf
16
        March 2006
15
        June 2011
USD
750
US
        Shelf
16
        March 2006
15
        March 2016
USD
750
US
        Shelf
At 31 March
  2006, the Group had bonds in issue with a nominal value of £15,389 million,
  including $207 million of bonds that were assumed as part of the acquisition
  of MobiFon S.A. and Oscar Mobil a.s. on 31 May 2005, plus a further ¥125
  billion bonds in the Group's discontinued operations in Japan.
On
        7 June 2006, the Company agreed to issue €1 billion of bonds due
        on 13 January 2012 and €300 million of bonds due on 14 June 2016
        under the Euro Medium Term Note programme. The bonds were  issued
        on 14 June 2006.
Vodafone
      Group Plc
Annual Report 2006
41
Back to Contents
Financial
  Position and Resources
continued
Committed
  facilities
The following table
  summarises the committed bank facilities available to the Group at 31 March
  2006:
Committed
        Bank Facilities
Amounts
        drawn
24
        June 2004
$5.9
        billion Revolving Credit Facility,
maturing
        24 June 2009.
No
        drawings have been made against
this
        facility. The facility supports the
Group's
        commercial paper
programmes
        and may be used for
general
        corporate purposes including
acquisitions.
24
        June 2005
$5.0
        billion Revolving Credit Facility,
maturing
        22 June 2012.
No
        drawings have been made against
this
        facility. The facility supports the
Group's
        commercial paper
programmes
        and may be used for
general
        corporate purposes including
acquisitions.
21
        December 2005
¥259
        billion Term Credit Facility,
maturing
        16 March 2011, entered into by
Vodafone
        Finance K.K. and guaranteed
by
        the Company.
The
        facility was drawn down in full on
21
        December 2005. The facility is
available
        for general corporate
purposes,
        although amounts drawn
must
        be on-lent to the Company.
Under the
  terms and conditions of the $10.9 billion committed bank facilities, lenders
  have the right, but not the obligation, to cancel their commitments and have
  outstanding advances repaid no sooner than 30 days after notification of a change
  of control of the Company. The facility agreements provide for certain structural
  changes that do not affect the obligations of the Company to be specifically
  excluded from the definition of a change of control. This is in addition to
  the rights of lenders to cancel their commitment if the Company has committed
  an event of default.
Substantially
  the same terms and conditions apply in the case of Vodafone Finance K.K.'s
  ¥259 billion term credit facility, although the change of control provision
  is applicable to any guarantor of borrowings under the term credit facility.
  As of 31 March 2006, the Company was the sole guarantor.
In addition,
  Vodafone Japan has a fully drawn bilateral facility totalling ¥8 billion
  (£39 million) which expires in January 2007 and which was included in
  the sale of Vodafone Japan.
Furthermore,
  three of the Group's subsidiary undertakings are funded by external facilities
  which are non-recourse to any member of the Group other than the borrower, due
  to the level of country risk involved. These facilities may only be used to
  fund their operations. Vodafone Egypt has a partly drawn (EGP250 million (£25
  million)) syndicated bank facility of EGP900 million (£90 million) that
  fully expires in September 2007. On 1 April 2006 the undrawn EGP 650 million
  (£65 million) element of the facility lapsed. Vodafone Albania has a fully
  drawn (
€
60 million (£42 million))
  syndicated bank facility that expires at various dates up to and including October
  2012. Vodafone Romania has a fully drawn €
200
  million syndicated bank facility that expires at various dates up to October
  2010.
In aggregate,
  the Group has committed facilities of approximately £7,833 million, of
  which £6,362 million was undrawn and £1,471 million was drawn at
  31 March 2006.
The Group
  believes that it has sufficient funding for its expected working capital requirements.
  Further details regarding the maturity, currency and interest rates of the Group's
  gross borrowings at 31 March 2006 are included in note 24 to the Consolidated
  Financial Statements.
Financial
  assets and liabilities
Analyses of
  financial assets and liabilities, including the maturity profile of debt, currency
  and interest rate structure, are included in notes 18 and 24 to the Consolidated
  Financial Statements. Details of the Group's treasury management and policies
  are included within note 24 to the Consolidated Financial Statements.
Option
  agreements and similar arrangements
Potential
  cash inflows
As part of
  the agreements entered into upon the formation of Verizon Wireless, the Company
  entered into an Investment Agreement with Verizon Communications, formerly Bell
  Atlantic Corporation, and Verizon Wireless. Under this agreement, dated 3 April 2000, the Company has the right to require Verizon Communications or Verizon Wireless to acquire interests in the Verizon Wireless partnership from the Company with an
aggregate market value of up to $20 billion during certain periods up to August 2007, dependent on the value of the Company's 45% stake in Verizon Wireless. This represents a potential source of liquidity to the Group.
Exercise of the option could have occurred in either one or both of two phases. The Phase I option expired in August 2004 without being exercised. The Phase II option may be exercised
during the periods commencing 30 days before and ending 30 days after any one or more of 10 July 2006 and 10 July 2007. The Phase II option also limits the aggregate amount paid to $20 billion and caps the payments under single exercises to $10
billion. Determination of the market value of the Company's interests will be by mutual agreement of the parties to the transaction or, if no such agreement is reached within 30 days of the valuation date, by appraisal. If an initial public
offering takes place and the common stock trades in a regular and active market, the market value of the Company's interest will be determined by reference to the trading price of common stock.
Potential
  cash outflows
In respect
  of the Group's interest in the Verizon Wireless partnership, an option
  granted to Price Communications, Inc. by Verizon Communications is exercisable
  at any time up to and including 15 August 2006. The option gives Price Communications,
  Inc. the right to exchange its preferred limited partnership interest in Verizon
  Wireless of the East LP for either equity of Verizon Wireless (if an initial
  public offering of such equity occurs), or common stock of Verizon Communications.
  If the exercise occurs, Verizon Communications has the right, but not the obligation,
  to contribute the preferred interest to the Verizon Wireless partnership, diluting
  the Group's interest. However, the Group also has the right to contribute
  further capital to the Verizon Wireless partnership in order to maintain its
  percentage partnership interest at the level just prior to the exercise of the
  option. Such amount is expected to be $1.0 billion.
During the 2005 financial year, the Group sold 16.9% of Vodafone Egypt to Telecom Egypt, reducing the Group's effective interest to 50.1%. Both parties also signed a shareholder
agreement setting out the basis under which the Group and Telecom Egypt would each contribute a 25.5% interest in Vodafone Egypt to a newly formed company to be 50% owned by each party. Within this shareholder agreement, Telecom Egypt was granted a
put option over its entire interest in Vodafone Egypt giving Telecom Egypt the right to put its shares back to the Group at fair market value. On 31 October 2005, the shareholder agreement between Telecom Egypt and Vodafone expired and the
associated rights and obligations contained in the shareholder agreement terminated, including the aforementioned put option. However, the original shareholders agreement contained an obligation on both parties to use reasonable efforts to
renegotiate a revised shareholder agreement for their direct shareholding in Vodafone Egypt on substantially the same terms as the original agreement, which may or may not lead to a new agreement containing a put option under the terms described
above. As of 31 March 2006, the parties have not agreed to abandon such efforts and as such, the financial liability relating to the initial shareholder agreement has been retained in the Group's balance sheet at 31 March 2006.
In respect of Arcor, the Group's non-mobile operation in Germany, the capital structure provides all partners, including the Group, the right to withdraw capital from 31 December 2026 onwards and this right in relation to the minority partners has been recognised as a financial liability.
Off-balance
  sheet arrangements
The Group
  does not have any material off-balance sheet arrangements, as defined by the
  SEC. Please refer to notes 30 and 31 to the Consolidated Financial Statements
  for a discussion of the Group's commitments and contingent liabilities.
Quantitative
  and qualitative disclosures about market risk
A discussion
  of the Group's financial risk management objectives and policies and the
  exposure of the Group to liquidity, market and credit risk is included within
  note 24 to the Consolidated Financial Statements.
42
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Risk Factors, Trends and Outlook
Risk
  Factors
Regulatory
  decisions and changes in the regulatory environment could adversely affect the
  Group's business.
Because the
  Group has ventures in a large number of geographic areas, it must comply with
  an extensive range of requirements that regulate and supervise the licensing,
  construction and operation of its telecommunications networks and services.
  In particular, there are agencies which regulate and supervise the allocation
  of frequency spectrum and which monitor and enforce regulation and competition
  laws which apply to the mobile telecommunications industry. Decisions by regulators
  regarding the granting, amendment or renewal of licences, to the Group or to
  third parties, could adversely affect the Group's future operations in
  these geographic areas. The Group cannot provide any assurances that governments
  in the countries in which it operates will not issue telecommunications licences
  to new operators whose services will compete with it. In addition, other changes
  in the regulatory environment concerning the use of mobile phones may lead to
  a reduction in the usage of mobile phones or otherwise adversely affect the
  Group. Additionally, decisions by regulators and new legislation could affect
  the pricing for, or adversely affect the revenue from, the services the Group
  offers. Further details on the regulatory framework in certain countries and
  regions in which the Group operates, and on regulatory proceedings can be found
  in "Regulation" on pages 21 to 24.
Increased
  competition may reduce market share or revenue.
The Group
  faces intensifying competition. Competition could lead to a reduction in the
  rate at which the Group adds new customers and to a decrease in the size of
  the Group's market share as customers choose to receive telecommunications
  services, or other competing services, from other providers. Examples include,
  but are not limited to, competition from internet-based services and MVNOs.
The focus of competition in many of the Group's markets continues to shift from customer acquisition to customer retention as the market for mobile telecommunications has become
increasingly penetrated. Customer deactivations are measured by the Group's churn rate. There can be no assurance that the Group will not experience increases in churn rates, particularly as competition intensifies. An increase in churn rates
could adversely affect profitability because the Group would experience lower revenue and additional selling costs to replace customers, although such costs would have a future revenue stream to mitigate the impact.
Increased competition has also led to declines in the prices the Group charges for its mobile services and is expected to lead to further price declines in the future. Competition
could also lead to an increase in the level at which the Group must provide subsidies for handsets. Additionally, the Group could face increased competition should there be an award of additional licences in jurisdictions in which a member of the
Group already has a licence.
Delays
  in the development of handsets and network compatibility and components may
  hinder the deployment of new technologies.
The Group's
  operations depend in part upon the successful deployment of continuously evolving
  mobile telecommunications technologies. The Group uses technologies from a number
  of vendors and makes significant capital expenditures in connection with the
  deployment of such technologies. There can be no assurance that common standards
  and specifications will be achieved, that there will be inter-operability across
  Group and other networks, that technologies will be developed according to anticipated
  schedules, that they will perform according to expectations or that they will
  achieve commercial acceptance. The introduction of software and other network
  components may also be delayed. The failure of vendor performance or technology
  performance to meet the Group's expectations or the failure of a technology
  to achieve commercial acceptance could result in additional capital expenditures
  by the Group or a reduction in profitability.
Expected
  benefits from integration may not be realised.
The One Vodafone
  programme represents the Group's principal plan to achieve integration
  across the Group's operating companies, particularly in Europe, and is
  designed to maximise the benefits of Vodafone's scale and scope. The programme
  is premised on six core initiatives, further details of which can be found on
  pages 18 to 19. The Group has previously stated publicly that it expects to
  realise operational revenue benefits by the year ending 31 March 2008. These
  expected benefits have been formulated by management on the assumption that
  all of the core initiatives which comprise the One Vodafone programme generate
  the results anticipated and that the Group is able to take advantage of its
  size and exploit the associated economies of scale to their fullest extent.
  Management considers these targeted revenue enhancements set out on pages 18
  to 19 to be achievable, although no assurance can be given that the full extent
  of the anticipated benefits of the One Vodafone programme will be realised.
  In addition, the ability to deliver tangible business benefits from the convergence
  of the Group's IT systems could be compromised by the technical complexity
  of such a process or other difficulties associated with converging multiple
  systems architectures.
Changes
  in assumptions underlying the carrying value of certain Group assets could result
  in impairment.
Vodafone completes
  a review of the carrying value of its assets annually, or more frequently where
  the circumstances require, to assess whether those carrying values can be supported
  by the future cash flows derived from such assets. This review examines the
  continued appropriateness of the assumptions in respect of highly uncertain
  matters upon which the carrying values of certain of the Group's assets
  are based. This includes an assessment of discount rates and long term growth
  rates, future technological developments and timing and quantum of future capital
  expenditure, as well as several factors which may affect revenues and profitability
  identified within other Risk Factors in this section such as intensifying competition,
  pricing pressures, regulatory changes and the timing for introducing new products
  or services. Due to the Group's substantial carrying value of goodwill
  under IFRS and licences under US GAAP, the revision of any of these assumptions
  to reflect current or anticipated changes in operations or the financial condition
  of the Group could lead to an impairment in the carrying value of certain assets
  in the Group. Whilst impairment does not impact reported cash flows, it does
  result in a non-cash charge on the income statement, and thus no assurance can
  be given that any future impairments would not affect the Company's reported
  distributable reserves and therefore its ability to make distributions to its
  shareholders or repurchase its shares. See "Critical Accounting Estimates
  –Impairment Reviews" on page 26.
The Group's
  business would be adversely affected by the non-supply of equipment and support
  services by a major supplier.
Companies
  within the Group source their mobile network infrastructure and related support
  services from third party suppliers. The removal from the market of one or more
  of these third party suppliers would adversely affect the Group's operations
  and could result in additional capital expenditures by the Group.
The Company's
  strategic objectives may be impeded by the fact that it does not have a controlling
  interest in some of its ventures.
Some of the
  Group's interests in mobile licences are held through entities in which
  it is a significant but not controlling owner. Under the governing documents
  for some of these partnerships and corporations, certain key matters such as
  the approval of business plans and decisions as to the timing and amount of
  cash distributions require the consent of the partners. In others, these matters
  may be approved without the Company's consent. The Company may enter into
  similar arrangements as it participates in ventures formed to pursue additional
  opportunities. Although the Group has not been materially constrained by the
  nature of its mobile ownership interests, no assurance can be given that its
  partners will not exercise their power of veto or their controlling influence
  in any of the Group's ventures in a way that will hinder the Group's
  corporate objectives and reduce any anticipated cost savings or revenue enhancement
  resulting from these ventures.
Expected
  benefits from investment in networks, licences and new technology may not be
  realised.
The Group
  has made substantial investments in the acquisition of licences and in its mobile
  networks, including the roll out of 3G networks. The Group expects to continue
  to make significant investments in its mobile networks due to increased usage
  and the need to offer new services and greater functionality afforded by new
  or evolving telecommunications technologies. Accordingly, the rate of the Group's
  capital expenditures in future years could remain high or exceed that which
  it has experienced to date.
Please see "Business Overview – Licences and network infrastructure" on pages 14 to 15 for more information on expected expenditure in connection with the roll out of
3G services. There can be no assurance that the introduction of new services will proceed according to anticipated schedules or that the level of demand for new services will justify the cost of setting up and providing new services. Failure or a
delay in the completion of networks and the launch of new services, or increases in the associated costs, could have a material adverse effect on the Group's operations.
The Group
  may experience a decline in revenue or profitability notwithstanding its efforts
  to increase revenue from the introduction of new services.
As part of
  its strategy to increase usage of its networks, the Group will continue to offer
  new services to its existing customers and seek to increase non-voice service
  revenue as a percentage of total service revenue. However, the Group may not
  be able to introduce commercially these new services, or may experience significant
  delays due to problems such as the availability of new mobile handsets or higher
  than anticipated prices of new handsets. In addition, even if these services
  are introduced in accordance with expected time schedules, there is no assurance
  that revenue from such services will increase ARPU or maintain profit margins.
Vodafone
      Group Plc
Annual Report 2006
43
Back to Contents
Risk
Factors, Trends and Outlook
continued
The Group's business and its ability to retain customers and attract new customers may be impaired by actual or perceived health risks associated with the transmission of radiowaves
from mobile telephones, transmitters and associated equipment.
Concerns
have been expressed in some countries where the Group operates that the electromagnetic
signals emitted by mobile telephone handsets and base stations may pose health
risks at exposure levels below existing guideline levels and may interfere with
the operation of electronic equipment. In addition, as described under the heading "Legal Proceedings" in note 31 to the Consolidated Financial Statements, several
mobile industry participants, including the Company and Verizon Wireless, have had lawsuits filed against them alleging various health consequences as a result of mobile phone usage, including brain cancer. While the Company is not aware that such
health risks have been substantiated, there can be no assurance that the actual, or perceived, risks associated with radiowave transmission will not impair its ability to retain customers and attract new customers, reduce mobile telecommunications
usage or result in further litigation. In such event, because of the Group's
strategic focus on mobile telecommunications, its business and results of operations
may be more adversely affected than those of other companies in the telecommunications
sector.
Trend Information
The growth in the mobile telecommunications industry in terms of customers, revenue and cash flows has been substantial over the past decade. Vodafone believes that the mobile
industry will continue to experience growth, although as the markets in which the Group operates mature, the rate of growth will depend on the demand for enhanced voice and data products and services and the amount of voice and data traffic moving
from fixed networks to mobile networks. The most significant current trends which are expected to impact the Group are:
Increasing penetration rates and competition between network operators for customers
For
the Group's operations which operate in less penetrated markets, the Group expects customer growth to be the principal source of revenue growth. Gaining new customers depends
on many factors, including network coverage and quality, customer satisfaction, product offerings and handset range but a key factor is often the pricing of handsets and tariffs. In general, as penetration rates rise in a market, competition
intensifies as operators invest more in retaining their existing customers whilst offering incentives to potential new customers. These competitive pressures, along with new mobile users who generally spend less than existing users, exert a downward
pressure on ARPU and result in increased acquisition and retention costs. The Group anticipates that this trend will continue, though it will endeavour to offset the impact by usage stimulation campaigns, new product offerings and leveraging the
Group's scale and scope.
In markets with high penetration rates, the Group expects usage stimulation and new products and services to be the main drivers of revenue growth. Building on the success of recent
campaigns in many of the Group's markets, bundled offerings are expected to expand to provide better value to customers and encourage increased use of the Group's services. Such stimulation initiatives are expected to increase ARPU in the
medium and longer term as higher usage more than offsets the reduced average revenue per minute or per message. The Group also expects that technology innovation will lead to the improved integration of PC's and laptops with mobile services and
provide opportunities for the Group to expand its product offering, resulting in a larger market for its services.
A number of national regulators are considering allocating additional spectrum or offering new licences for the provision of mobile telecommunications services. If the additional
spectrum or new licences are acquired by new or existing competitors, the competitive pressures in the local market may increase.
Impact of new competitors
New service providers, or MVNOs, in a number of markets in which the Group operates are increasing the competitive pressures in certain market segments with low cost offerings.
Certain national regulators require, or have stated their intention to require, network operators to provide network access to such service providers. The Group expects that in markets in which new service providers have a significant competitive
impact, ARPU is likely to reduce and this competition may result in the need for the Group to invest further amounts in customer retention.
Downward pressure on termination rates from regulatory action
In
recent years, action by NRA's has led to reductions in the income the Group
receives for terminating calls from fixed or other mobile networks and, similarly,
reductions in the cost charged by other operators for connecting a call on their
fixed or mobile network. Vodafone expects such regulatory pressure to persist
for the foreseeable future.
Development of and demand for data services
Since
the Group's introduction of data service offerings, revenue from these services
has increased each year, although there can be no assurance that this will continue
to be the case. With continued growth in the use of data services as more customers
utilise 3G services, including video calling and full track music downloads,
the Vodafone Mobile Connect data card, new business focused offerings and the
recent launch of
3G broadband, the Group expects continued growth in non-messaging data service
revenue and for this revenue to increase as a percentage of total service revenue
over time.
Benefits of regional scale and scope
As
the world's leading international mobile telecommunications company, the
Group is able to benefit from its regional scale and scope. The One Vodafone
initiatives (see pages 18 to 19) are targeted at maximising the future value
of these benefits.
Impact of convergence and disruptive technologies
The
emergence of new technologies, which enable core and radio access networks to
be increasingly based on internet protocols, is likely to provide the Group with
opportunities to
reduce costs and target the replacement of customers' fixed line phone services.
However, they will also provide opportunities for new competitors to enter the
telecommunications services market. Vodafone believes it is well placed to take
advantage of these opportunities, as demonstrated by the launch of Vodafone Zuhause
in Germany.
Depreciation expense
Depreciation
expense is driven largely by capital expenditure on building and upgrading the
Group's networks. Capital expenditure on network equipment has increased
in recent years with the construction of 3G networks. As network equipment generally
has an expected useful life of between three and ten years, the resulting depreciation
expense in the medium term is likely to be higher than in the current financial
year.
The One Vodafone initiatives are expected to reduce capital expenditure, and
hence depreciation, relative to revenue in the longer term.
Seasonality
The
Group's
  financial results and cash flows have not, historically, been subject to significant
  seasonal trends between the first and second half of the financial year, although
  there are a number of offsetting trends.
Traditionally, the Christmas period sees a higher volume of customer connections, contributing to higher equipment and connection revenue in the second half of the financial year.
Ongoing airtime revenue also demonstrates signs of seasonality, with revenue generally lower during February, which is a shorter than average month, and revenue from roaming charges higher during the summer months as a result of increased travel by
customers.
There is no assurance
that these trends will continue in the future. For additional considerations
related to these trends, please see "Risk Factors" in this section.
44
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Outlook
2007 financial year
While we
      are delivering on cost reduction, revenue stimulation and emerging market growth
      in the shorter term, the potential benefits from serving our customers
    total telecommunications needs will materialise over a longer timeframe.
For the
  year ahead, we expect operating conditions to remain challenging, with a continued
  intense competitive environment and further regulatory pressure,
  but nevertheless see continued growth in Group revenue.
We are
    anticipating higher customer investment, pricing pressures and further termination
    rate
      reductions to impact growth in adjusted operating profit;
    however, initiatives to deliver further cost efficiencies are expected to
    mitigate this
    effect.
Group
    capitalised fixed asset additions are expected to be in the range of £4.2
      billion to £4.6 billion, which is higher than the 2006 financial
      year due to the effect of recently completed acquisitions and disposals
      and the
      Group's
      rollout of HSDPA.
Free cash
    flow is expected to be in the range of £4.0
        billion to £4.5
        billion after an estimated
£1.2
      billion of tax payments, including associated interest, in respect of the
      potential unfavourable
      resolution of a number of long standing tax issues. The Group currently
      forecasts a further significant increase in cash tax and associated interest
      payments
      in the 2008 financial year, including a potentially material amount related
      to the CFC litigation which could be paid should the litigation be resolved
      unfavourably in that year. Further information on the CFC litigation is
      provided in note 31 in the Consolidated
  Financial Statements.
The Group
    has previously indicated that in the three year period ending 31 March 2009,
    it expects a number of long standing tax issues
      to be resolved. The Group
  estimates that tax payments of approximately £5 billion could be made
  over that period, together with associated interest costs, including a potentially
  material amount relating to CFC litigation.
The section
    entitled "Business
    Overview – Global Services – One
    Vodafone" on pages 18 to 19 provides additional outlook statements in
    relation to the expected future benefits of One Vodafone initiatives on cash
    flow, capital
    expenditure and operating expenditure.
Vodafone
            Group Plc
Annual Report 2006
45
Back to Contents
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; intentions regarding the development of products and services introduced by Vodafone or by Vodafone in conjunction with initiatives with third parties; the ability to integrate all operations
  throughout the Group in the same format and on the same technical platform and the ability to be operationally efficient; the development and impact of new mobile technology; anticipated benefits to the Group of the One Vodafone programme; the
  results of Vodafone's brand awareness and brand preference campaigns; growth in customers and usage, including improvements in customer mix; future performance, including turnover, average revenue per user ("ARPU"), cash flows, costs,
  capital expenditures and margins, non-voice services and their revenue contribution; share purchases; the rate of dividend growth by the Group or its existing investments; expectations regarding the Group's access to adequate funding for its
  working capital requirements; expected effective tax rates and expected tax payments; the ability to realise synergies through cost savings, revenue generating services, benchmarking and operational experience; future acquisitions, including
  increases in ownership in existing investments and pending offers for investments; future disposals; contractual obligations; mobile penetration and coverage rates; the impact of regulatory and legal proceedings involving Vodafone; expectations with
  respect to long-term shareholder value growth; Vodafone's ability to be
  the mobile market leader, 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 MVNOs, 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 spending patterns of existing customers;
•
the possibility that new products and services, including mobile internet platforms, 3G, Vodafone live!, Vodafone Radio DJ and other 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;
•
a lower than expected impact of GPRS, 3G, Vodafone live!, Vodafone Radio DJ and other 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 3G technology, Vodafone
live!, Vodafone Radio DJ 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 GPRS and 3G 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 One Vodafone initiative;
•
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 takes into account in determining the level
of dividends;
•
any unfavourable conditions, regulatory or otherwise, imposed in connection with pending or future acquisitions or disposals and the integration of acquired
companies in the Group's existing obligations;
•
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 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 telecommunications 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 "Risk Factors, Trends and Outlook – Risk Factors" on pages 43 to 44. 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.
46
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Non-GAAP Information
Presentation of Adjusted Operating Profit
The Group presents
  operating profit excluding impairment losses and non-recurring amounts related
  to business acquisitions and disposals for the Group and the Group's reported
  business segments, being mobile telecommunications and other operations. The
  Group believes that it is both useful and necessary to report these measures
  for the following reasons:
•
these measures are used by the Group for internal performance analysis;
•
the
       presentation by the Group's reported business segments of these measures facilitates comparability with other companies, although the Group's
       measures may not be comparable with similarly titled profit measurements
    reported by other companies; and
•
it is useful in connection with discussion with the investment analyst community and debt rating agencies.
Reconciliation of these measures to the closest equivalent GAAP measure, operating
(loss)/profit, is provided in note 3 to the Consolidated Financial Statements.
Organic Growth
The
Group believes
that "organic growth", which is not intended to be a substitute, or
superior to, reported growth, provides useful and necessary information to investors
and other interested parties for the following reasons:
•
it provides additional information on underlying growth of the business without the effect of factors unrelated to the operating performance of the
business;
•
it is used by the Group for internal performance analysis; and
•
it
       facilitates comparability of underlying growth with other companies, although
       the term "organic" is not a defined term under IFRS, or US GAAP,
       and may not, therefore, be comparable with similarly titled measures reported
    by other companies.
Reconciliation
of organic growth to reported growth is shown below:
Impact
    of
Organic
Impact
    of foreign
acquisitions
Reported
growth
exchange
and
    disposals
growth
%
%
%
%
Mobile telecommunications
Voice revenue
5.3
0.6
2.2
8.1
Non-voice
    revenue
– Messaging
10.6
0.4
2.1
13.1
– Data
60.4
(0.4
)
1.2
61.2
Total service revenue
7.2
0.5
2.2
9.9
Acquisition and retention revenue
2.3
0.8
(0.2
)
2.9
Total revenue
6.7
0.5
2.1
9.3
Interconnect costs
7.2
0.7
2.5
10.4
Group revenue
7.5
0.5
2.0
10.0
Reported
Impact
          of impairment
Impact
          of
Impact
          of
growth
          in
losses
          and non-recurring
Reported
          growth
Organic
foreign
acqusitions
in
          non-GAAP
amounts
          related to business
in
          equivalent
growth
exchange
and
          disposals
measure
acquisition
          and disposals
GAAP
        measure
(2)
%
%
%
%
%
%
Adjusted
          operating profit
Mobile
        telecommunications profit
(1)
10.3
1.1
–
11.4
(290.2
)
(278.8
)
Total
        operating profit
(1)
11.4
1.0
0.1
12.5
(291.3
)
(278.8
)
Notes:
(1)
Before impairment losses and non-recurring amounts related to business acquisitions and disposals.
(2)
Closest equivalent GAAP measure is operating (loss)/profit.
Cash Flow Measures
In
presenting and
discussing the Group's reported results, free cash flow and operating free
cash flow are calculated and presented on the basis of methodologies other than
in accordance with IFRS. The Group believes that it is both useful and necessary
to communicate free cash flow to investors and other interested parties, for
the following reasons:
•
free
       cash flow allows the Company and external parties to evaluate the Group's liquidity and the cash generated by the Group's
       operations. Free cash flow does not include items determined independently
       of the ongoing business, such as the level of dividends, and items which
       are deemed discretionary, such as cash flows relating to acquisitions
       and disposals or financing activities. In addition, it
does not necessarily reflect the amounts which the Group has an obligation to
       incur. However, it does reflect the cash available for such discretionary
       activities, to strengthen the balance sheet or to provide returns to shareholders
       in the form of
dividends or share purchases;
•
free
       cash flow facilitates comparability of results with other companies, although
       the Group's measure of free cash flow may not be directly comparable
       to
similarly titled measures used by other companies;
•
it is used by management for planning, reporting and incentive purposes; and
•
it is useful in connection with discussion with the investment analyst community and debt rating agencies.
The Group believes that the presentation of operating free cash flow is useful
and necessary for investors and other interested parties as it provides the quantitative
basis for the cash flow targets of the One Vodafone initiatives outlined on pages
18 to 19. This measure may not be directly comparable to similarly titled measures
used by other companies.
A reconciliation of net cash inflow from operating activities, the closest equivalent
GAAP measure,
to operating free cash flow and free cash flow, is provided in "Performance – Financial
Position and Resources – Liquidity and Capital Resources – Cash Flows" on
page 39.
Vodafone
            Group Plc
Annual Report 2006
47
Back to Contents
Non-GAAP Information
continued
Net Debt
In
presenting and
discussing the Group's indebtedness and liquidity position, net debt is
calculated. There is no definition of net debt within IFRS. The Group believes
that it is both useful and necessary to communicate net debt to investors and
other interested parties, for the following reasons:
•
net
       debt allows the Company and external parties to evaluate the Group's
    overall indebtedness and liquidity position;
•
net
       debt facilitates comparability of indebtedness and liquidity with other
       companies, although the Group's measure of net debt may not be directly
       comparable
to similarly titled measures used by other companies;
•
it is used by management for planning and reporting purposes; and
•
it is used in discussions with the investment analyst community and the debt rating agencies.
A reconciliation of short-term and long-term borrowings, the closest equivalent
GAAP measures, to net debt is shown on page 41.
Presentation of Other Revenue in Discussion of Trading Results
The
discussion of the trading results of the Group and principal markets on pages
30 to 37 presents the cost of sales related to acquisition and retention costs,
net of revenue attributable to these activities. The Group believes that this
basis of presentation provides useful information for investors for the following
reasons:
•
it provides trends in net subsidies with respect to the acquisition and retention of customers; and
•
it
       facilitates comparability of results with other companies operating in
       the mobile telecommunications business. This performance indicator is
       commonly used in the mobile telecommunications industry and by Vodafone
       management to compare net subsidies provided to acquire and retain customers
       to prior periods and internal forecasts. "Net acquisition costs" and "Net retention costs" as
    used in the trading results are defined on page 49.
Reconciliation of "Net other revenue" to the closest equivalent GAAP
measure, revenue, and "Net acquisition costs" and "Net retention
costs" to their closest equivalent GAAP measure, gross acquisition and retention
costs,
are shown below:
Mobile
Other
    Mobile
telecommunications
Germany
Italy
Spain
UK
Operations
£m
£m
£m
£m
£m
£m
Year
    ended 31 March 2006:
Net other revenue
532
114
15
6
135
137
Acquisition and retention revenue
1,724
246
178
374
345
583
Other revenue
2,256
360
193
380
480
720
Total service revenue
25,881
5,394
4,170
3,615
4,568
8,530
Revenue
28,137
5,754
4,363
3,995
5,048
9,250
Year ended 31 March 2005:
Net other revenue
546
122
14
2
177
110
Acquisition and retention revenue
1,647
242
168
296
390
554
Other revenue
2,193
364
182
298
567
664
Total service revenue
23,547
5,320
4,091
2,963
4,498
6,973
Revenue
25,740
5,684
4,273
3,261
5,065
7,637
Year
    ended 31 March 2006:
Net acquisition costs
1,541
366
78
274
380
443
Net retention costs
1,444
349
93
249
395
358
Acquisition and retention revenue
1,724
246
178
374
345
583
Gross acquisition and retention costs
4,709
961
349
897
1,120
1,384
Year ended 31 March 2005:
Net acquisition costs
1,446
348
71
246
388
393
Net retention costs
1,234
330
74
172
391
267
Acquisition and retention revenue
1,647
242
168
296
390
554
Gross acquisition and retention costs
4,327
920
313
714
1,169
1,214
Other
Certain
of the statements
within the section titled "Chief Executive's Review" on pages
8 to 11 and the section titled "One Vodafone", on pages 18 to 19 contain
forward-looking non-GAAP financial information for which at this time there is
no comparable GAAP measure and which at this time cannot be quantitatively reconciled
to comparable GAAP financial information.
Certain of the statements
within the section titled "Risk Factors, Trends and Outlook" on pages
43 to 45, contain forward-looking non-GAAP financial information which at this
time cannot be quantitatively reconciled to comparable GAAP financial information.
48
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Performance
Definition of Terms
The
  definition of terms used throughout the performance section is detailed below.
  These terms are not uniformly defined by all companies in the Group's
  industry. Accordingly, such measures may not be comparable with similarly titled
  measures and disclosures by other companies.
3G
    broadband
A
        technology which enables data transmission at speeds of up to two megabits
        per
second.
3G
    device
A
    handset or device capable of accessing 3G data services.
Acquired
            intangibles
amortisation
Amortisation
          relating to intangible assets identified and recognised separately
          in
respect of a business combination in excess of the intangible
assets
recognised by the
acquiree prior to acquisition.
Active
    customer
A
        customer who either pays a monthly fee or has made or received a chargeable
        event in the last three months. The active customers are expressed as
        a percentage of the closing customer base. Contract and prepaid activity
    is reported separately.
ARPU
Total
        revenue excluding handset revenue and connection fees divided by the
        weighted average number of
customers during the period.
Capitalised
    fixed asset
additions
This
          measure includes the aggregate of capitalised property, plant and equipment
    additions and capitalised software costs.
Churn
Total
        gross customer disconnections in the period divided by the average total
        customers in the
period.
Controlled
    and jointly
controlled
    networks
The
          networks include the Group's mobile operating subsidiaries and
          joint
ventures. Measures for controlled and jointly controlled networks
include
100%
for subsidiaries and the Group's proportionate share for joint ventures.
Customer
A
        customer is defined as a Subscriber Identity Module ("SIM"),
        or in territories where SIMs do not exist, a unique mobile telephone
        number, which has access to the network for any purpose (including data
        only usage) except telemetric applications. Telemetric applications include,
        but are not limited to, asset and equipment tracking, mobile payment
        and billing functionality (for example, vending machines and meter readings)
        and include voice enabled customers whose usage is limited to a central
        service operation (for example, emergency response applications in vehicles).
    SIM information is derived from local operating company billing systems.
Data
    revenue
Data
    revenue includes all non-voice service revenue excluding messaging.
Depreciation
    and other
amortisation
This
        measure includes the profit or loss on disposal of property, plant and
    equipment.
EBITDA
Adjusted
    operating profit before depreciation and amortisation.
Interconnect
    costs
A
        charge paid by Vodafone to other fixed line or mobile operators when
        a Vodafone
customer calls a customer connected to a different network.
Messaging
    revenue
Messaging
        revenue comprises revenue from providing SMS and MMS services including
        wholesale messaging revenue, revenue from the use of messaging services
        by Vodafone customers roaming away from their home network and customers
    visiting the local network.
Net
    acquisition costs
The
        total of connection fees, trade commissions and equipment costs, net
        of related revenue, relating to new customer connections. This performance
        indicator is commonly used in the mobile telecommunications industry
        and by Vodafone management to compare net subsidies provided to acquire
        customers to prior periods and internal forecasts. Management believes
        that this measure provides useful information for investors regarding
        trends in net subsidies to acquire customers for mobile telecommunications
    services from period to period.
Net
    retention costs
The
        total of trade commissions, loyalty scheme and equipment costs, net of
        related revenue, relating to customer retention and upgrade. This performance
        indicator is commonly used in the mobile telecommunications industry
        and by Vodafone management to compare net subsidies provided to retain
        customers to prior periods and internal forecasts. Management believes
        that this measure provides useful information for investors regarding
        trends in net subsidies to retain customers for mobile telecommunications
    services from period to period.
Organic
    growth
The
          percentage movements in organic growth are presented to reflect operating
          performance on a comparable basis. Where an entity, being a subsidiary,
          joint venture or associated undertaking, was newly acquired or disposed
          of in the current or prior period, the Group adjusts, under organic
          growth calculations, the results for the current and prior period to
          remove the amount the Group earned in both periods as a result of the
          acquisition or disposal of subsidiary or associated undertakings. Where
          the Group increases, or decreases, its ownership interest in a joint
          venture or associated undertaking in the current or prior period, the
          Group's results for the prior period are restated at the current
          period's
ownership level.
Further
adjustments in organic calculations exclude the effect of exchange rate movements
by restating
the prior period's results as if they had been generated at the current
period's exchange rates and excludes the amortisation of acquired intangible
assets.
Proportionate
    customers
The
        proportionate customer number represents the number of mobile customers
        in ventures which the Group either controls or invests, based on the
        Group's ownership
in such ventures.
Purchased
    licence
amortisation
Amortisation
          relating to capitalised licence and spectrum fees purchased directly
          by the
Group, and such fees recognised by an acquiree prior to
acquisition.
Service
    revenue
Service
        revenue comprises all revenue related to the provision of ongoing services
        including, but not limited to, monthly access charges, airtime usage,
        roaming, incoming and outgoing network usage by non-Vodafone customers
    and interconnect charges for incoming calls.
Termination
    rate
A
        per minute charge paid by a telecommunications network operator when
        a customer makes a
call to another mobile or fixed line network operator.
Vodafone
    live! active device
A
        handset or device equipped with the Vodafone live! portal which has made
        or
received a chargeable event in the last month.
VOIP
Voice
        over internal protocol is the routing of voice calls over the internet
        or through another IP
based network.
WiFi
WiFi
        refers to underlying technology of wireless local area networks which
        enable a user, with WiFi devices, to connect to the internet in range
    of a WiFi access point.
Vodafone
            Group Plc
Annual Report 2006
49
Back to Contents
Board
  of Directors and Group Management
Directors and Senior Management
The business
  of the Company is managed by its board of directors ("the Board").
  Biographical details of the directors and senior management at the date of this
  report are as
  follows:
Directors
Chairman
1. Lord MacLaurin of Knebworth,
DL,
aged
69, joined the Board in January 1997 and became Chairman in July 1998. He is
Chairman of the Nominations and Governance Committee. Lord MacLaurin was Chairman
of Tesco Plc from 1985 to 1997 and has been a director of Enterprise Oil Plc,
Guinness Plc, National Westminster Bank Plc and Whitbread Plc. He is also a non-executive
director of the investment bank
The Evolution Group Plc and a member of the Supervisory Board of Heineken NV.
Lord MacLaurin will retire from the Board at the conclusion of the Company's
AGM on 25 July 2006. Upon his retirement Lord MacLaurin will become an advisor
to the
Company and Chairman of The Vodafone Group Foundation.
Deputy Chairman and senior independent director
2. Paul Hazen,
aged
64, has been a member of the Board since June 1999 and became Deputy Chairman
and senior independent director in May 2000. He is a member of the Nominations
and Governance Committee. Paul Hazen became a director of AirTouch Communications
Inc. in April 1993. In 2001, he retired as Chairman and Chief Executive Officer
of Wells
Fargo & Company and its principal subsidiary, Wells Fargo Bank, NA. He is Chairman of KKR Financial Corp and Accel-KKR and is also a director of Safeway, Inc., Willis Group Holdings Limited and Xstrata AG. Paul Hazen will retire from the Board
after the Company's AGM on 25 July 2006.
Executive Directors
3. Arun Sarin,
Chief Executive, aged 51, became a member of the Board in June 1999. He was appointed Chief
Executive in July 2003 and is a member of the Nominations and Governance Committee. Arun Sarin joined Pacific Telesis Group in San Francisco in 1984 and has served in many executive positions in his 20 year career in telecommunications. He was a
director of AirTouch Communications Inc. from July 1995 and was President and Chief Operating Officer from February 1997 to June 1999. He was Chief Executive Officer for the Vodafone United States and Asia Pacific region until 15 April 2000, when he
became a non-executive director. He has served as a director of The Gap, Inc., The Charles Schwab Corporation and Cisco Systems, Inc., and is a non-executive director of the Court of the Bank of England.
4. Sir Julian Horn-Smith,
Deputy
Chief Executive, aged 57, has been a member of the Board since June 1996. Previously
the Group Chief Operating Officer, Sir Julian was appointed Deputy Chief Executive
in January 2005. Since then, he has been responsible for Business Development,
which includes delivering Vodafone's product and services portfolio to
Vodafone's affiliates and Partner Networks and expanding and consolidating Vodafone's footprint. He is a director of China Mobile (Hong Kong) Limited and several of the Group's
overseas operating companies, including Chairman of the Supervisory Boards of
Vodafone Deutschland GmbH and Vodafone D2 GmbH. Sir Julian is also a non-executive
director of Lloyds TSB Group plc, Smiths Group plc and Sage Group PLC. Sir Julian
will retire from the Board at the conclusion of the AGM on 25
July 2006 and he will become Chairman of Sage Group PLC on 1 August 2006.
5. Thomas Geitner,
Chief Executive Officer, New Businesses, aged 51, was appointed to this role on 1 May
    2006. New Businesses will focus on the delivery of new revenue streams beyond pure mobile. He was appointed to the Board in May 2000 during which time he established and managed Global Products and Services. He was responsible for the single
    Vodafone brand, Vodafone live! and Vodafone Wireless Office and the partner networks franchise. In July 2003, he was appointed Chief Technology Officer responsible for the rollout of 3G, the consolidation of data centres and service platform
    operations and the establishment of the Global Supply Chain organisation. Prior to joining the Group, he was a member of the Management Board of RWE AG.
6. Andy Halford,
Chief
Financial Officer, aged 47, joined the Board in July 2005. Andy joined Vodafone
in 1999 as Financial Director for Vodafone Limited, the UK operating company,
and in 2001 he became Financial Director for Vodafone's Northern Europe,
Middle East and Africa Region. In 2002, he was appointed Chief Financial Officer
of Verizon Wireless in the US and is currently a member of the Board of Representatives
of The Verizon Wireless partnership. Prior to joining Vodafone, he was Group
Finance Director at East Midlands Electricity Plc. Andy holds a bachelors degree
in Industrial
Economics from Nottingham University and is a Fellow of the Institute of Chartered
Accountants in England and Wales.
Non-executive directors
7. Sir John Bond,
aged 64, was appointed to the Board in January 2005 and is a member of the Nominations
and Governance and Remuneration Committees. Sir John Bond is a non-executive director of Ford Motor Company. He retired from the position of Group Chairman of HSBC Holdings plc on 26 May 2006, after 45 years of service. Other previous roles include
Chairman of HSBC Bank plc and director of The Hong Kong and Shanghai Banking Corporation and HSBC North America Holdings Inc. Previous non-executive directorships include the London Stock Exchange, Orange plc, British Steel plc and the Court of the
Bank of England. Sir John will succeed Lord MacLaurin as Chairman of the Company on conclusion of the AGM on 25 July 2006.
8. Dr Michael Boskin,
aged
60, became a member of the Board in June 1999 on completion of the merger with
AirTouch Communications Inc. and is Chairman of the Audit Committee and a member
of the Remuneration Committee. Dr Boskin was a director of AirTouch Communications
Inc. from August 1996 to June 1999. He has been a Professor of Economics at Stanford
University since 1971 and was Chairman of the President's Council of Economic Advisers from February 1989 until January 1993. Dr Boskin is President and CEO of Boskin & Co.,
an economic consulting company, and is also a director of Exxon Mobil Corporation,
Shinsei Bank Limited and Oracle Corporation.
50
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
9. Lord Broers,
aged 67, joined the Board in January 1998 and is a member of the Audit Committee and the
    Nominations and Governance Committee. He is President of the Royal Academy of Engineering and a former Vice-Chancellor of Cambridge University. He spent many years with IBM, in senior roles within the research and development function, and is a
    Fellow of the Royal Society, the Institute of Electrical Engineers and the Institute of Physics. Lord Broers is also a Foreign Associate of the US National Academy of Engineering, a trustee of the British Museum and Chairman of the House of Lords
    Science and Technology Select Committee. He chairs The Vodafone Group Foundation and the Company's UK pension trustee company.
10. John Buchanan,
aged 62, has been a member of the Board since April 2003. He is a member of the Audit
Committee and, solely for the purposes of relevant legislation, is the Board's appointed financial expert on that Committee. He retired from the board of directors of BP Plc in 2002 after six years as Group Chief Financial Officer and executive
director following a wide-ranging career with the company. He was a member of the United Kingdom Accounting Standards Board from 1997 to 2001. He is Chairman of Smith & Nephew plc and a non-executive director of AstraZeneca PLC and BHP Billiton.
John Buchanan will succeed Paul Hazen as the Deputy Chairman and senior independent director after the Company's AGM on 25 July 2006.
11.
    Penny Hughes,
aged
    46, has been a member of the Board since September 1998 and is a member of
    the Audit Committee. She has particular expertise in marketing and has developed
    experience in many human resource areas, including leadership development,
    motivation and retention. She is President of the Advertising Association,
    a member of the advisory committee of Bridgepoint Capital Limited and a non-executive
    director of Reuters Group PLC, Scandinaviska Enskilda Banken AB and The Gap,
    Inc.
Penny
    Hughes was President of Coca-Cola Great Britain and Ireland, and has been
    a non-executive director of Next Plc, Trinity Mirror Plc and The Body Shop
    Plc. She will retire from the Board after the Company's AGM on 25 July
    2006.
12. Anne Lauvergeon,
aged 46, joined the Board in November 2005 and is a member of the Audit Committee.
She is Chairman of the Executive Board of AREVA, the leading French energy company, having been appointed to that role in July 2001. She started her professional career in 1983 in the iron and steel industry and in 1990 she was named Adviser for
Economic International Affairs at the French Presidency and Deputy Chief of its Staff in 1991. In 1995, she became a Partner of Lazard Frères & Cie, subsequently joining Alcatel Telecom as Senior Executive Vice President in March 1997.
She was responsible for international activities and the Group's industrial shareholdings in the energy and nuclear fields. In 1999, she was appointed Chairman and CEO of COGEMA. Anne Lauvergeon is currently also Vice Chairman of the
Supervisory Board of Safran and a non-executive director of Total and Suez.
13.
          Professor Jürgen Schrempp,
aged 61, has been a member of the Board since May 2000 and is a member
    of the Remuneration Committee and the Nominations and Governance Committee. He is former Chairman of the Board of Management of DaimlerChrysler and one of the principal architects of Daimler-Benz's merger with Chrysler in 1998. He became
    Chairman of Daimler-Benz in 1995. He is a non-executive director of the South African Coal, Oil and Gas Corporation (SASOL) and Compagnie Financière Richemont SA, Switzerland. Professor Schrempp is Chairman Emeritus of the Global Business
    Coalition on HIV/AIDS. He has received numerous awards and has also been recognised for his civic leadership and charitable contributions. Amongst other distinctions, he is Commander of the French Legion of Honor and holds South Africa's
    highest civilian award, the Order of Good Hope, conferred upon him by President Nelson Mandela.
14. Luc Vandevelde,
aged 55, joined the Board in September 2003 and is Chairman of the Remuneration
Committee. He is Chairman of the Supervisory Board of Carrefour SA and a director of Société Générale. He is the Founder and Managing Director of Change Capital Partners LLP, a private equity fund. Luc Vandevelde was
formerly Chairman of Marks & Spencer Group Plc and Chief Executive Officer of Promodes, and he has held senior European and international roles with Kraft General Foods.
15. Philip Yea,
aged 51, became a member of the Board in September 2005 and is a member of the
Remuneration Committee. He is the Chief Executive Officer of 3i Group plc, having been appointed to that role in July 2004. Prior to joining 3i, he was Managing Director of Investcorp and, from 1997 to 1999, the Group Finance Director of Diageo plc
following the merger of Guinness plc, where he was Finance Director, and Grand Metropolitan plc. He has previously held non-executive roles at HBOS plc and Manchester United plc.
Appointed
    since 31 March 2006
Anthony
    Watson,
aged
    61, was appointed to the Board on 1 May 2006, having retired from his role
    as Chief Executive of Hermes Pensions Management Limited, a position he had
    held since 2002. Previously he was Hermes' Chief Investment Officer,
    having been Managing Director of AMP Asset Management and the Chief International
    Investment Officer of Citicorp Investment Management from 1991 until joining
    Hermes in 1998. He is Chairman of Marks & Spencer Pension Trust Ltd, the
    Strategic Investment Board in Northern Ireland and also a non-executive director
    of Hammerson Group Plc and Witan Investment Trust Plc.
51
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Board of Directors and Group Management
continued
Senior Management
Members of the Executive Committee who are not also executive directors are regarded as senior managers of the Company.
Executive Committee
Chaired
by Arun Sarin,
this committee focuses on the Group's strategy, financial structure and
planning, succession planning, organisational development and Group-wide policies.
The Executive Committee membership comprises the Executive Directors, details
of whom are shown on pages 50 to 51, and the senior managers who are listed below:
Brian Clark,
Group Human Resources Director, aged 57, was appointed to this position in April 2005. He
joined Vodafone in 1997 and, before his current position, was Chief Executive, Asia Pacific Region. Prior to joining Vodafone, he was Managing Director and Chief Executive Officer of Telkom SA Limited, South Africa.
Paul Donovan,
Chief
Executive Officer, EMAPA (Central Europe, Middle East, Asia Pacific and Affiliates),
aged 47, was appointed to this position on 1 May 2006. He joined Vodafone in
1999 as Managing Director – Commercial, was appointed Chief Executive of Vodafone Ireland in 2001 and became Chief Executive Officer, Other Vodafone Subsidiaries in
January 2005, managing fourteen of Vodafone's controlled entities. He has
over fifteen years experience in the telecommunications and IT industries and
has held senior roles at BT, One2One and Optus Communications and, prior to that,
marketing
roles at the Mars Group, Coca Cola and Schweppes Beverages.
Warren Finegold,
Chief
Executive, Global Business Development, aged 49, was appointed to this position
and joined the Executive Committee on 24 April 2006. He was previously a Managing
Director of UBS Investment Bank and head of its technology team in Europe. He
is responsible for Business Development, M&A and Partner Networks.
Alan Harper,
Group Strategy and Business Integration Director, aged 49, joined Vodafone in 1995 as Group
Commercial Director and he subsequently became Managing Director of Vodafone UK. He was appointed to his current position in July 2000. Prior to joining the Group, he held the post of Business Strategy Director with Mercury One2One and senior roles
with Unitel and STC Telecoms. He is also a member of the Vodafone D2 GmbH Supervisory Board and Chairman of the Vodafone UK Foundation
Simon Lewis,
Group Corporate Affairs Director, aged 47, joined Vodafone in November 2004. He previously
held senior roles at Centrica Plc including Managing Director, Europe and Group Director of Communications and Public Policy. Prior to that he was Director of Corporate Affairs at NatWest Group and the Head of Public Relations at SG Warburg plc. He
was President of the Institute of Public Relations in 1997 and is a Visiting Professor at the Cardiff School of Journalism. In 1998, he was seconded to Buckingham Palace for two years as the first Communications Secretary to the Queen. He is a
Fulbright Commissioner and a trustee of The Vodafone Group Foundation.
Tim
    Miles,
Global
    Chief Technology Officer, aged 48, was appointed to this position on
1
    April 2006. He joined Vodafone New Zealand in 2001 as Director of Business
    Markets and was appointed Managing Director of Vodafone New Zealand in 2002.
    In April 2005, he joined Vodafone UK as Chief Executive Officer before moving
    to his present role. He has over twenty years' experience in the IT and
    telecommunications industry. Prior to joining Vodafone, he was Vice President
    for Global Industries, Unisys Corporation, USA and, before that, held executive
    positions with Data General and IBM.
Bill Morrow,
Chief Executive Officer, Europe, aged 46, was appointed to this position on 1 May 2006 after
ten years with the Vodafone Group. Over the last ten years, he has held various positions, including President of Vodafone Japan, Chief Executive of Vodafone UK and President of Japan Telecom. He has twenty-six years of experience in the
telecommunications industry, holding senior leadership roles in the USA, Asia and Europe. Bill Morrow is widely recognised for operational performance lifts, technology management and company restructuring.
Frank Rovekamp,
Global Chief Marketing Officer, aged 51, was appointed to this position and joined the
Executive Committee on 1 May 2006. He joined Vodafone four years ago as Marketing Director and a Member of the Management Board of Vodafone Netherlands and later moved to Vodafone Germany as Chief Marketing Officer and a member of the Management
Board. Before joining Vodafone, Frank held roles as President and Chief Executive Officer of Beyoo and Chief Marketing Officer with KLM Royal Dutch Airlines.
Stephen Scott,
Group
General Counsel and Company Secretary, aged 52, was appointed Group General Counsel
and Company Secretary in 1991, prior to which he was employed in the Racal Group
legal department, having moved into industry in 1980 from private law practice
in London. He is a director of the Company's UK pension trustee company
and of ShareGift (the Orr Mackintosh Foundation Limited) and is a director and
trustee of LawWorks (the Solicitors Pro Bono Group Limited).
Strategy Board
The Strategy Board meets two or three times per year to discuss strategy. This is attended by Executive Committee members and the Chief Executive Officers of the major operating
companies and other selected individuals based on Strategy Board topics.
Other Board and Executive Committee members
The following members also served on the Board or the Executive Committee during the 2006 financial year:
Peter Bamford
was an executive director until 7 March 2006.
Ken Hydon
was an executive director until he retired on 26 July 2005.
Sir David Scholey CBE
was a
non-executive director until he retired on 26 July 2005.
Pietro Guindani,
Chief Executive Italy, was a member of Executive Committee until
1
May 2006.
Fritz Joussen,
Chief Executive Germany, was a member of Executive Committee until
1
May 2006.
Jurgen von Kuczkowski
was a member of the Executive Committee until he retired on 30 September 2005.
Shiro Tsuda,
Executive Chairman and Chairman of the Board, Vodafone K.K., was an Executive Committee
member until the completion of the sale of the Japanese business on 27 April 2006.
Phil Williams
was a member of the Executive Committee until he retired on 31 July 2005.
52
Vodafone
            Group Plc
Annual Report 2006
Back to Contents
Governance
Contents
Page
Corporate
        Governance
53
–
        Introduction
53
–
        Directors and Organisation
54
–
        Executive Management
55
–
        Committees of the Board
55
–
        Statement on Internal Control
55
–
        Control Environment
56
–
        Review of Effectiveness
56
–
        Relations with Shareholders
56
–
        Political Donations
56
–
        Directors' Indemnities
56
–
        Auditors
57
–
        Report from the Audit Committee
57
Employees
58
–
        Employee Involvement
58
–
        Employment Policies
58
–
        Equal Opportunities
58
–
        The Disabled
58
–
        Health, Safety and Wellbeing
58
Corporate
        Responsibility and Environmental Issues
59
–
        Corporate Responsibility
59
–
        Environmental Issues
60
–
        Environmental Performance Indicators
60
Board's
        Report to Shareholders on Directors' Remuneration
61
–
        Remuneration Committee
61
–
        Remuneration Policy
61
–
        Report on Executive Directors' Remuneration for the 2006
Financial
        Year and Subsequent Periods
62
–
        Audited Information
65
Directors'
        Statement of Responsibility
70
–
        Disclosure of Information to Auditors
70
–
        Going Concern
70
Corporate Governance
Introduction
Statement
  of corporate governance policy
The Board
  of directors of the Company is committed to high standards of corporate governance,
  which it considers are critical to business integrity and to maintaining investors'
  trust in the Company. The Group expects all its directors and employees to act
  with honesty, integrity and fairness. The Group will strive to act in accordance
  with the laws and customs of the countries in which it operates; adopt proper
  standards of business practice and procedure; operate with integrity; and observe
  and respect the culture of every country in which it does business.
The Combined
  Code
The Company's
  ordinary shares are listed in the United Kingdom on the London Stock Exchange.
  As such, the Company is required to make a disclosure statement concerning its
  application of the principles of and compliance with the provisions of the revised
  Combined Code on corporate governance (the "Combined Code"). For the
  year ended 31 March 2006, the Board confirms that the Company has been in compliance with the provisions of section 1 of the Combined Code. The disclosures provided below are nevertheless
intended to provide an explanation of the Company's corporate governance policies and practices.
US listing
  requirements
The Company's
  ADSs are listed on the NYSE and the Company is, therefore, subject to the rules
  of the NYSE as well as US securities laws and the rules of the SEC. The NYSE
  requires US companies listed on the exchange to comply with the NYSE's
  corporate governance rules but foreign private issuers, such as the Company,
  are exempt from most of those rules. However, pursuant to NYSE Rule 303A.11,
  the Company is required to disclose a summary of any significant ways in which
  the corporate governance practices it follows differ from those required by
  the NYSE for US companies. A summary of such differences is set out below.
The Company has established a Disclosure Committee with responsibility for reviewing and approving controls and procedures over the public disclosure of financial and related
information, and other procedures necessary to enable the Chief Executive and Chief Financial Officer to provide their Certifications of the Annual Report on Form 20-F that is filed with the SEC.
Section 404 of the Sarbanes-Oxley Act of 2002 (US) requires the Company to annually assess and make public statements about the quality and effectiveness of its internal controls over
financial reporting. As a non-US company, Vodafone is first required to report on its compliance with section 404 for the year ended 31 March 2007. Management's report must describe conclusions about the effectiveness of the Company's internal control over financial reporting based on management's evaluation as of the end of the Company's most recent fiscal year.
The Company has established a Steering Committee to provide strategic direction to the Company's section 404 compliance efforts and a Programme Management Office which monitors
progress and provides detailed guidance to the compliance teams that have been set up in the Group's subsidiaries and central functions. The Company's Audit Committee also plays an active role in monitoring these efforts. The Audit
Committee receives progress updates at each of its meetings as well as a bi-annual status presentation from the Programme Management Office. The Company's external auditors have been consulted throughout the project and will continue to be
involved as the Company finalises its review.
The Company has reviewed the structure and operation of its "entity level" control environment: the overarching structure of review and monitoring essential to the
management of its business.
Each of the Company's subsidiaries and central functions has ensured that the relevant processes and controls are documented to appropriate standards, taking into account the
guidance provided by the US Public Company Accounting Oversight Board's Auditing Standard No. 2 and subsequent SEC Staff Questions and Answers related to the standard. The approach taken has been to identify the key financial reporting
processes so that, in aggregate, the Company has reasonable assurance regarding the reliability of its financial reporting and the preparation of financial statements.
The Company is making satisfactory progress on the work required to enable it to report on its compliance with section 404 at 31 March 2007.
The Company has also adopted a corporate Code of Ethics for senior executive, financial and accounting officers, separate from and additional to its Business Principles, described
below. A copy of this code is available on the Group's website at www.vodafone.com.
Differences
  from New York Stock Exchange corporate governance practices
Independence
The NYSE rules
  require that a majority of the Board must be comprised of independent directors
  and the rules include detailed tests that US companies must use for determining
  independence. The Combined Code requires a company's board of directors
  to assess and make a determination as to the independence of its directors.
  While the Board does not explicitly take into consideration the NYSE's
  detailed tests, it has carried out an assessment based on the requirements of
  the Combined Code and has determined in its judgement that all of the non-executive
  directors are independent within those requirements. As at the date of this
  Annual Report, the Board comprised the Chairman, four executive directors and
  eleven non-executive directors.
Committees
Under NYSE
  rules, US companies are required to have a nominating and corporate governance
  committee and a compensation committee, each composed entirely of independent
  directors with a written charter that addresses the Committees' purpose
  and responsibilities. The Company's Nominations and Governance Committee
  and Remuneration Committee have terms of reference and composition that comply
  with the Combined Code requirements. The Nominations and Governance Committee
  is chaired by the Chairman of the Board, and its other members are non-executive
  directors of the Company and the Chief Executive. The Remuneration Committee
  is composed entirely of non-executive directors whom the Board has determined
  to be independent. The Company's Audit Committee is composed entirely of
  non-executive directors whom the Board has determined to be independent and
  who meet the requirements of Rule 10A-3 of the Securities Exchange Act. The
  Company considers that the terms of reference of these committees, which are
  available on its website at www.vodafone.com, are generally responsive to the
  relevant NYSE rules but may not address all aspects of these rules.
Corporate
  governance guidelines
Under NYSE
  rules, US companies must adopt and disclose corporate governance guidelines.
  Vodafone has posted its statement of compliance with the Combined Code on its
  website at www.vodafone.com. The Company also has adopted a Group Governance
  Manual which provides the first level of the framework within which its businesses
  operate. The manual is a reference for Chief Executives and their teams and
  applies to all directors and employees. The Company considers that its corporate
  governance guidelines are generally responsive to, but may not address all aspects
  of, the relevant NYSE rules.
Vodafone
      Group Plc
Annual Report 2006
53
Back to Contents
Corporate
  Governance
continued
Business
  principles
In addition
  to the formal requirements of the Listing Authorities and Stock Exchanges described
  above, the Group has developed and implemented its own Business Principles which
  define its relationships with all of its stakeholders, govern how Vodafone conducts
  its day-to-day business and represents the additional commitments the Group
  makes to its stakeholders. These can be found on the Group's website at
  www.vodafone.com.
The Business Principles apply to all subsidiary companies in the Group. Chief Executives are responsible for ensuring application of the Business Principles within their business.
Vodafone also promotes the Business Principles to its joint venture companies, associated undertakings, business partners and third parties.
Every employee is expected to act in accordance with the Business Principles. A confidential email facility has been established for employees to report any concerns.
The Group tracks the implementation of its Business Principles through its internal audits.
Directors
  and Organisation
Board composition
The Company's
  Board consists of 16 directors, 12 of whom served throughout the 2006 financial
  year. At 31 March 2006, in addition to the Chairman, Lord MacLaurin, there were
  four executive directors and ten non-executive directors. The Deputy Chairman,
  Paul Hazen, is the nominated senior independent director and his role includes
  being available for approach or representation by directors or significant shareholders
  who may feel inhibited from raising issues with the Chairman. He is also responsible
  for conducting an annual review of the performance of the Chairman and, in the
  event it should be necessary, convening an annual meeting of the non-executive
  directors.
Philip Yea, Anne Lauvergeon and Anthony Watson joined the Board as non-executive directors on 1 September 2005, 1 November 2005 and 1 May 2006 respectively. Peter Bamford ceased to be
a member of the Board on 7 March 2006. Lord MacLaurin, Sir Julian Horn-Smith, Paul Hazen and Penny Hughes will retire on conclusion of the Company's AGM on 25 July 2006. Sir John Bond will become the Chairman of the Company following the
retirement of Lord MacLaurin and John Buchanan will succeed Paul Hazen as the Deputy Chairman and senior independent director. The Company considers all of its present non-executive directors to be fully independent. The executive directors are Arun
Sarin (Chief Executive), Sir Julian Horn-Smith, Thomas Geitner and Andy Halford.
The following table shows directors' attendance at meetings during the 2006 financial year:
Nominations
      and
Audit
Governance
Remuneration
Board
Committee
Committee
Committee
Number
      of meetings
during
      the year
to 31
      March 2006
8
5
3
5
Lord
      MacLaurin
8
2
(1)
Paul
      Hazen
8
1
2
Arun
      Sarin
8
3
Sir
      Julian Horn-Smith
8
Peter
      Bamford
(2)
7
Thomas
      Geitner
8
Andy
      Halford
(3)
6
Ken
      Hydon
(4)
2
Sir
      John Bond
7
2
4
Dr Michael
      Boskin
8
5
(1)(5)
5
Lord
      Broers
7
5
1
John
      Buchanan
7
5
Penny
      Hughes
8
4
2
Anne
      Lauvergeon
(6)
3
1
Sir
      David Scholey
(4)
2
1
Professor
      Jürgen Schrempp
8
2
5
Luc
      Vandevelde
7
4
(1)(7)
Philip
      Yea
(8)
6
2
Notes:
(1)
Committee Chairman.
(2)
Peter Bamford ceased to be a member of the Board on 7 March 2006.
(3)
Andy Halford joined the Board on 26 July 2005 and from then until 31 March 2006 there were six Board meetings.
(4)
Ken Hydon and Sir David Scholey retired from the Board on conclusion of the AGM on 26 July 2005.
(5)
Dr Michael Boskin succeeded Paul Hazen as Chairman of the Audit Committee during the year.
(6)
Anne Lauvergeon joined the Board on 1 November 2005 and from then until 31 March 2006 there were four Board meetings.
(7)
Luc Vandevelde succeeded Penny Hughes as Chairman of the Remuneration Committee during the year.
(8)
Philip Yea joined the Board on 1 September 2005 and from then until 31 March 2006 there were six Board meetings.
In addition to regular Board meetings, there are a number of other meetings to deal with specific matters. Directors unable to attend a Board meeting because of another engagement, as
was the case for a number of directors in the year, are nevertheless provided with all the papers and information relevant for such meeting and are able to discuss issues arising in the meeting with the Chairman or the Chief Executive.
Re-election
  of Directors
Although not
  required by the Articles, in the interests of good corporate governance, the
  directors have resolved that they will all submit themselves for annual re-election
  at the AGM. Accordingly, at the AGM to be held on 25 July 2006, other than Lord
  MacLaurin, Sir Julian Horn-Smith, Paul Hazen and Penny Hughes who are retiring
  at the conclusion of the AGM, all the directors will be retiring and, being
  eligible and on the recommendation of the Nominations and Governance Committee,
  will offer themselves for re-election.
Performance
  evaluation
Performance
  evaluation of the Board, its Committees and individual directors takes place
  on an annual basis and is conducted within the terms of reference of the Nominations
  and Governance Committee with the aim of improving individual contributions,
  the effectiveness of the Board and its Committees and the Group's performance.
  The Chairman leads the assessment of the Chief Executive and the non-executive
  directors, the Chief Executive undertakes the performance reviews for the executive
  directors and the senior independent director conducts the review of the performance
  of the Chairman. Each Board Committee undertakes a review of its own work and,
  in relation to the performance of the Board, each director is required to complete
  a comprehensive questionnaire, the results of which are analysed and discussed
  by the Nominations and Governance Committee prior to the presentation of recommendations
  to the Board. The evaluation process is designed to cover Board processes, the
  structure and capability of the Board, strategic alignment, Board dynamics and
  the skills brought to the Board by each director. A series of questionnaires
  has also been developed to facilitate the evaluation processes for each Board
  Committee.
54
Vodafone
      Group Plc
Annual Report 2006
Back to Contents
Governance
The evaluations found the performance of each director to be effective and concluded that the Board provides the effective leadership and control required for a listed company. The
Nominations and Governance Committee confirmed to the Board that the contributions made by the directors offering themselves for re-election at the AGM in July 2006 continued to be effective and the Company should support their re-election.
Information
  and professional development
Each member
  of the Board has immediate access to a dedicated online team room and can access
  monthly information including actual financial results, reports from the executive
  directors in respect of their areas of responsibility and the Chief Executive's
  report which deals, amongst other things, with investor relations, giving Board
  members an opportunity to develop an understanding of the views of major investors.
  These matters are discussed at each Board meeting. From time to time, the Board
  receives detailed presentations from non-Board members on matters of significance
  or on new opportunities for the Group. Financial plans, including budgets and
  forecasts, are regularly discussed at Board meetings. The non-executive directors
  periodically visit different parts of the Group and are provided with briefings
  and information to assist them in performing their duties. The non-executive
  directors and the Chairman regularly meet without executives present.
The Board is confident that all its members have the knowledge, ability and experience to perform the functions required of a director of a listed company. On appointment, all
directors are provided with appropriate training and guidance as to their duties, responsibilities and liabilities as a director of a public and listed company and also have the opportunity to discuss organisational, operational and administrative
matters with the Chairman, the Chief Executive and the Company Secretary. When considered necessary, more formal training is provided.
Matters
  for the Board
The Board
  has a formal schedule of matters specifically referred to it for decision, including:
•
the
      approval of Group commercial strategy;
•
Group
      strategic and long-term plans;
•
major
      capital projects;
•
approving
      annual budgets and operating plans;
•
devising
      and reviewing the Group's corporate governance structure;
•
Group
      financial structure (including tax and treasury policy);
•
approving
      statutory accounts and shareholder communications;
•
Group
      risk management; and
•
material
      contracts not in the ordinary course of business.
This schedule
  is reviewed periodically. It was last formally reviewed and updated by the Nominations
  and Governance Committee in January 2004 and its proposals were subsequently
  approved by the Board. Its currency and continued validity were assessed as
  part of the performance evaluations conducted in the 2006 financial year described
  earlier in this Report. The agendas for Board meetings are initially developed
  by the Chief Executive and the Company Secretary and are finalised by the Chairman.
  The directors have access to the advice and services of the Company Secretary
  and, both as a group and individually, are entitled to take independent professional
  advice at the cost of the Company on matters relating to the proper discharge
  of their responsibilities.
Executive
  Management
The executive
  directors, together with certain other Group functional heads and regional chief
  executives, meet 12 times a year as the Executive Committee under the chairmanship
  of the Chief Executive. The Executive Committee is responsible for the day-to-day
  management of the Group's businesses, the overall financial performance
  of the Group in fulfilment of strategy, plans and budgets and Group capital
  structure and funding. It also reviews major acquisitions and disposals.
Committees
  of the Board
The standing
  Board Committees are the Audit Committee, the Nominations and Governance Committee and the Remuneration Committee. The composition and terms of reference of these committees are published on the Group's website at www.vodafone.com. The
Secretary to these standing Board Committees is the Company Secretary or his nominee.
The Audit
  Committee
The Audit
  Committee is comprised of financially literate members having the necessary
  ability and experience to understand financial statements. Solely for the purpose
  of fulfilling the requirements of the Sarbanes-Oxley Act and the Combined Code,
  the Board
has
  designated John Buchanan, who is an independent non-executive director, satisfying
  the independence requirements of Rule 10A-3 of the US Securities Exchange Act
  1934, as its financial expert on the Audit Committee. Further details of John
  Buchanan can be found in "Board of Directors and Group Management".
Under its terms of reference, the Audit Committee is required, amongst other things, to oversee the relationship with the external auditors, to review the Company's preliminary
results announcement, interim results and annual financial statements, to monitor compliance with statutory and listing requirements for any exchange on which the Company's shares are quoted, to review the scope, extent and effectiveness of the
activity of the Group Internal Audit Department, to engage independent advisers as it determines is necessary and to perform investigations.
The Audit Committee reports to the Board on the quality and acceptability of the Company's accounting policies and practices, including without limitation, critical accounting
policies and practices. The Audit Committee also plays an active role in monitoring the Company's compliance efforts for section 404 of the Sarbanes-Oxley Act and receives progress updates at each of its meetings as well as a bi-annual status
presentation from the Programme Management Office.
At least twice a year, the Audit Committee meets separately with the external auditors and the Group Audit Director without management being present. Further details on the oversight
of the relationships with the external auditors can be found under "Auditors" and the "Report from the Audit Committee" which are set out on page 57.
The Nominations
  and Governance Committee
The Nominations
  and Governance Committee, which provides a formal and transparent procedure
  for the appointment of new directors to the Board, generally engages external
  consultants to advise on prospective Board appointees. This year, the Committee
  recommended the appointment of three further non-executive directors. Detailed
  role profiles were agreed by the Committee before external search consultants
  were engaged to prepare a shortlist of potentially suitable candidates. Only
  after a rigorous interview process were the appointments recommended to the
  Board.
The Committee also reviewed the Group's succession plans, directed the performance evaluations described earlier in this Annual Report, discussed matters of corporate governance
and assessed the independence of non-executive directors prior to reporting to the Board.
The Remuneration
  Committee
The Remuneration
  Committee is responsible to the Board for the assessment and recommendation
  of policy on executive remuneration and packages for individual executive directors.
  The Committee has regular private sessions without executive directors present.
  Further information on the Committee's activities is contained in the "Board's
  Report to Shareholders on Directors' Remuneration".
Statement
  on Internal Control
Introduction
The Board
  has established procedures that implement in full the Turnbull Guidance, "Internal
  Control: Guidance for Directors on the Combined Code", for the year under
  review and to the date of approval of the Annual Report. These procedures, which
  are subject to regular review, provide an ongoing process for identifying, evaluating
  and managing the significant risks faced by the Group.
Responsibility
The Board
  has overall responsibility for the system of internal control. A sound system
  of internal control is designed to manage rather than eliminate the risk of
  failure to achieve business objectives, and can only provide reasonable and
  not absolute assurance against material misstatement or loss. The process of
  managing the risks associated with social, environmental and ethical impacts
  is also discussed under "Corporate Responsibility and Environmental Issues",
  on pages 59 to 60.
Control
  structure
The Board
  sets the policy on internal control that is implemented by management. This
  is achieved through a clearly defined operating structure with lines of responsibility
  and delegated authority. The Executive Committee, chaired by the Chief Executive,
  manages this on a day-to-day basis.
The Group's brand essence, which encapsulates the Group's commitment to integrity and continuous improvement, in combination with the Group's Business Principles, sets
the tone of the Group and reflects the control consciousness of management.
Written policies and procedures have been issued which clearly define the limits of delegated authority and provide a framework for management to deal with areas of
Vodafone
      Group Plc
Annual Report 2006
55
Back to Contents
Corporate Governance
continued
significant business risk. These policies and procedures are reviewed and, where necessary, updated at Executive Committee meetings.
Control Environment
The Group's
  operating procedures include a comprehensive system for reporting information
  to the directors. This system is properly documented and regularly reviewed.
Budgets are prepared by subsidiary management and subject to review by both regional
management and the directors. Forecasts are revised on a quarterly basis and
compared against budget. When setting budgets and forecasts, management identifies,
evaluates and reports on the potential significant business risks.
The Executive Committee and the Board review management reports on the financial
results and key operating statistics.
Emphasis is placed
on the quality and abilities of the Group's employees with continuing education,
training and development actively encouraged through a wide variety of schemes
and programmes. The Group has adopted a set of values to act as a framework for
its people to exercise judgement and make decisions on a consistent basis.
Directors are appointed to associated undertakings and joint ventures and attend
the board meetings and review the key financial information of those undertakings.
Clear guidance is given to those directors on the preparation that should take
place before these board meetings and their activity at the board meeting. It
is the Group's policy, where possible, that its auditors are appointed as
auditors of associated
companies and joint ventures.
The acquisition of any business requires a rigorous analysis of the financial
implications of the acquisition and key performance figures. A sensitivity analysis
takes place of the key assumptions made in the analysis. Post investment appraisals
of the Group's
investments are conducted on a periodic and timely basis.
The Board reviews a half-yearly report detailing any significant legal actions
faced by Group companies.
The Executive Committee monitors legal, environmental and regulatory matters
and approves appropriate responses or amendments to existing policy.
Monitoring and review activities
There
are clear processes for monitoring the system of internal control and reporting
any significant control failings or weaknesses together with details of corrective
action.
A formal annual confirmation is provided by the chief executive officer and chief
financial officer of each Group company certifying the operation of their control
systems and highlighting any weaknesses. Regional management, the Audit Committee
and the Board review the results of this confirmation.
The Chief Executive and the Chief Financial Officer undertake a review of the
quality and timeliness of disclosures that includes formal annual meetings with
the operating company or
regional chief executives and the Disclosure Committee.
The Group Internal Audit Department, reporting directly to the Audit Committee,
undertakes periodic examination of business processes on a risk basis and reports
on controls
throughout the Group.
Reports from the external
auditors, Deloitte & Touche LLP, on certain internal controls and relevant
financial reporting matters, are presented to the Audit Committee and
management.
Review of Effectiveness
The
directors, the Chief Executive and the Chief Financial Officer consider that
any controls and procedures, no matter how well designed and operated, can provide
only reasonable and not absolute assurance of achieving the desired control objectives.
The Group's management is required to apply judgement in evaluating the
risks facing the Group in achieving its objectives, in determining the risks
that are considered acceptable to bear, in assessing the likelihood of the risks
concerned materialising, in identifying the company's ability to reduce
the incidence and impact on the business of risks that do materialise and in
ensuring the costs of operating particular controls are proportionate to the
benefit.
The directors, the Chief Executive and the Chief Financial Officer confirm that
they have reviewed the effectiveness of the system of internal control and the
disclosure controls and procedures through the monitoring process set out above,
which as noted separately on page 55 does not include any statement of compliance
with section 404
of the Sarbanes-Oxley Act, and are not aware of any significant weakness or deficiency
in the Group's system of internal control. The directors, the Chief Executive
and the Chief Financial Officer have evaluated the effectiveness of the disclosure
controls and procedures and, based on that evaluation, have concluded that the
disclosure controls and procedures are effective as at the end of the period
covered by
this Annual
Report.
During
    the period covered by this Annual Report, there were no changes in the Company's
    internal control over financial reporting that have materially affected or
    are reasonably likely to materially affect the effectiveness of the internal
    controls over financial reporting.
Relations with Shareholders
The
Company is committed to communicating its strategy and activities clearly to
its shareholders and, to that end, maintains an active dialogue with investors
through a planned programme of investor relations activities. The investor relations
programme includes formal presentations of full year and interim results and
quarterly statements on key performance indicators. The Company holds briefing
meetings with its major institutional shareholders in the UK, the US and in Continental
Europe, after the interim results and preliminary announcement, to ensure that
the investing
community receives a balanced and complete view of the Group's performance
and the issues faced by the Group. Telecommunications analysts are invited to
presentations of the financial results and senior executives across the business
attend relevant meetings and conferences throughout the year. During the year,
the Company hosts investors and analysts sessions at which senior management
from its largest operating subsidiaries, its largest joint venture and certain
associated undertakings deliver presentations which provide an overview of each
of the individual businesses. The Company, through its Investor Relations team,
responds to enquiries from shareholders. The Chief Executive and the Chief Financial
Officer meet regularly with institutional investors and analysts, who also have
access to the Chairman
if they so
require, to discuss business performance.
The principal communication with private investors is through the provision of
the Annual Review and Summary Financial Statement, the interim results and the
AGM, an occasion which is attended
by all the Company's directors and at which all shareholders present are
given the opportunity to question the Chairman and the Board as well as the Chairmen
of the Audit, Remuneration and Nominations and Governance Committees. A summary
presentation of results and development plans is also given by the Chairman at
the AGM before dealing with the formal business of the meeting. The AGM is broadcast
live on the Group's website, www.vodafone.com, and a recording of the webcast
can subsequently be viewed on the website. All substantive resolutions at the
Company's AGMs are decided on a poll. The poll is conducted by the Company's
Registrars and scrutinised by Electoral Reform Services. The proxy votes cast
in relation to all resolutions are disclosed to those in attendance at the meeting
and the results of the poll are published on the Company's website and announced
via the regulatory news service. Financial and other information is made available
on the Company's website, www.vodafone.com, which is regularly
updated.
Political Donations
At
the AGM on 26 July
2005, the Board sought and obtained shareholders' approval to enable the
Group to make donations to EU Political Organisations or incur EU Political Expenditure,
under the relevant provisions of the Political Parties, Elections and Referendums
Act 2000 ("the Act"). The approval given restricted such expenditure
to an aggregate limit of £100,000 in the period of 12 months following
the date of the AGM.
The Group has made no political donations during the year.
At this year's AGM, to be held on 25 July 2006, the directors propose to
seek a renewal of shareholders' approval for a period of three years (until
the AGM in 2009). The amount of the approval for each year until the AGM in 2009
will again be restricted to an aggregate amount of £100,000 (£50,000
in respect of donations to EU Political Organisations and £50,000 in respect
of EU Political
Expenditure).
Although the directors
are seeking shareholders' approval for the next three years, as with previous
annual approvals, the Group has no intention of changing its current policy and
practice of not making political donations and will not do so without the specific
endorsement of shareholders. The Board seeks the approval on a precautionary
basis, to avoid any possibility of unintentionally breaching the Act.
Directors' Indemnities
The
Companies (Audit Investigations and Community Enterprise) Act 2004 came into
force on 6 April 2005 and, amongst other things, changed the provisions of Section
310 of the Companies Act 1985 to give companies the power to extend indemnities
to directors against liability to third parties (excluding criminal and regulatory
penalties)
and to pay directors' legal costs as incurred provided that they are reimbursed
to the Company if the individual is convicted or, in an action brought by the
Company, judgment is given against the director. Accordingly, the Company sought
and obtained
56
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
shareholder approval at the AGM in July 2005 to amend its Memorandum and Articles of Association to give it authority to provide funding for directors' defence costs. Following
that approval, the Company indemnified its directors and will indemnify new directors to the extent permitted by legislation.
Auditors
Following
a recommendation by the Audit Committee and, in accordance with section 384 of
the Companies Act 1985, a resolution proposing the re-appointment of Deloitte & Touche
LLP
as auditors to the Company will be put to the AGM.
In their
    assessment of the independence of the auditors and in accordance with the
    US Independence Standards Board Standard No. 1, "Independence Discussions with Audit
Committees", the Audit Committee receives in writing details of relationships between Deloitte & Touche
LLP and the Company that may have a bearing on their independence and receives
confirmation that they are independent of the Company within the meaning of the
securities laws administered by the SEC.
In addition, the Audit Committee pre-approves the audit fee after a review of both the level of the audit fee against other comparable companies, including those in the
telecommunications industry, and the level and nature of non-audit fees, as part of its review of the adequacy and objectivity of the audit process.
In a further
    measure to ensure auditor independence is not compromised, policies have
    been adopted to provide for the pre-approval by the Audit Committee of all
    permitted non-audit
services by Deloitte & Touche LLP. Should there be an immediate requirement for permitted non-audit services to be provided by Deloitte & Touche
LLP which have not been pre-approved by the Audit Committee, the policies provide
that the Group Audit Director will consult with the Chairman of the Audit Committee
for pre-approval.
In addition
    to their statutory duties, Deloitte & Touche LLP are also employed where,
    as a result of their position as auditors, they either must, or are best
    placed to, perform the work in question. This is primarily work in relation
    to matters such as shareholder circulars, Group borrowings, regulatory filings
    and business acquisitions and disposals. Other work is awarded on the basis
    of competitive tender.
During the
    year, Deloitte & Touche LLP and its affiliates charged the Group's subsidiary undertakings £4 million (2005: £4 million) for audit services and a
further £4 million (2005: £3 million) for non-audit assignments.
An analysis of these fees can be found in note 4 to the Consolidated Financial
Statements.
Report
    from the Audit Committee
The
composition of the Audit Committee is shown in the table on page 54 and its terms
of
    reference are discussed under "Committees of the Board – The Audit
Committee".
During the year ended 31 March 2006, the principal activities of the Committee were as follows:
Financial statements
The
Committee considered reports from the Chief Financial Officer and the Group Financial
    Controller on the half-year and annual financial statements. It also considered
    reports from
the external auditors, Deloitte & Touche LLP, on the scope and outcome of
the annual audit.
The financial statements were reviewed in the light of these reports and the results of that review reported to the Board.
Risk management and internal control
The
Committee reviewed the process by which the Group evaluated its control environment,
    its risk assessment process and the way in which significant business risks
    were managed. It
also considered the Group Audit department's reports on the effectiveness
of internal controls, significant frauds and any fraud that involved management
or employees with a significant role in internal controls.
The Committee also reviewed and approved arrangements by which staff could, in confidence, raise concerns about possible improprieties in matters of financial reporting or other
matters. This was achieved through using existing reporting procedures and a web site with a dedicated anonymous email feature.
External auditors
The
Committee reviewed the letter from Deloitte & Touche LLP confirming their independence and objectivity. It also reviewed and pre-approved the scope of non-audit services
provided by Deloitte & Touche LLP to ensure that there was no impairment
of independence.
The Committee
    pre-approved the scope and fees for audit services provided by Deloitte & Touche
    LLP and confirmed the wording of the recommendations put by the Board to
    the
shareholders on the appointment and retention of the external auditors.
Private
    meetings were held with Deloitte & Touche LLP to ensure that there were
    no restrictions on the scope of their audit and to discuss any items the
    auditors did not wish to
raise with management present.
Internal audit
The
Committee engaged in discussion and review of the Group Audit Department's
audit plan for the year, together with its resource requirements. Private meetings
were held with
the Group Audit Director.
Audit Committee effectiveness
The Audit Committee conducts a formal review of its effectiveness annually and concluded this year that it was effective and able to fulfil its terms of reference.
Dr Michael Boskin
On
behalf of the Audit Committee
Vodafone
            Group Plc
Annual Report 2006
57
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Employees
Vodafone employs approximately 60,000 people worldwide, with a goal to recruit, develop and retain the most talented, motivated people that are well aligned with the Vodafone brand
  essence. The Company aims to do this by providing a good, safe working environment, treating people with respect and offering attractive incentives and opportunities. Training and development programmes help employees to develop their skills and
  experience and to reach their full potential, benefiting themselves and the Company.
Employee Involvement
The
Board's aim is to ensure that Vodafone people understand the Group's
    strategic goals and the mutual obligations of working in a high performing,
    values-based
organisation.
Vodafone's values continue to provide a common way of doing things and are implicit in all that the Group does for and with its shareholders, customers and employees. During the
year, Vodafone launched a major employee engagement initiative to bring alive the essence of the Vodafone brand. 'Red, Rock Solid, Restless' is
the cornerstone to changing the culture of the Group by inspiring the behaviour
of employees in
their interactions with customers and other stakeholders.
The Board
    places a high priority on effective employee communications to create a dialogue
    with the Group's people. In addition to the more traditional channels, the Group
increasingly uses its own products and services, such as SMS and audio based messaging, and is currently trialling 3G video based internal communications media in some local markets. This is the natural next step in the evolution of VTV, the
Group's successful intranet based business television service.
The Chief
    Executive and other members of the executive management team continue to
    host the "Talkabout" programme, which aims to visit each of the Group's local
operating companies every year. In the "Talkabout" sessions, the executive team use the opportunity to discuss the Group's
strategic goals with as wide an audience of Vodafone people as possible, listening
to their views and talking about the issues that matter most to them, as well
as exchanging ideas about how Vodafone can serve its customers as a single, global
team.
All of these initiatives are supported and enhanced by a comprehensive range of award winning in-house publications for effectively sharing information with employees on key
performance indicators for the business. The Vodafone intranet was recently included by Nielsen Norman Research in their authoritative list as one of the ten best intranets in the world.
Vodafone's success is driven by the passion and effort of the Group's employees. In return, Vodafone values employees' opinions
    on improving the performance of the Group. Within European subsidiaries,
    employee representatives meet annually with members of the executive management
    team in the Vodafone European Employee Consultative Council to discuss the
    performance and prospects of the Group and significant
trans-national issues.
In 2005, Vodafone carried out its second biennial Employee Survey to measure the levels of employee satisfaction and engagement. 89% of employees from 17 countries, including Japan,
took part to inform the Company on its progression on the key issues highlighted by the first survey in 2003.
The results
    showed that Vodafone employees had responded more positively in 2005 than
    in 2003. Specific results indicated that the overwhelming majority of employees
    are proud to work
for Vodafone, understand the importance of Vodafone's values, know the results expected of them in their jobs and have a good understanding of Vodafone's strategic goals and priorities. The number of employees agreeing with the statement
"I am proud to work for Vodafone" was equal to the high performance norm for companies on the Fortune list of "Most Admired Companies".
Vodafone is focused on continually improving and, as a result, the Company has identified three areas to be addressed through co-ordinated global and local action:
•
To
       take a genuine interest in employees and their development, by taking
       a more proactive approach to developing employees, with a specific emphasis
       on coaching and feedback. This area will be supported by the global launch
       of a performance management process in the next financial year and the
       launch of selected functional 'Academies' which focus on the
       professional and skills development offered
to employees;
•
To
       improve the Group's understanding of the underlying customer focus issues in each market and identify improvements in the service offered. Meeting
customers' requirements remains at the heart of the business and will continue
to differentiate Vodafone from our competition; and
•
To develop practical global frameworks and guidelines to help employees effectively manage change within the business.
The next Employee Survey is scheduled to take place in the 2007 financial year.
Employment Policies
The
Group's employment policies are consistent with the principles of the United Nations Universal Declaration of Human Rights and the International Labour Organisation Core
Conventions and are developed to reflect local legal, cultural and employment requirements. High standards are maintained wherever the Group operates, as Vodafone aims to ensure that the Group is recognised as an employer of choice. Employees at all
levels and in all companies are encouraged to make the greatest possible contribution to the Group's
success. The Group considers its employee relations to be good.
Equal Opportunities
Vodafone does not condone unfair treatment of any kind and operates an equal opportunities policy for all aspects of employment and advancement, regardless of race, nationality, sex,
age, marital status, disability or religious or political belief. In practice, this means that the Group is able to select the best people available for positions on the basis of merit and capability, making the most effective use of the talents and
experience of people in the business, providing them with the opportunity to develop and realise their potential.
The Disabled
The
directors are conscious of the special difficulties experienced by people with
disabilities.
    Every effort is made to ensure ready access to the Group's facilities
    and services and a range of products has been developed for people with special
    needs. In addition, disabled people are assured of full and fair consideration
    for all vacancies for which they offer themselves as suitable candidates
    and efforts are made
to meet their special needs, particularly in relation to access and mobility.
    Where possible, modifications to workplaces have been made to provide access
    and, therefore, job opportunities for the disabled. Every effort is made
    to continue the employment of people who become disabled via the provision
    of additional facilities, job design and the provision of appropriate training.
Health, Safety and Wellbeing
The
health, safety and wellbeing of the Group's customers, employees and others
    who could be affected by its activities are of paramount importance to Vodafone
    and the Group
applies rigorous standards to all of its operations.
The health
    and safety management in each operating company is audited annually and the
    results are submitted in a report for discussion by the Board. The Group's
    annual global health and safety audit has shown a consistent rise in scores
    every year since inception in 2002. New standards, policies and a health
    and safety management system have been implemented, with an increase in consultation,
    participation and best
practice sharing by health and safety professionals from the operating companies.
    These will be further developed in the next financial year.
58
Vodafone
    Group Plc
Annual Report 2006
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Governance
Corporate Responsibility and Environmental Issues
Corporate Responsibility
Vodafone
sees corporate responsibility ("CR") as the process of understanding
the expectations of stakeholders in the Group and taking appropriate action to
meet those expectations where they are realistic and legitimate. Stakeholders
include customers, investors, employees, suppliers, the communities where the
Group operates and where networks are based, governments and regulators and representatives
of civil
society.
CR is relevant across all aspects of business strategy and is encapsulated in
the Group's strategic goal of being a responsible business. The Executive
Committee, chaired by the Chief Executive, receives regular information on CR
and the Director of Corporate Responsibility provides an annual report to the
Board. All mobile operating companies have a representative on their management
boards with responsibility for CR. For purposes of this section of the Annual
Report, all mobile operating companies refers to the Group's mobile operating
subsidiaries and the Group's joint venture in Italy, with the exception
of the newly acquired operations in Czech Republic and Romania and the Swedish
operations which were disposed of in the year. The CR impact of the Japanese
operations has been included in the information presented in this section, reflecting
the Group's responsibility for its impact throughout the 2006 financial
year. Systems for data collection on corporate responsibility and environmental
issues are being put in place for the 2007 financial year for the Czech Republic
and Romania.
CR is at the heart
of Vodafone's values and is clearly linked to one of the Group's four
passions, Passion for the world around us. Vodafone's approach to business
is underpinned by the Business Principles which cover, amongst other things,
environment, employees, individual conduct and community and society. The Business
Principles are available on www.vodafone.com/responsibility/businessprinciples
and are communicated to employees in a number of ways, including induction processes,
websites and briefings. In the 2006 financial year, CR matters were included
within the Group's
development programme for directors and senior managers.
Vodafone aims to integrate CR into the business and this is being reflected in
governance, policy, process and reporting. For example, CR is integrated into
Vodafone's risk management processes such as the formal annual confirmation
provided by each mobile operating company detailing the operation of their controls
system, as
outlined on page 55.
CR performance is closely monitored and reports are provided to most mobile operating
company boards on a regular basis. This has driven demonstrable performance improvement
and is
valuable in benchmarking.
These processes are supported by stakeholder engagement, which seeks to provide
a clear understanding of expectations of performance. The Group engages with
stakeholders in a variety of different ways. For example, during the financial
year, meetings relating to CR issues were held with 15 investors; a quantitative
perception survey was carried out with 146 opinion leaders (including academics,
non governmental organisations and policy makers) in 11 European countries and
face to face meetings were held with non governmental organisations and opinion
formers. This process of stakeholder engagement helps to ensure Vodafone is aware
of the issues relevant to the business and that it is focused on the priority
areas. This is covered in more detail
in the Company's CR Report for the 2006 financial year, which can be found
at www.vodafone.com/responsibility.
Vodafone has maintained
last year's level of independent assessment and assurance of the CR programme
and performance data. The scope of work for the Group's auditors includes
a review of certain environmental, community and health and safety performance
data across the business, the progress achieved against commitments set in the
2005 financial year, as well as to review the management and reporting of CR
matters against the requirements of the assurance standard AA1000 AS, issued
by AccountAbility. This identifies, in all material respects, whether reporting
reflects the material CR issues of the Group as defined by the standard, whether
processes are in place to ensure a complete understanding of the issues, and
whether Vodafone is responding adequately to identified stakeholders' expectations.
The assurance statement is published in the Company's
CR Report.
Over the last year,
progress has been made in responding to the Group's stakeholders' expectations.
The most significant developments are summarised below and further details are
provided in the Company's CR Report and on www.vodafone.com/responsibility.
In addition to the Company's CR Report, ten mobile operating subsidiaries
have produced their own CR reports.
Vodafone is included in the FTSE4Good and Dow Jones Sustainability Index.
Socially inclusive products
Vodafone
  is working to improve people's access to mobile communications and is developing products and services that support health and personal security and use secure mobile
messaging to facilitate micro-finance in developing countries. In February 2006, Vodafone announced a commitment of £5 million over a period of four years to the Group's
Social Investment Fund. The fund facilitates the development of commercially
viable products and services with high social value, particularly those that
increase accessibility. Examples of initiatives during the year include:
•
The Vodafone Speaking Phone with screen reader software for the blind and visually impaired, has been fully launched in six markets and test launched in one other.
An assessment of the availability of handsets with accessibility features and an investigation into the compatibility of hearing aids and mobile phones have been completed.
•
A mobile micro-finance platform called M-pesa has been trialled in Kenya, with support from the UK Department for International Development. The payment platform
is being used to enable customers without local bank infrastructure to move money between accounts and to make remittances.
Parental controls
Two mobile operating companies have implemented parental control tools to enable customers to protect their children by restricting access to adult oriented wap and internet sites. A
further three mobile operating companies have launched access controls for Vodafone live!
Group guidelines on premium rate subscription services have been developed. The
guidelines recommend that mobile operating companies require providers of premium
rate subscription services to advertise clearly and send a confirmation text
to customers when they sign up explaining applicable charges and clearly stating
how to opt out.
Earning the trust of customers
Vodafone
  values its long-term reputation with customers. Several issues are key to maintaining
  customers' trust, including the clarity of the pricing, marketing communications
and the way Vodafone handles the confidentiality of customers' communications
and personal information.
During the year, two major initiatives that provide clearer and easier to understand
costs for customers were launched:
•
Vodafone
       Passport offers clearer pricing for international roaming, with a one
       off connection fee per call. Vodafone Passport won the 2006 GSM Association
       award
for 'Best Roaming Product or Service'. To date, over 6 million customers
have subscribed to Vodafone Passport.
•
For the Vodafone Mobile Connect data card tariffs, which offer high speed internet connection to laptops, a monthly roaming bundle was developed to make roaming
costs more predictable.
In November 2005, Vodafone adopted a group wide privacy policy that covers the
collection, storage
and use of our customers' personal information. The policy is overseen by
a Privacy Steering Group, a cross functional body made up of senior management,
and requires the appointment of a Privacy Officer by each Vodafone mobile operating
company with day-to-day responsibility for compliance. An overview of Vodafone's
Privacy Policy is available at www.vodafone.com/responsibility.
The programme of responsible marketing and advertising continued, shifting the
focus from control to awareness raising. Upheld complaints received by advertising
regulatory bodies were monitored throughout the markets. Most of these related
to price claims and clarity.
Supply chain
The
Group continues to implement Vodafone's Code of Ethical Purchasing ("CEP"),
  which sets out environmental and labour standards for suppliers.
•
Corporate
       responsibility is one of six pillars in Vodafone's overall Supplier
    Performance Management system.
•
Over 80% of purchasing managers and staff from across the Group have received training on the CEP.
•
A risk based approach has been introduced across the Group to prioritise which suppliers require further assessment for compliance against the CEP. In the 2006
financial year, over 600 suppliers have been reviewed for risk and over 80 suppliers have completed a self assessment process. 15 site evaluations have been completed.
Vodafone continues to work with other information and communication technology
companies to develop a common approach to managing CR in the supply chain.
Vodafone
            Group Plc
Annual Report 2006
59
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Corporate
      Responsibility and Environmental Issues
continued
Socio-economic potential of mobiles
Following on from research published in the 2005 financial year on the broader impact of mobile telecommunications in Africa, the Group commissioned and published research into the
impact of mobile phones in healthcare. The study demonstrated how existing voice and text message applications could increase productivity, improve patient health and enable greater access to health services in the developed and developing world.
Further information is available at www.vodafone.com/healthcare.
Social investment
The Vodafone Group Foundation and family of local foundations have continued to implement a programme of grant making activity. In the 2006 financial year, the process of establishing
new local foundations in the Czech Republic and Albania was initiated.
During the year ended 31 March 2006, the Company made cash charitable donations
of £24.0 million to The Vodafone Group Foundation. In addition, Group operating
companies donated
a further £10.0 million to local Vodafone Foundations and a further £6.9
million directly to a variety of causes. These donations total £40.9 million
and include donations of £2.5 million made as required by the terms of
certain network operating licences. More details regarding the activities of
The Vodafone Group Foundation and local Vodafone Foundations can be found in
the Company's
CR Report for the 2006 financial year.
Environmental Issues
The Group continues to monitor and manage the impact of its activities on the environment and is committed to minimising adverse impacts in an appropriate manner. Over the last 12
months, progress has been made across a series of projects that address environmental issues, including mobile phones, masts and health; responsible network deployment; energy use and efficiency; and the reuse and recycling of equipment.
Mobile phones, masts and health
Vodafone
  supports research, aligned to World Health Organisation ("WHO") priorities,
  to resolve scientific uncertainty relating to mobile phones, masts and health,
  and is committed to reducing public concern by making objective information
  widely available to stakeholders and by engaging in open, transparent dialogue.
In the 2006 financial year, the Group engaged with a wide range of external and
internal stakeholders through surveys, guidelines (consistent with WHO advice),
Vodafone websites and other existing forms of communications, to promote a consistent
and high level of understanding on the subject. Vodafone also led the industry
on the introduction of bodyworn testing of all handsets sold in Europe. This
involves testing exposure to RF (Radio Frequency) fields not only to the head
but to other parts of the body.
Please also refer to note 31 to the Consolidated Financial Statements for further
information.
Responsible network deployment
Vodafone's mobile services rely on a network of base stations that transmit and receive calls. The Group recognises that network roll out can cause concern to communities,
usually about the visual impact of base stations or health issues concerning RF fields. This year, Vodafone was found in breach of planning regulations relating to 46 mast sitings. Fines levied by regulatory bodies or Courts in relation to offences
under environmental law or regulations were approximately £63,000. To address
these challenges, Vodafone began implementing a Group policy and guidelines on
responsible network deployment. These set out consistent standards for all mobile
operating companies on legal compliance, environmental impact, RF emissions,
site planning and selection, communication and consultation, and landlord relationships.
Energy use and efficiency
A
consequence of the Group's business growth is increasing energy demand to run the network. This is Vodafone's most significant environmental impact and limiting the
Group's contribution to climate change is a priority. In partnership with
equipment manufacturers, Vodafone is improving the energy efficiency of the network
so that data and voice can be transmitted with greater efficiency. In the 2006
financial year:
•
Energy use increased 23% to 3,198 GWh, equating to 1.31 million tonnes of carbon dioxide.
•
There has been a 22% increase from the previous year in the amount of renewable energy used by the Group and this has resulted in 12% of total grid energy being
sourced from renewables. Vodafone has also trialled onsite renewable energy technologies including the use of hydrogen fuel cells, wind generators and solar power.
Reuse and recycling
Mobile phones, accessories and the networks on which they operate require upgrading, replacement and decommissioning. Whilst Vodafone does not manufacture mobile phones or equipment,
the Group is committed to working closely with suppliers to improve the sustainability of mobiles and network equipment. Waste management involves minimisation, reuse and recycling before waste disposal. The following were achieved during the
year:
•
1.37 million phones have been collected for reuse and recycling and collection programmes are in place in 15 mobile operating companies.
•
Initiatives have been launched to raise awareness and encourage recycling. These include offering incentives for customers and promoting handset recycling with
corporate customers and employees.
•
97% of network equipment waste was sent for reuse or recycling.
Environmental
        Performance Indicators
2006
(1)
2005
(1)
Number
          of mobile operating subsidiaries undertaking independent RF field monitoring
15
14
Total
        energy use (GWh) (direct and indirect)
3,198
2,600
Total
        carbon dioxide emissions (millions of tonnes)
1.31
1.2
%
        of energy sourced from renewables
12
11
Number
        of phones collected for reuse and
recycling
        (million)
1.37
1.27
%
          network equipment waste sent for reuse or recycling
97
96
Note:
(1)
These performance indicators were calculated using actual or estimated data collected by the Group's mobile operating companies. The data is sourced from
invoices, purchasing requisitions, direct data measurement and estimations where required. The carbon dioxide emissions figure is calculated using the Kwh/CO2 conversion factor for the electricity provided by the national grid and for other energy
sources in each operating company. The data collection and reporting process is within the assurance undertaken by Deloitte & Touche LLP on the Company's CR Report. The data for the 2005 financial year excludes newly acquired operations in
the Czech Republic and Romania and operations in Sweden that were sold during 2006. It includes the Group's joint venture in Italy and the discontinued operation in Japan.
60
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
Board's Report to Shareholders on Directors' Remuneration
Dear Shareholder
Since
the introduction
of the current Executive Remuneration Policy in 2002 (the "Policy"),
the Remuneration Committee has conducted annual reviews to ensure that the Policy
continues to serve the Company and shareholders. Following my appointment as
Chairman of the Committee, we have undertaken a review again this year.
As a result of this
year's review, the Remuneration Committee has concluded that the existing
Policy remains appropriate but wishes to make three minor changes. These are
as
follows:
•
the deferred bonus scheme will be extended to members of the Executive Committee based outside of the UK, and the mechanics amended in light of recent US tax
legislation;
•
we have considered the weighting of performance shares and options within our long term incentives, and will place a greater weighting on performance shares for
2006 awards, thus increasing the emphasis on total shareholder return performance; and
•
dividends will be accrued on performance shares awarded from 2006 and transferred as shares on the vesting of awards, to increase the alignment of executive and
shareholder interests.
The key principles of the Policy, which are being maintained, are:
•
the expected value of total remuneration will be benchmarked against the relevant market;
•
a high proportion of total remuneration will be delivered through performance related payments;
•
performance measures will be balanced between absolute financial measures and sector comparative measures to achieve maximum alignment between executive and
shareholder objectives;
•
the majority of performance related remuneration will be provided in the form of equity; and
•
share ownership requirements will be applied to executive directors.
The Committee continues to monitor how well incentive awards made in previous
years align with the Company's performance. The Policy continues to work
well and forecast rewards are commensurate with actual performance. I am confident
that the Policy continues to align executives' interests with the interests
of shareholders, whilst enabling the Company to engage a high calibre team to
successfully lead the Company. I hope that we receive your support at the AGM
on 25 July 2006.
Luc Vandevelde
Chairman
of the Remuneration Committee
30 May 2006
Remuneration Committee
The
Remuneration Committee is comprised to exercise independent judgement and consists
only
  of independent non-executive directors. Luc Vandevelde (Chairman), Sir John
  Bond, Dr
Michael Boskin and Professor Jürgen Schrempp continue as members. Philip
Yea joined the Committee on 1 January 2006. The Chief Executive and Chairman
are invited to attend meetings of the Remuneration Committee, other than when
their own
remuneration is being discussed.
The Remuneration Committee met on five occasions during the year. The Committee
appointed and received advice from Towers Perrin (market data and advice on market
practice and governance) and Kepler Associates (performance analysis and advice
on performance measures and market practice) and received advice from the Group
Human Resources Director and the Group Compensation and Benefits Director. The
advisers also provided advice to the Company on general human resource and compensation
related matters.
Remuneration Policy
The Policy was approved by shareholders in July 2002. The Policy is set out below:
The
          overriding objective of the Policy on incentives is to ensure that
          Vodafone is able to attract, retain and motivate executives of the
          highest calibre essential to the successful leadership and effective
          management of a global company at the leading edge of the telecommunications
          industry. To achieve this objective, Vodafone, from the context of
          its UK domicile, takes into account both the UK regulatory framework,
          including best practice in corporate governance, shareholder views,
          political opinion and the appropriate geographic and nationality basis
          for determining competitive remuneration, recognising that this may
          be subject to change over time as the business evolves.
The
          total remuneration will be benchmarked against the relevant market.
          Vodafone is one of the largest companies in Europe and is a global
          business; Vodafone's policy will be to provide executive directors
          with remuneration generally at levels that are competitive with the
          largest companies in Europe. A high proportion of the total remuneration
          will be awarded through performance related remuneration, with phased
          delivery over the short, medium and long term. For executive directors,
          approximately 80% of the total expected remuneration will be performance
          related. Performance measures will be balanced between absolute financial
          measures and sector comparative measures to achieve maximum alignment
          between executive and shareholder objectives.
All
          medium and long term incentives are delivered in the form of Vodafone
          shares and options. Executive directors are required to comply with
        share ownership guidelines.
The structure of remuneration for executive directors under the Policy (excluding
pensions) is illustrated below:
The Policy's key objective is to ensure that there is a strong linkage between
pay and performance. This is achieved by approximately 80% of the total package
(excluding pensions) being delivered through performance-linked short, medium
and long term incentive plans. Therefore, the only guaranteed payment to executive
directors is their
base salary.
The Remuneration Committee selects performance measures for incentive plans that
provide the greatest degree
of alignment with the Company's strategic goals and that are clear and transparent
to both directors and shareholders. The performance measures adopted incentivise
both operational performance and share price growth.
Vodafone
            Group Plc
Annual Report 2006
61
Back to Contents
Board's
  Report to Shareholders on Directors' Remuneration
continued
Each element of the reward package focuses on supporting different Company objectives, which are illustrated below:
Purpose
Performance
        Measure(s)
Base
        salary
•
Reflects
        competitive market
•
Individual
        contribution
level,
        role and individual
achievement
Annual
•
Motivates
        achievement of
•
Adjusted
        operating profit
deferred
annual
        business KPIs
•
Free
        cash flow
share
        bonus
•
Provides
        incentive to co-invest
•
Total
        service revenue
•
Motivates
        achievement of
•
Customer
        satisfaction
medium
        term KPIs
•
Adjusted
        EPS growth on share
•
Aligns
        with shareholders
deferral
Share
        options
•
Incentivise
        earnings growth
•
Adjusted
        EPS growth
and
        share price growth
•
Aligns
        with shareholders
Performance
•
Incentivise
        share price and
•
Relative
        Total Shareholder
shares
dividend
        growth
Return
        ("TSR")
•
Aligns
        with shareholders
The principles of the Policy are cascaded, where appropriate, to executives below Board level as set out below:
Cascade
      of policy to Executive Committee
Base
      salary
Set
        against national market
Annual
      Deferred
Target
      bonus level competitive in local market,
Share
      Bonus
payout
      conditional on business performance
relevant
      to individual executive
Opportunity
      to defer bonus to be extended to
Executive
      Committee members based overseas
in
      2006
Long
      Term Incentive
Annual
      awards of performance shares and share
options
      with performance conditions
Report
    on Executive Directors' Remuneration for the 2006
Financial Year and Subsequent Periods
Total
    remuneration levels
In accordance
    with the Policy, the Company benchmarks total remuneration levels against
    other large European domiciled companies, using externally provided pay data.
    Total remuneration for these purposes means the sum of base salary and short,
    medium and long term incentives. The European focus was selected because Europe
    continues to be Vodafone's major market and the Company is one of the
    top ten companies in Europe by market capitalisation. The competitive data
    is used as one input to determine the remuneration level of the Chief Executive
    and Board. The Committee also takes into account other factors, including
    personal and Company performance, in determining the target remuneration level.
Components
    of executive directors' remuneration
Executive
    directors receive base salary, short and medium term incentive (annual deferred
    share bonus), long term incentives (performance shares and share options)
    and pension benefits. Vesting of all incentives is dependent on the achievement
    of performance targets that are set by the Remuneration Committee prior to
    the awards being granted.
Base
    salary
Salaries
    are reviewed annually and adjustments may be made to reflect competitive national
    pay levels, the prevailing level of salary reviews of employees within the
    Group, changes in responsibilities and Group and individual performance. External
    remuneration consultants provide data about market salary levels and advise
    the Committee accordingly. Pension entitlements are based only on base salary.
Incentive
    awards
Short
    and medium term incentive: annual deferred share bonus
The
    purpose of the annual deferred share bonus is to focus and motivate executive
    directors to achieve annual business KPIs that will further the Company's
    medium term objectives. Awards made in July 2003 under the Vodafone Group
    Short Term Incentive Plan ("STIP") vested in July 2005. Details
    of STIP awards are given in the table on page 66.
The Company
  has reviewed the current STIP in light of changes to US tax legislation and
  will make future awards under the Vodafone Global Incentive Plan Rules approved
  by shareholders in 2005. This will enable the plan to be operated for members
  of the Executive Committee based overseas. Whilst the mechanics of the plan
  will change, the quantum of awards will remain the same.
The STIP
  comprises two elements: a base award and an enhancement award. Release of both
  elements after three years is dependent upon the continued employment of the
  participant.
Base
    award
The
    base award is earned by achievement of one year KPI linked performance targets
    and is delivered in the form of shares. The target base award level for the
    2006 financial year was 100% of salary with a maximum of 200% of salary available
    for exceptional performance. From 2006, the base award will be deferred into
    shares, net of tax.
The Remuneration
  Committee reviews and sets the base award performance targets on an annual basis,
  taking into account business strategy. The performance measures for the 2006
  financial year relate to adjusted operating profit, total service revenue, free
  cash flow and customer delight. Each element is weighted according to the responsibilities
  of the relevant director. For the Chief Executive, in the 2006 financial year,
  the adjusted operating profit target was 30% of the total, total service revenue
  35%, free cash flow 20% and customer satisfaction 15%, and the payout achieved
  was 118.7%. The targets are not disclosed, as they are commercially sensitive.
  For the 2007 financial year, no changes will be made to the performance measures
  or weightings. More information on Company performance against KPIs in the 2006
  financial year can be found in "Key Performance Indicators" on page
  29.
The Group
  may, at its discretion, pay a cash sum of up to the value of the base award
  in the event that an executive director declines the share award. In these circumstances,
  the executive director will not be eligible to receive the enhancement award
  or any cash alternative.
Enhancement
    award
An
    enhancement award of 50% of the number of shares comprised in the pre-tax
    base award is earned by achievement of a subsequent two year EPS performance
    target following the initial twelve month period. For awards made in the 2006
    financial year, which will vest in July 2007, the performance measure related
    to growth in adjusted EPS. Three quarters of the enhancement award will vest
    for achievement of EPS growth of 11% rising to full vesting for achievement
    of EPS growth of 16% over the two year performance period.
Long term
    incentives
Awards of
    performance shares and share options were made to executive directors following
    the 2005 AGM on 26 July 2005. The awards for the 2006 financial year will
    be also be made following the AGM.
Awards in
  the 2006 financial year were made under the Vodafone Group Plc 1999 Long Term
  Stock Incentive Plan. Awards of performance shares and options in the 2007 financial
  year will be made under the Vodafone Global Incentive Plan.
Awards are
  delivered in the form of ordinary shares of the Company. All awards are made
  under plans that incorporate dilution limits as set out in the Guidelines for
  Share Incentive Schemes published by the Association of British Insurers. The
  current estimated dilution from subsisting awards, including executive and all-employee
  share awards, is approximately 2.6% of the Company's share capital at 31
  March 2006 (2.4% as at 31 March 2005).
Performance
    shares
Performance
    shares are awarded annually to executive directors. Vesting of the performance
    shares depends upon the Company's relative TSR performance. TSR measures
    the change in value of a share and reinvested dividends over the period of
    measurement. The Company's TSR performance is compared to that of other
    companies in the FTSE Global Telecommunications index as at the date of grant,
    over a three-year performance period.
In the 2006
  financial year, the Chief Executive received an award of performance shares
  with a face value of two times base salary; the Deputy Chief Executive and other
  executive directors one and a half times their base salary.
Performance
  shares will vest only if the Company ranks in the top half of the ranking table;
  maximum vesting will only occur if the Company is in the top 20%. Vesting is
  also conditional on underlying improvement in the performance of the Company.
  Awards will vest to the extent that the performance condition has been satisfied
  at the end of the three-year performance period. To the extent that the performance
  target is not met, the awards will be forfeited. The following chart shows the
  basis on which the performance shares will vest:
62
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
For awards
  made in the 2007 financial year, dividend equivalents will be awarded at vesting.
  Initial award levels will be adjusted to take into account the increased expected
  value of awards and the proportion of dividend equivalents transferred will
  reflect TSR performance achievement.
Previously
  disclosed performance share awards granted in the 2003 financial year vested
  in the 2006 financial year. Details are given in the table on page 67.
Share
    options
Share
    options are granted annually to executive directors. The exercise of share
    options is subject to the achievement of a performance condition set prior
    to grant. The Remuneration Committee determined that the most appropriate
    performance measure for awards relating to the 2006 financial year was absolute
    growth in adjusted EPS. One quarter of the option award will vest for achievement
    of EPS growth of 8% p.a. rising to full vesting for achievement of EPS growth
    of 16% p.a. over the performance period. In setting this target the Remuneration
    Committee has taken the internal long range plan and market expectations into
    account. The Remuneration Committee has decided that for the 2007 financial
    year grants, the performance range will be 5% – 10% p.a. The following
    chart illustrates the basis on which share options granted in the 2006 financial
    year will vest:
Options
  have a ten year term and will vest after three years, subject to performance
  achievement. To the extent that the performance target is not met, the options
  will lapse. Re-testing of performance is not permitted.
The price
  at which shares can be acquired on option exercise will be no lower than the
  market value of the shares on the day prior to the date of grant of the options.
  Therefore, scheme participants only benefit if the share price increases and
  vesting conditions are achieved.
In July
  2005, the Chief Executive received an award of options with a face value of
  six and a half times base salary; the Deputy Chief Executive and the other executive
  directors five times their base salary.
Illustration
To
    help shareholders understand the value of the package provided to the Chief
    Executive, the following illustration demonstrates that in order to gain value
    from the incentive plans, considerable shareholder value must be created.
For example,
  if the Company's share price increases by over 50% from 127.0 pence to
  approximately 190.0 pence, the Company's value increases by £42 billion,
  and there was a 50% vesting of long term incentives, the Chief Executive would
  have a pre-tax gain of approximately £4 million, representing less than
  a hundredth of 1% of the total increase in shareholder value.
Measurement
    of performance under IFRS
From
    1 April 2005, the Company has prepared its financial statements under IFRS.
    The Remuneration Committee has reviewed the impact of the introduction of
    IFRS for incentive scheme purposes, to ensure that EPS performance achievement
    is measured on a consistent basis and that the introduction of the new standard
    does not advantage or disadvantage participants. For the schemes affected,
    EPS under IFRS is adjusted to reflect UK GAAP measurement so that performance
    may be measured on a consistent basis. In each case, an independent auditor
    is requested to review and verify the achievement level.
Share
    ownership guidelines
Executive
    directors participating in long term incentive plans must comply with the
    Company's share ownership guidelines. These guidelines, which were first
    introduced in 2000, require the Chief Executive to have a shareholding in
    the Company of four times base salary and other executive directors to have
    a shareholding of three times base salary.
It is intended
  that these ownership levels will be attained within five years from the director
  first becoming subject to the guidelines and be achieved through the retention
  of shares awarded under incentive plans.
Pensions
The
    Chief Executive, Arun Sarin, is provided with a defined contribution pension
    arrangement to which the Company contributes 30% of his base salary. The contribution
    is currently held in a notional fund outside the Company pension scheme.
During the
  2006 financial year, Sir Julian Horn-Smith, Peter Bamford, and Andy Halford,
  being UK based directors, were contributing members of the Vodafone Group Pension
  Scheme, which is a UK defined benefit scheme approved by the Inland Revenue.
  The scheme provides a benefit of two-thirds of pensionable salary after a minimum
  of 20 years' service. The normal retirement age is 60, but directors may
  retire from age 55 with a pension proportionately reduced to account for their
  shorter service but with no actuarial reduction. Where directors' benefit
  levels are restricted by Inland Revenue limits, the Company made contributions
  to the defined contribution Vodafone Group Funded Unapproved Retirement Benefit
  Scheme ("FURBS").
Sir Julian
  Horn-Smith has elected to receive his pension from 6 April 2006, prior to his
  actual retirement from the Company, in accordance with the new UK pension rules
  effective from April 2006. Sir Julian is planning to retire at the end of the
  2006 AGM and the Committee authorised a pension allowance of 30% of base salary
  for four months until he steps down from the Board.
Thomas Geitner
  is entitled to a defined benefit pension of 40% of salary from a normal retirement
  age of 60. On early retirement, the pension may be reduced if he has accrued
  less than 10 years of Board service.
All the
  plans referred to above provide benefits in the event of death in service.
Further
    details of the pension benefits earned by the directors in the year ended
    31 March 2006 can be found on page 66. Liabilities in respect of the pension
    schemes in which the executive directors participate are funded to the extent
    described in note 25 to the Consolidated Financial Statements, "Post
    employment benefits".
A-Day
    proposals
As
    a result of the new UK legislation affecting the taxation of pensions, the
    Company has reviewed the pension arrangements it provides to UK based executives.
    From April 2006, executives participating in UK pension arrangements may choose
    to continue membership of the Vodafone Group Pension Scheme or opt out and
    instead receive a non-pensionable cash allowance. Participation in an Inland
    Revenue approved defined contribution plan or a non-pensionable cash allowance
    will be provided in place of the current FURBS arrangement.
All-employee
    share incentive schemes
Global
    All Employee Share Plan
As
    in the 2005 financial year, the Remuneration Committee has approved that an
    award of shares based on the achievement of performance conditions be made
    to all employees in the Vodafone Group. The 2006 award will be made on 3 July
    2006. These awards have a dilutive effect of approximately 0.03%.
Sharesave
The
    Vodafone Group 1998 Sharesave Scheme is an Inland Revenue approved scheme
    open to all UK permanent employees.
Vodafone
      Group Plc
Annual Report 2006
63
Back to Contents
Board's
  Report to Shareholders on Directors' Remuneration
continued
The maximum
  that can be saved each month is £250 and savings plus interest may be
  used to acquire shares by exercising the related option. The options have been
  granted at up to a 20% discount to market value. UK based executive directors
  are eligible to participate in the scheme and details of their participation
  are given in the table on page 68.
Share
  Incentive Plan
The
  Vodafone Share Incentive Plan ("SIP") is an Inland Revenue approved
  plan open to all UK permanent employees. Eligible employees may contribute up
  to £125 each month and the trustee of the plan uses the money to buy shares
  on their behalf. An equivalent number of shares is purchased with contributions
  from the employing company. UK based executive directors are eligible to participate
  in the SIP and details of their share interests under these plans are given
  in the table on page 69.
Non-executive
  directors' remuneration
The remuneration
  of non-executive directors is periodically reviewed by the Board, excluding
  the non-executive directors. Basic fee levels were increased in April 2005 to
  reflect directors' considerably increased workload and the increased complexity
  of managing an international group. The fees payable are as follows:
Fees
      payable from 1 April 2005
£'000
Chairman
510
Deputy
      Chairman and Senior Independent Director
130
Basic
      Non-Executive Director fee
95
Chairmanship
      of Audit Committee
20
Chairmanship
      of Remuneration Committee
15
Chairmanship
      of Nominations and Governance Committee
10
In addition,
  an allowance of £6,000 is payable each time a non-Europe based non-executive
  director is required to travel to attend Board and Committee meetings, to reflect
  the additional time commitment involved.
Details
  of each non-executive director's remuneration are included in the table
  on page 65.
Non-executive
  directors do not participate in any incentive or benefit plans. The Company
  does not provide any contribution to their pension arrangements. The Chairman
  is entitled to the provision of a fully expensed car or car allowance.
Service
  contracts and appointments of directors
Executive
  directors
The
  Remuneration Committee has determined that, after an initial term that may be
  of up to two years' duration, executive directors' contracts should
  thereafter have rolling terms and be terminable on no more than one year's
  notice. All current executive directors' contracts have an indefinite term
  (to normal retirement date) and one year notice periods. No payments should
  normally be payable on termination other than the salary due for the notice
  period and such entitlements under incentive plans and benefits that are consistent
  with the terms of such plans.
All the
  UK based executive directors have, whilst in service, entitlement under a long
  term disability plan from which two-thirds of base salary, up to a maximum benefit
  determined by the insurer, would be provided until normal retirement date. In
  the event of disability, Thomas Geitner would receive his normal retirement
  pension based on his accrued service.
Sir
  Julian Horn-Smith
Sir
  Julian Horn-Smith, the Company's Deputy Chief Executive, will retire from
  the Company following the AGM on 25 July 2006. Sir Julian will be entitled to
  subsisting awards, pro-rated for both time and performance, in accordance with
  the standard rules of each incentive plan in which he participates. Sir Julian
  will receive a pension in line with the standard rules of the plan in which
  he participates, described in more detail in "Pensions" on page 63.
  The Remuneration Committee agreed that he would be offered the opportunity to
  purchase his company car on leaving the Company. No severance payment will be
  payable to him.
Peter
  Bamford
Peter
  Bamford left the Company on 1 April 2006 and will receive salary and compensation
  for loss of office in accordance with his legal entitlement. The total payment
  is in the order of £1.25 million, including pension contribution. He will
  receive his annual bonus for the 2006 financial year and the Remuneration Committee
  has exercised discretion to allow him access to long term incentive awards,
  pro-rated for time and performance.
Fees
  retained for non-executive directorships in other companies
Some
  executive directors hold positions in other companies as non-executive directors.
  The fees received in respect of the 2006 financial year and retained by directors
  were as follows:
Fees
        retained by the
individual
        in the
Company
        in which non-
2006
        financial year
executive
        directorship is held
£'000
(1)
Arun
      Sarin
Bank
        of England
5.0
Thomas
      Geitner
Singulus
      Technologies AG
61.9
Sir
      Julian Horn-Smith
(2)
Smiths
      Group plc
50.0
LloydsTSB
      Group plc
74.0
Sage
      Group plc
3.4
Ken
      Hydon
(3)
Reckitt
      Benckiser plc
20.0
Tesco
      PLC
18.5
Notes:
(1)
Fees were retained in accordance with Company policy.
(2)
An option over 400,000 shares was granted to Sir Julian in November 2005 by China Mobile (Hong Kong) Limited for his duties as non-executive director, which are
held for the benefit of the Company and will lapse on his retirement.
(3)
Fees retained in the period to 26 July 2005.
Chairman
  and non-executive directors
In
  December 2005, the Company announced that Lord MacLaurin, the Company's
  Chairman, will retire from the Company following the AGM on 25 July 2006. Lord
  MacLaurin will receive fees in accordance with his service contract until the
  end of the 2006 calendar year. The Company has entered into an agreement with
  Lord MacLaurin that he will provide advisory services to the Company for a period
  of three years following his retirement. During this period he will receive
  an annual fee of £125,000, which he has advised the Company he intends
  to donate to charity.
In December
  2005, Sir John Bond accepted the invitation of the Board to be appointed as
  Chairman of the Company following the 2006 AGM. As Chairman, he will receive
  a fee of £475,000 per annum. The appointment is indefinite and may be
  terminated by either party on one year's notice.
Non-executive
  directors, including the Deputy Chairman, are engaged on letters of appointment
  that set out their duties and responsibilities. The appointment of non-executive
  directors may be terminated without compensation.
The terms
  and conditions of appointment of non-executive directors are available for inspection
  by any person at the Company's registered office during normal business
  hours and at the AGM (for 15 minutes prior to the meeting and during the meeting).
Philip Yea,
  Anne Lauvergeon and Tony Watson were appointed to the Board as non-executive
  directors with effect from 1 September 2005, 1 November 2005 and 1 May 2006
  respectively, and hold office on the same terms as other non-executive directors.
TSR performance
The following
  chart shows the performance of the Company relative to the FTSE100 index and
  the FTSE Global Telecommunications index, which are the most relevant indices
  for the Company.
Graph provided
by Towers Perrin and calculated according to a methodology that is compliant
with the requirements of Schedule 7A of the Companies Act. Data Sources: FTSE
and  Datastream
Note: Performance
    of the Company shown by the graph is not indicative of vesting levels under
    the Company's various incentive plans.
64
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
Audited
  Information
Remuneration for the year ended 31 March 2006
The
  remuneration of the directors serving during the year ended 31 March 2006 was
  as follows:
Salary/fees
Incentive
      schemes
Benefits
Total
2006
2005
2006
(1)
2005
2006
(2)
2005
2006
2005
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Chairman
Lord
      MacLaurin
520
485
–
–
57
32
577
517
Deputy
      Chairman
Paul
      Hazen
(3)
173
130
–
–
–
–
173
130
Chief
      Executive
Arun
      Sarin
1,254
1,175
1,424
1,148
54
183
2,732
2,506
Executive
      directors
Peter
      Bamford
804
771
908
663
48
37
1,760
1,471
Thomas
      Geitner
734
679
851
665
148
37
1,733
1,381
Andy
      Halford
342
–
396
–
16
–
754
–
Sir
      Julian Horn-Smith
1,022
970
1,169
966
48
34
2,239
1,970
Ken
      Hydon
253
779
264
776
91
30
608
1,585
Non-executive
      directors
Sir
      John Bond
95
21
–
–
–
–
95
21
Dr
      Michael Boskin
(3)
144
85
–
–
–
–
144
85
Lord
      Broers
95
85
–
–
–
–
95
85
John
      Buchanan
95
85
–
–
–
–
95
85
Penny
      Hughes
100
95
–
–
–
–
100
95
Anne
      Lauvergeon
40
–
–
–
–
–
40
–
Sir
      David Scholey
32
85
–
–
–
–
32
85
Professor
      Jürgen Schrempp
95
85
–
–
–
–
95
85
Luc
      Vandevelde
105
85
–
–
–
–
105
85
Philip
      Yea
55
–
–
–
–
–
55
–
Former
      directors
(4)
–
191
–
–
1,283
229
1,283
420
5,958
5,806
5,012
4,218
1,745
582
12,715
10,606
Notes:
(1)
These
      figures are the cash equivalent value of the base share awards under the
      Vodafone Group Short Term Incentive Plan applicable to the year ended 31
      March 2006. These awards are in relation to the performance achievements
      against targets in adjusted operating profit, total service revenue, free
      cash flow and customer delight for the 2006 financial year.
(2)
Benefits
      principally comprise cars and private health and disability insurance. Thomas
      Geitner relocated from Germany to the UK during the 2006 financial year.
      The benefits figure disclosed includes relocation expenses and a monthly
      allowance to reflect the higher cost of living in the UK.
(3)
Fees
      include allowances paid in respect of a non-executive director based outside
      of Europe to reflect the additional time commitment involved when required
      to travel to attend Board and Committee meetings.
(4)
Under
      the terms of an agreement, Sam Ginn, a former director of the Company, provides
      consultancy services to the Group and was entitled to certain benefits.
      The estimated value of the benefits received by him in the year to 31 March
      2006 was £29,852. During the year, the agreement was terminated by
      mutual agreement. Mr Ginn received a payment of $2.23m (£1.25m) as
      compensation for benefits for the outstanding term.
The aggregate
  compensation paid by the Company to its collective senior management
(1)
for
  services for the year ended 31 March 2006, is set out below. The aggregate number
  of senior management as at 31 March 2006 was ten, the same number as at 31 March
  2005.
2006
2005
£'000
£'000
Salaries
      and fees
4,555
2,972
Incentive
      schemes
(2)
5,155
2,875
Benefits
3,125
1,066
12,835
6,913
Notes:
(1)
Aggregate
      compensation for senior management is in respect of those individuals who
      were members of the Executive Committee during the year ended 31 March 2006,
      other than executive directors and reflects compensation paid from date
      of appointment to the Executive Committee, to 31 March 2006 or date of leaving,
      where applicable.
(2)
Comprises
      the incentive scheme information for senior management on an equivalent
      basis to that disclosed for directors in the table at the top of this page.
      Details of share incentives awarded to directors and senior management are
      included in footnotes to "Short term incentives" and "Long
      term incentives" on pages 66 and 67.
Vodafone
      Group Plc
Annual Report 2006
65
Back to Contents
Board's
  Report to Shareholders on Directors' Remuneration
continued
Pensions
Pension
  benefits earned by the directors serving during the year ended 31 March 2006
  were:
Employer
Transfer
      value
allocation/
Change
      in transfer
of
      change in
contribution
      to
Total
      accrued
Change
      in
value
      over year
Change
      in accrued
accrued
      benefit
to
      defined
benefit
      at
accrued
      benefit
Transfer
      value at
Transfer
      value at
less
      member
benefit
      in excess
net
      of member
contribution
31
      March 2006
(1)
over
      the year
(1)
31
      March 2005
(1)
31
      March 2006
(2)
contributions
of
      inflation
contributions
plans
Name
      of Director
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Arun
      Sarin
–
–
–
–
–
–
–
360.0
Peter
      Bamford
30.8
3.5
348.8
529.9
177.4
2.8
44.2
202.4
Thomas
      Geitner
115.8
23.1
1,163.2
1,971.4
808.2
20.6
350.7
–
Andy
      Halford
13.3
2.3
110.1
182.8
69.0
2.0
23.7
73.6
Sir
      Julian Horn-Smith
605.2
57.1
9,090.3
13,231.0
4,106.2
42.3
890.0
–
Ken
      Hydon
(3)
516.6
10.4
10,241.1
12,637.2
2,396.1
–
–
79.2
Notes:
(1)
The
      accrued pension benefits earned by the directors are those which would be
      paid annually on retirement, based on service to the end of the year, at
      the normal retirement age. The increase in accrued pension excludes any
      increase for inflation.
(2)
The
      transfer values have been calculated on the basis of actuarial advice in
      accordance with the Faculty and Institute of Actuaries' Guidance Note
      GN11. No director elected to pay additional voluntary contributions. The
      transfer values disclosed above do not represent a sum paid or payable to
      the individual director. Instead they represent a potential liability of
      the pension scheme.
(3)
Ken
      Hydon reached 60 years of age on 3 November 2004 and retired from the Company
      following the AGM on 26 July 2005. In accordance with the standard rules
      of the scheme, he received an immediate pension based on his accrued benefit
      without actuarial reduction or any enhancement. From 1 December 2004, Ken
      Hydon accrued a cash allowance equivalent to 30% of his base salary, which
      ceased on leaving the Company.
In respect of senior management, the Group has made aggregate contributions of £829,582 into pension schemes. The Company's proposals in light of the changes in pension
legislation are detailed under "Pensions" on page 63.
Directors'
  interests in the shares of the Company
Short
  term incentives
Conditional
  awards of ordinary shares made to executive directors under the STIP, and dividends
  on those shares paid under the terms of the Company's scrip dividend scheme
  and dividend reinvestment plan, are shown below. STIP shares which vested and
  were sold or transferred during the year ended 31 March 2006 are also shown
  below.
Shares
      conditionally
Shares
      conditionally
awarded
      during the
awarded
      during the year
Total
      interest
year
      as base award
as
      enhancement shares
Shares
      sold or transferred
in STIP
      at
in
      respect of STIP awards
in
      respect of STIP awards
during
      the year in respect
1 April
      2005
for
      the 2005 financial year
for
      the 2005 financial year
of
      the 2003 financial year
(1)
Total
      interest in STIP as at 31 March 2006
Value
      at
Value
      at
In respect
      of
Number
Number
      of
Total
      number
date
      of award
(2)(3)
date
      of award
((3)
In respect
      of
enhancement
of base
enhancement
Total
      value
(4)
of shares
Number
£'000
Number
£'000
base
      awards
shares
award
      shares
shares
£'000
Arun
      Sarin
1,520,600
840,498
1,148
420,249
574
–
–
1,854,231
927,116
3,352
Peter
      Bamford
1,958,447
–
–
–
–
704,311
352,155
601,320
300,661
1,087
Thomas
      Geitner
329,205
285,453
390
142,726
195
219,470
109,735
285,453
142,726
516
Andy
      Halford
565,211
–
–
–
–
181,941
90,971
194,866
97,433
352
Sir
      Julian Horn-Smith
1,324,070
–
–
–
–
882,713
441,357
–
–
–
Ken
      Hydon
1,081,324
–
–
–
–
720,883
360,441
–
–
–
Notes:
(1)
Shares
      in respect of the STIP awards for the 2003 financial year were transferred
      on 1 July 2005.
(2)
Previously
      disclosed within directors' emoluments for the year ended 31 March
      2005.
(3)
Value
      at date of award is based on the price of the Company's ordinary shares
      on 1 July 2005 of 136.25p.
(4)
The
      value at 31 March 2006 is calculated using the closing middle market price
      of the Company's ordinary shares at 31 March 2006 of 120.5p.
The aggregate number of shares conditionally awarded during the year as base award and enhancement shares to the Company's senior management, other than executive directors, is
514,603. For a description of the performance and vesting conditions, see "Short and medium term incentive: annual deferred share bonus" on page 62.
66
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Governance
Long
  term incentives
Performance
  shares
Conditional
  awards of ordinary shares made to executive directors under the Vodafone Group
  Long Term Incentive Plan and Vodafone Group Plc 1999 Long Term Stock Incentive
  Plan, and dividends on those shares paid under the terms of the Company's
  scrip dividend scheme and dividend reinvestment plan, are shown below. Long
  Term Incentive shares that vested and were sold or transferred during the year
  ended 31 March 2006 are also shown below:
Shares
      sold or
Shares
Shares
      forfeited in
transferred
      in
Total
      interest in
added
      during the
respect
      of awards
respect
      of awards
Long
      Term Incentives
2006
      financial year
for
      the 2003,
for
      the 2003,
at 1
      April 2005 or
Shares
      conditionally awarded
through
      dividend
2004
      and 2005
2004
      and 2005
Total
      interest in long term
date
      of appointment
(1)
during
      the 2006 financial year
reinvestment
financial
      years
financial
      years
incentives
      at 31 March 2006
Value
      at
date
      of award
(2)
Number
Total
      value
(4)
Number
Number
£'000
Number
Number
(3)
Number
(3)
of shares
£'000
Arun
      Sarin
3,861,669
1,717,120
2,494
–
–
–
5,578,789
6,722
Peter
      Bamford
2,934,630
876,532
1,273
15,609
592,145
492,367
2,742,259
3,304
Thomas
      Geitner
2,429,377
811,127
1,178
11,949
453,321
376,934
2,422,198
2,919
Andy
      Halford
514,616
539,975
784
3,110
118,013
98,126
841,562
1,014
Sir
      Julian Horn-Smith
3,717,872
1,117,080
1,623
20,387
773,413
643,092
3,438,834
4,144
Ken
      Hydon
2,948,
      684
–
–
15,609
592,145
788,719
–
–
Notes:
(1)
Restricted
      share awards under the Vodafone Group Long Term Incentive Plan and Vodafone
      Group Plc 1999 Long Term Stock Incentive Plan.
(2)
The
      value of awards under the Vodafone Group Plc 1999 Long Term Incentive Plan
      is based on the price of the Company's ordinary shares on 26 July 2005
      of 145.25p.
(3)
Shares
      in respect of awards for the 2003 financial year were sold or transferred
      on 1 July 2005 and 19 August 2005. The closing middle market price of the
      Company's ordinary shares on 1 July 2005, the date of vesting, was
      136.25p.
(4)
The
      value at 31 March 2006 is calculated using the closing middle market price
      of the Company's ordinary shares at 31 March 2006 of 120.5p.
(5)
All
      employees, including Executive Directors with the exception of those retiring
      in the 2006 financial year, received an award of 320 shares on 1 July 2005,
      under the Global All Employee Share Plan. The awards vest after two years
      and are not subject to performance conditions.
The aggregate
  number of shares conditionally awarded during the year to the Company's
  senior management is 3,192,815 shares. For a description of the performance
  and vesting conditions see "Long term incentives" on pages 62 to 63.
  In some cases local performance conditions attach to the awards.
Share
  options
The
  following information summarises the directors' options under the Vodafone
  Group Plc Savings Related Share Option Scheme, the Vodafone Group 1998 Sharesave
  Scheme, the Vodafone Group Plc Executive Share Option Scheme and the Vodafone
  Group 1998 Company Share Option Scheme, all of which are HM Revenue and Customs
  approved schemes. The table also summarises the directors' options under
  the Vodafone Group Plc Share Option Scheme, the Vodafone Group 1998 Executive
  Share Option Scheme, the AirTouch Communications, Inc. 1993 Long Term Stock
  Incentive Plan and the Vodafone Group Plc 1999 Long Term Stock Incentive Plan,
  which are not HM Revenue and Customs approved. No other directors have options
  under any of these schemes. Only under the Vodafone Group 1998 Sharesave Scheme
  may shares be offered at a discount in future grants of options. For a description
  of the performance and vesting conditions see "Long term incentives"
  on pages 62 to 63.
Options
      held at
1 April
      2005
Options
      granted
Options
      exercised
Options
      lapsed
Weighted
      average
or date
      of
during
      the 2006
during
      the 2006
during
      the 2006
Options
      held at
exercise
      price at
Earliest
      date
appointment
(1)
financial
      year
financial
      year
financial
      year
31 March
      2006
31 March
      2006
from
      which
Latest
Number
Number
Number
Number
Number
Pence
exercisable
expiry
      date
Arun
      Sarin
(2)(3)
20,704,987
5,711,292
–
–
26,416,279
152.5
Jun
      2000
Jul
      2015
Peter
      Bamford
19,073,022
2,915,424
4,350,652
2,053,776
15,584,018
148.5
Jul
      2002
Mar
      2007
Thomas
      Geitner
17,334,854
2,697,882
–
1,635,776
18,396,960
140.5
Jul
      2003
Jul
      2015
Andy
      Halford
921,485
1,796,003
13,395
–
2,704,093
147.6
Jul
      2002
Jul
      2015
Sir
      Julian Horn-Smith
23,332,869
3,715,505
–
1,847,776
25,200,598
134.9
Jul
      2002
Jul
      2015
Ken
      Hydon
18,717,166
–
8,338,371
7,280,782
3,098,013
213.9
Jul
      2002
Jul
      2006
100,084,383
16,836,106
12,702,418
12,818,110
91,399,961
Notes:
(1)
The
      weighted average exercise price of options over shares in the Company granted
      during the year and listed above is 145.25 pence. The earliest date from
      which they are exercisable is July 2008 and the latest expiry date is 25
      July 2015. For a description of the performance and vesting conditions see
      "Long term incentives" on pages 62 to 63.
(2)
Some
      of the options held by Arun Sarin are held in the form of ADSs, each representing
      ten ordinary shares of the Company, which are traded on the New York Stock
      Exchange. The number of ADSs over which Arun Sarin holds options is 625,000.
(3)
The
      terms of the share options granted over 6,250,000 shares in 1999 to Arun
      Sarin allow exercise until the earlier of the date on which he ceases to
      be a director of the Company and the seventh anniversary of the respective
      dates of grant.
(4)
In
      accordance with the terms of the plan rules, options granted to Ken Hydon
      became exercisable on retirement, being pro-rated for both time and performance.
The aggregate number of options granted during the year to the Company's senior management, other than executive directors, is 10,454,900. The weighted average exercise price of
the options granted to senior management during the year is 145.24 pence. The earliest date from which they are exercisable is July 2008 and the latest expiry date is 25 July 2015.
Vodafone
      Group Plc
Annual Report 2006
67
Back to Contents
Board's Report to Shareholders on Directors' Remuneration
continued
Further details of options outstanding at 31 March 2006 are as follows:
Exercisable:
    Market price
Exercisable:
    Option price
greater
    than option price
(1)
greater
    than market price
(1)
Not
    yet exercisable
Weighted average
Latest
Weighted average
Latest
Weighted average
Earliest date from
Options held
exercise price
expiry date
Options held
exercise price
expiry date
Options held
exercise price
which exercisable
Number
Pence
Number
Pence
Number
Pence
Arun Sarin
(2)
–
–
–
6,250,000
236.3
Jul-06
20,166,279
126.5
Jul-06
Peter Bamford
–
–
–
3,307,713
207.2
Mar-07
12,276,305
132.7
Jul-06
Thomas Geitner
3,507,178
97.0
Aug-12
3,259,679
209.3
Jul-11
11,630,103
134.4
Jul-06
Andy Halford
94,444
90.0
Jul-12
344,800
214.6
Jul-11
2,264,849
139.8
Jul-06
Sir Julian Horn-Smith
5,753,505
97.0
Aug-12
3,701,990
201.7
Jul-11
15,745,103
133.1
Jul-06
Ken Hydon
–
–
–
3,098,013
213.9
Jul-06
–
–
–
9,355,127
19,962,195
62,082,639
Notes:
(1)
Market price is the closing middle market price of the Company's ordinary shares at 31 March 2006 of 120.5p.
(2)
Some of Arun Sarin's options are in respect of American Depositary Shares, each representing ten ordinary shares in the Company, which are traded on the New
York Stock Exchange. The number and option price have been converted into the equivalent amounts for the Company's ordinary shares.
The Company's register of directors' interests (which is open to inspection at the Company's registered office) contains full details of directors' shareholdings
and options to subscribe. These options by exercise price were:
Options held at
1 April 2005
Options granted
Options exercised
Options lapsed
or date of
during the 2006
during the 2006
during the 2006
Options held at
Option price
appointment
(1)
financial year
financial year
financial year
31 March 2006
Pence
Number
Number
Number
Number
Number
Vodafone Group Plc Share Option Scheme (Unapproved – 1988)
155.90
855,000
–
–
855,000
–
Vodafone Group 1998 Company Share Option Scheme (Approved)
255.00
502,500
–
–
–
502,500
Vodafone Group 1998 Executive Share Option Scheme (Unapproved)
282.30
1,131,000
–
–
–
1,131,000
Vodafone Group Plc Savings Related Share Option Scheme (1988)
70.92
63,521
–
40,185
–
23,336
Vodafone Group 1998 Sharesave Scheme
95.30
16,710
–
–
–
16,710
108.84
8,705
–
–
–
8,705
Vodafone Group Plc 1999 Long Term Stock Incentive Plan
90.00
94,444
–
–
–
94,444
97.00
17,935,197
–
8,674,514
–
9,260,683
119.00
20,794,632
–
1,079,081
2,246,855
17,468,696
119.25
23,119,811
–
2,908,638
831,039
19,380,134
145.25
–
16,836,106
–
–
16,836,106
151.56
2,000,400
–
–
–
2,000,400
157.50
16,943,043
–
–
2,342,112
14,600,931
236.34
(2)
6,250,000
–
–
–
6,250,000
291.50
10,369,420
–
–
6,543,104
3,826,316
100,084,383
16,836,106
12,702,418
12,818,110
91,399,961
Notes:
(1)
Includes options held by Andy Halford as at 26 July 2005 on appointment to the Board
(2)
These share options are in respect of American Depositary Shares, each representing ten ordinary shares in the Company, which are traded on the New York Stock
Exchange. The number and option price have been converted into the equivalent amounts for the Company's ordinary shares.
Details of
    the options exercised by directors of the Company in the year ended 31 March
    2006 are as follows:
Options
Market
          price
exercised
at
          date of
Gross
during
          the year
Option
          price
exercise
pre-tax
          gain
Number
Pence
Pence
£'000
Peter
        Bamford
13,395
70.9
152.0
10.9
Andy
        Halford
13,395
70.9
152.0
10.9
26,790
21.8
Note:
The
        aggregate gross pre-tax gain made on the exercise of share options in
        the 2006 financial year by the Company's above directors was £21,721
        (2005: £3,076,276). The closing middle market price of the Company's
        shares at 31 March 2006 was 120.5p, its highest closing price in the
        2006 financial year having been 155.0 pence and its lowest closing price
    having been 109.0 pence.
68
Vodafone
            Group Plc
Annual Report 2006
Back to Contents
Governance
Beneficial interests
The
directors' beneficial
interests in the ordinary shares of the Company, which includes interests in
the Vodafone Group Profit Sharing Scheme and the Vodafone Share Incentive Plan,
but which excludes interests in the Vodafone Group Share Option Schemes, the
Vodafone Group Short Term Incentive or in the Vodafone Group Long Term Incentives,
are shown below:
1 April 2005 or date
26 May 2006
31 March 2006
of appointment
Lord MacLaurin
92,495
92,495
92,495
Paul Hazen
360,900
360,900
360,900
Arun Sarin
(1)
4,932,560
4,932,560
4,832,560
Thomas Geitner
451,556
451,556
417,700
Andy Halford
(2)
108,293
107,895
91,336
Sir Julian Horn-Smith
1,829,385
1,828,987
1,818,257
Sir John Bond
134,423
134,423
34,423
Dr Michael Boskin
212,500
212,500
212,500
Lord Broers
20,483
20,483
19,819
John Buchanan
208,124
208,124
104,318
Penny Hughes
22,500
22,500
22,500
Anne Lauvergeon
(3)
31,000
31,000
–
Professor
    Jürgen Schrempp
10,000
10,000
10,000
Luc Vandevelde
20,000
20,000
20,000
Philip Yea
(3)
70,000
70,000
–
Notes:
(1)
Arun Sarin also has a non-beneficial interest as the trustee of two family trusts, each holding 5,720 shares.
(2)
Andy Halford was appointed to the Board on 26 July 2005.
(3)
Non-executive directors appointed to the Board as follows: Anne Lauvergeon: 1 November 2005, Philip Yea: 1 September 2005.
Changes to the interests of the directors of the Company in the ordinary shares of the Company during the period from 1 April 2006 to 26 May 2006 relate to shares acquired either
through Vodafone Group Personal Equity Plans or the Vodafone Share Incentive Plan. As at 31 March 2006, and during the period from 1 April 2006 to 26 May 2006, no director had any interest in the shares of any subsidiary company.
Other than those individuals included in the table above who were Board members at 31 March 2006, members of the Group's Executive Committee, as at 31 March 2006, had an
aggregate beneficial interest in 2,078,326 ordinary shares of the Company. At 26 May 2006, Executive Committee members at that date had an aggregate beneficial interest in 2,079,522 ordinary shares of the Company, none of whom had an individual
beneficial interest amounting to greater than 1% of the Company's ordinary shares.
Interests in share options of the Company at 26 May 2006
At
26 May 2006, there had been no change to the directors' interests in share
options from 31 March 2006.
Other than those individuals included in the table above, at 26 May 2006, members of the Group's Executive Committee at that date held options for 34,714,916 ordinary shares at
prices ranging from 48.3 pence to 293.7 pence per ordinary share, with a weighted average exercise price of 141.60 pence per ordinary share exercisable at dates ranging from July 1999 to July 2015, and options for 172,669 ADSs at prices ranging from
$13.65 to $45.3359 per ADS, with a weighted average exercise price of $26.6056 per ADS, exercisable at dates ranging from July 2001 to July 2013.
Lord MacLaurin, Paul Hazen, Sir John Bond, Dr Michael Boskin, Lord Broers, John Buchanan, Penny Hughes, Anne Lauvergeon, Professor Jürgen Schrempp, Luc Vandevelde and Philip Yea
held no options at 26 May 2006.
Directors' interests in contracts
None of the current directors had a material interest in any contract of significance to which the Company or any of its subsidiary undertakings was a party during the financial
year.
Luc Vandevelde
On behalf of the Board
Vodafone
            Group Plc
Annual Report 2006
69
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Directors' Statement of Responsibility
United Kingdom company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and
  the Group as at the end of the financial year and of the profit or loss of the Group for that period. In preparing those financial statements, the directors are required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and estimates that are reasonable and prudent;
•
state whether the Consolidated Financial Statements have been prepared in accordance with IFRS as adopted for use in the EU;
•
for the Company Financial Statements, state whether applicable UK accounting standards have been followed; and
•
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company and the Group will continue in
business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and the Group and to
enable them to ensure that the financial statements comply with the Companies Act 1985 and Article 4 of the IAS Regulation. They are also responsible for the system of internal control, for safeguarding the assets of the Company and the Group and,
hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of Information to Auditors
Having
made the requisite enquiries, so far as the directors are aware, there is no
relevant audit information (as defined by Section 234ZA of the Companies Act
1985) of which the
Company's auditors are unaware, and the directors have taken all the steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the Company's
auditors are aware of that
information.
Going Concern
After
reviewing the Group's and Company's budget for the next financial year,
and other longer term plans, the directors are satisfied that, at the time of
approving the financial statements, it is appropriate to adopt the going concern
basis in preparing the financial statements.
By Order of the Board
Stephen Scott
Secretary
30 May 2006
70
Vodafone
            Group Plc
Annual Report 2006
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Financials
Financials
Contents
Page
Consolidated
    Financial Statements
72
– Consolidated
       Income Statement for the years ended 31 March
72
– Consolidated
       Statement of Recognised Income and Expense for the year ended 31 March
72
– Consolidated
       Balance Sheet at 31 March
73
– Consolidated
       Cash Flow Statement for the years ended 31 March
74
Notes
    to the Consolidated Financial Statements
75
1.
Basis of preparation
75
2.
Significant accounting policies
75
3.
Segmental analysis
79
4.
Operating (loss)/profit
83
5.
Investment income and financing costs
84
6.
Taxation
85
7.
Equity dividends
87
8.
(Loss)/earnings per share
88
9.
Intangible assets
89
10.
Impairment
91
11.
Property, plant and equipment
93
12.
Principal subsidiary undertakings
94
13.
Investments in joint ventures
95
14.
Investments in associated undertakings
96
15.
Other investments
96
16.
Inventory
97
17.
Trade and other receivables
97
18.
Cash and cash equivalents
98
19.
Called up share capital
98
20.
Share-based payments
99
21.
Transactions with equity shareholders
102
22.
Movements in accumulated other recognised income and expense
102
23.
Movements in retained losses
102
24.
Borrowings
102
25.
Post employment benefits
106
26.
Provisions for liabilities and charges
109
27.
Trade and other payables
110
28.
Acquisitions
111
29.
Discontinued operations and disposals
114
30.
Commitments
116
31.
Contingent liabilities
117
32.
Reconciliation of net cash flows to operating activities
118
33.
Directors and key management compensation
118
34.
Employees
119
35.
Subsequent events
119
36.
Related party transactions
120
37.
Financial information of joint ventures and associated undertakings
120
38.
US GAAP information
122
39.
New accounting standards
125
40.
Transition to IFRS on first-time adoption
126
Report
         of Independent Registered Public Accounting Firm to the Members of Vodafone
    Group Plc
131
Company
    Financial Statements of Vodafone Group Plc at 31 March
132
Notes
    to the Company Financial Statements
133
1.
Basis of preparation
133
2.
Significant accounting policies
133
3.
Fixed assets
135
4.
Debtors
135
5.
Investments
135
6.
Creditors
136
7.
Share capital
136
8.
Reserves
    and reconciliation of movements in equity shareholders' funds
137
9.
Equity dividends
137
10.
Contingent liabilities
138
Independent Auditor's
    Report to the Members of Vodafone Group Plc
139
Vodafone
      Group Plc
Annual Report 2006
71
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Consolidated Income Statement for the years ended 31 March
2006
2006
2005
Note
$m
£m
£m
Revenue
3
51,048
29,350
26,678
Cost of sales
(29,689
)
(17,070
)
(15,800
)
Gross profit
21,359
12,280
10,878
Selling and distribution expenses
(3,263
)
(1,876
)
(1,649
)
Administrative expenses
(5,941
)
(3,416
)
(2,856
)
Share of result in associated undertakings
14
4,223
2,428
1,980
Impairment losses
10
(40,900
)
(23,515
)
(475
)
Other income and expense
26
15
–
Operating (loss)/profit
3,4
(24,496
)
(14,084
)
7,878
Non-operating income and expense
(3
)
(2
)
(7
)
Investment income
5
614
353
294
Financing costs
5
(1,948
)
(1,120
)
(880
)
(Loss)/profit before taxation
(25,833
)
(14,853
)
7,285
Tax on (loss)/profit
6
(4,140
)
(2,380
)
(1,869
)
(Loss)/profit for the financial year from continuing operations
(29,973
)
(17,233
)
5,416
(Loss)/profit for the financial year from discontinued operations
29
(7,980
)
(4,588
)
1,102
(Loss)/profit for the financial year
(37,953
)
(21,821
)
6,518
Attributable to:
Equity shareholders
(38,118
)
(21,916
)
6,410
Minority interests
165
95
108
(37,953
)
(21,821
)
6,518
(Loss)/earnings per share
From continuing operations:
Basic
8
(48.11
)¢
(27.66
)p
8.12
p
Diluted
8
(48.11
)¢
(27.66
)p
8.09
p
From continuing and discontinued operations:
Basic
8
(60.89
)¢
(35.01
)p
9.68
p
Diluted
8
(60.89
)¢
(35.01
)p
9.65
p
Consolidated
Statement of Recognised Income and Expense
for the years ended 31 March
2006
2006
2005
Note
$m
£m
£m
Gains on revaluation of available-for-sale investments, net of tax
1,226
705
106
Exchange differences on translation of foreign operations
2,599
1,494
1,488
Actuarial losses on defined benefit pension schemes, net of tax
(52
)
(30
)
(79
)
Asset revaluation surplus
28
195
112
–
Transfer to the income statement on disposal of foreign operations
63
36
–
Net income recognised directly in equity
4,031
2,317
1,515
(Loss)/profit for the financial year
(37,953
)
(21,821
)
6,518
Total recognised income and expense relating to the year
(33,922
)
(19,504
)
8,033
Attributable to:
Equity shareholders
(34,101
)
(19,607
)
7,958
Minority interests
179
103
75
(33,922
)
(19,504
)
8,033
The accompanying notes are an integral part of these Consolidated Financial Statements.
The unaudited US dollar amounts are prepared on the basis set out in note 1.
72
Vodafone
    Group Plc
Annual Report 2006
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Financials
Consolidated Balance Sheet at 31 March
2006
2006
2005
Note
$m
£m
£m
Non-current assets
Goodwill
9
91,497
52,606
80,999
Other intangible assets
9
28,719
16,512
16,149
Property, plant and equipment
11
23,759
13,660
17,442
Investments in associated undertakings
14
40,346
23,197
20,234
Other investments
15
3,686
2,119
1,181
Deferred tax assets
6
244
140
1,184
Post employment benefits
25
33
19
12
Trade and other receivables
17
628
361
585
188,912
108,614
137,786
Current assets
Inventory
16
517
297
440
Taxation recoverable
14
8
38
Trade and other receivables
17
7,718
4,438
5,164
Cash and cash equivalents
18
4,851
2,789
3,769
13,100
7,532
9,411
Assets included in disposal group held for sale
29
18,423
10,592
–
Total assets
220,435
126,738
147,197
Equity
Called up share capital
19
7,244
4,165
4,286
Share premium account
21
91,216
52,444
52,284
Own shares held
21
(14,259)
(8,198)
(5,121
)
Additional paid-in capital
21
174,194
100,152
100,081
Capital redemption reserve
21
223
128
–
Accumulated other recognised income and expense
22
7,114
4,090
1,781
Retained losses
23
(117,152)
(67,356)
(39,511
)
Total equity shareholders' funds
148,580
85,425
113,800
Minority interests
(197)
(113)
(152
)
Total equity
148,383
85,312
113,648
Non-current liabilities
Long-term borrowings
24
29,133
16,750
13,190
Deferred tax liabilities
6
9,862
5,670
4,849
Post employment benefits
25
209
120
136
Provisions for liabilities and charges
26
461
265
319
Trade and other payables
27
984
566
438
40,649
23,371
18,932
Current liabilities
Short-term borrowings:
Third parties
24
5,340
3,070
861
Related parties
24
657
378
1,142
Current taxation liabilities
7,736
4,448
4,353
Trade and other payables
27
13,005
7,477
8,033
Provisions for liabilities and charges
26
242
139
228
26,980
15,512
14,617
Liabilities included in disposal group held for sale
29
4,423
2,543
–
Total equity and liabilities
220,435
126,738
147,197
The Consolidated Financial Statements were approved by the Board of directors on 30 May 2006 and were signed on its behalf by:
Arun
          Sarin
Chief
    Executive
Andy
          Halford
Chief
    Financial Officer
The accompanying
    notes are an integral part of these Consolidated Financial Statements. The
unaudited US dollar amounts are prepared on the basis set out in note 1.
Vodafone
      Group Plc
Annual Report 2006
73
Back to Contents
Consolidated Cash Flow Statement for the years ended 31 March
2006
2006
2005
Note
$m
£m
£m
Net
      cash flows from operating activities
29,
      32
20,595
11,841
10,979
Cash
      flows from investing activities
Purchase
      of interests in subsidiary undertakings and joint ventures, net of cash
      acquired
(7,280
)
(4,186
)
(2,461
)
Disposal
      of interests in subsidiary undertakings, net of cash disposed
1,042
599
444
Purchase
      of intangible assets
(1,200
)
(690
)
(699
)
Purchase
      of property, plant and equipment
(7,794
)
(4,481
)
(4,279
)
Disposal
      of property, plant and equipment
45
26
68
Purchase
      of investments
(99
)
(57
)
(19
)
Disposal
      of investments
2
1
22
Loans
      to businesses sold or acquired businesses held for sale
–
–
110
Dividends
      received from associated undertakings
1,452
835
1,896
Dividends
      received from investments
71
41
19
Interest
      received
555
319
339
Net
      cash flows from investing activities
29
(13,206
)
(7,593
)
(4,560
)
Cash
      flows from financing activities
Issue
      of ordinary share capital and reissue of treasury shares
619
356
115
Net
      movement in short-term borrowings
1,231
708
–
Proceeds
      from the issue of long-term borrowings
9,142
5,256
–
Repayment
      of borrowings
(2,385
)
(1,371
)
(1,824
)
Loans
      repaid to associated undertakings
(82
)
(47
)
(2
)
Purchase
      of treasury shares
(11,230
)
(6,457
)
(4,053
)
Equity
      dividends paid
(4,781
)
(2,749
)
(1,991
)
Dividends
      paid to minority shareholders in subsidiary undertakings
(89
)
(51
)
(32
)
Interest
      paid
(1,254
)
(721
)
(744
)
Net
      cash flows from financing activities
29
(8,829
)
(5,076
)
(8,531
)
Net
      decrease in cash and cash equivalents
(1,440
)
(828
)
(2,112
)
Cash
      and cash equivalents at beginning of the financial year
18
6,481
3,726
5,809
Exchange
      gains on cash and cash equivalents
59
34
29
Cash
      and cash equivalents at end of the financial year
18
5,100
2,932
3,726
The accompanying notes are an integral part of these Consolidated Financial Statements.
The unaudited US dollar amounts are prepared on the basis set out in note 1.
74
Vodafone
    Group Plc
Annual Report 2006
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Financials
Notes
  to the Consolidated Financial Statements
1.
Basis
    of preparation
The
    Consolidated Financial Statements are prepared in accordance with International
    Financial Reporting Standards ("IFRS") (including International
    Accounting Standards ("IAS") and interpretations issued by the International
    Accounting Standards Board ("IASB") and its committees, and as interpreted
    by any regulatory bodies applicable to the Group as adopted for use in the
    European Union ("EU"), the Companies Act 1985 and Article 4 of the
    IAS Regulations. The Consolidated Financial Statements have been prepared
    in accordance with IFRS, which differs in certain material respects from US
    generally accepted accounting principles ("US GAAP") – see
    note 38.
The preparation
    of financial statements in conformity with IFRS requires management to make
    estimates and assumptions that affect the reported amounts of assets and liabilities
    and disclosure of contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenue and expenses during the reporting
    period. For a discussion on the Group's critical accounting estimates
    see "Performance – Critical Accounting Estimates" elsewhere
    in this Annual Report. Actual results could differ from those estimates. The
    estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
    to accounting estimates are recognised in the period in which the estimate
    is revised if the revision affects only that period or in the period of the
    revision and future periods if the revision affects both current and future
    periods. Certain amounts in relation to the previous financial year have been
    reclassified to conform presentation with the requirements of IFRS.
Amounts in the Consolidated Financial Statements are stated in pounds sterling
(£), the currency of the country in which the Company is incorporated.
The translation into US dollars of the Consolidated Financial Statements as of,
and for the financial year ended, 31 March 2006, is for convenience only and
has been made at the Noon Buying Rate for cable transfers as announced by the
Federal Reserve Bank of New York for customs purposes on 31 March 2006. This
rate was $1.7393: £1. This translation should not be construed as a representation
that the sterling amounts actually represented have been, or could be, converted
into dollars at this or any other
rate.
2.
Significant
    accounting policies
The
    Group's significant accounting policies are described below.
Accounting convention
The Consolidated Financial Statements are prepared on a historical cost basis except for certain financial and equity instruments that have been measured at fair value.
Basis of consolidation
The Consolidated Financial Statements incorporate the financial statements of the Company and entities controlled, both unilaterally and jointly, by the Company.
Accounting for subsidiaries
A subsidiary
is an entity controlled by the Company. Control is achieved where the Company
has the power to govern the financial and operating policies of an entity so
as to obtain
benefits from its activities.
The
  results of subsidiaries acquired or disposed of during the year are included
  in the income statement from the effective date of acquisition or up to the effective
  date of  disposal, as appropriate. Where necessary, adjustments are made to the
  financial statements of subsidiaries to bring their accounting policies into
  line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified
separately from
the Group's equity therein. Minority interests consist of the amount of
those
interests at the date of the original business combination and the minority's
share of changes in equity since the date of the combination. Losses applicable
to the minority in excess of the minority's share of changes in equity are
allocated against the interests of the Group except to the extent that the minority
has a binding obligation and is able to make an additional investment to cover
the losses.
Business combinations
The acquisition
  of subsidiaries is accounted for using the purchase method. The cost of the
  acquisition is measured at the aggregate of the fair values, at the date of
  exchange, of assets given, liabilities incurred or assumed, and equity instruments
  issued by the Group in exchange for control of the acquiree, plus any costs
  directly attributable to the business combination. The acquiree's identifiable
  assets and liabilities are recognised at their fair values at the acquisition
  date.
Goodwill
    arising on acquisition is recognised as an asset and initially measured at
    cost, being the excess of the cost of the business combination over the Group's
    interest in the net fair value of the identifiable assets, liabilities and
    contingent liabilities recognised.
The interest of minority shareholders in the acquiree is initially measured at
the minority's proportion of the net fair value of the assets, liabilities
and contingent
liabilities recognised.
Previously held identifiable assets, liabilities and contingent liabilities of
the acquired entity are revalued to their fair value at the date of acquisition,
being the date at which the Group achieves control of the acquiree. The movement
in fair value is taken to the asset revaluation surplus.
Interests in joint ventures
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial
and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
The Group reports its interests in jointly controlled entities using proportionate
consolidation.
The Group's share of the assets, liabilities, income, expenses and cash
flows of jointly controlled entities are combined with the equivalent items in
the results on a line-by-line basis.
Any goodwill arising
on the acquisition of the Group's interest in a jointly controlled entity
is accounted for in accordance with the Group's accounting policy for goodwill
arising on the acquisition of a subsidiary.
Investments in associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in the
Consolidated Financial Statements using the equity method of accounting. Under
the equity method, investments in associates are carried in the consolidated
balance sheet at cost as adjusted
for post-acquisition changes in the Group's share of the net assets of the
associate, less any impairment in the value of the investment. Losses of an associate
in excess of the Group's interest in that associate are not recognised.
Additional losses are provided for, and a liability is recognised, only to the
extent that the Group has incurred legal or constructive obligations or made
payments on behalf of the associate.
Any excess of the
cost of acquisition over the Group's share of the net fair value of the
identifiable assets, liabilities and contingent liabilities of the associate
recognised at the date of acquisition is recognised as goodwill. The goodwill
is included within the carrying amount of the investment.
The licences of the
Group's associated undertaking in the US, Verizon Wireless, are indefinite
lived assets as they are subject to perfunctory renewal. Accordingly they are
not subject to amortisation but are tested annually for impairment, or when indicators
exist that the carrying value is not recoverable.
Intangible assets
Goodwill
Goodwill
arising on the acquisition of an entity represents the excess of the cost of
acquisition
over the Group's interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities of the entity recognised at the date of
acquisition. Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is held in
the currency of the acquired entity and revalued to the closing rate at each
balance
sheet date.
Goodwill is not subject to amortisation but is tested for impairment.
Negative goodwill arising on an acquisition is recognised directly in the income
statement.
On disposal of a subsidiary or a jointly controlled entity, the attributable
amount of goodwill is included in the determination of the profit or loss recognised
in the income
statement on disposal.
Goodwill arising before the date of transition to IFRS, on 1 April 2004, has
been retained at the previous UK GAAP amounts subject to being tested for impairment
at that date. Goodwill written off to reserves under UK GAAP prior to 1998 has
not been reinstated and is not included in determining any subsequent profit
or loss on disposal.
Vodafone
            Group Plc
Annual Report 2006
75
Back to Contents
Notes to the Consolidated Financial Statements
continued
2.
Significant
    accounting policies
continued
Licence
    and spectrum fees
Licence
    and spectrum fees are stated at cost less accumulated amortisation. The amortisation
    periods range from 3 to 25 years and are determined primarily by reference
    to the unexpired licence period, the conditions for licence renewal and whether
    licences are dependent on specific technologies. Amortisation is charged to
    the income statement on a straight-line basis over the estimated useful lives
    from the commencement of service of the network.
Computer software
Computer
software licences are capitalised on the basis of the costs incurred to acquire
and bring into use the specific software. These costs are amortised over their
estimated
useful lives, being 3 to 5 years.
Costs that are directly associated with the production of identifiable and unique
software products controlled by the Group, and that are expected to generate
economic benefits exceeding costs beyond one year, are recognised as intangible
assets. Direct costs include software development employee costs and directly
attributable overheads.
Software integral to a related item of hardware equipment is accounted for as
property, plant and equipment.
Costs associated with maintaining computer software programmes are recognised
as an expense as incurred.
Research and development expenditure
Expenditure
on research activities is recognised as an expense in the period in which it
is incurred.
An internally-generated
intangible asset arising from the Group's development activity is recognised
only if all of the following conditions are met:
•
an asset is created that can be separately identified;
•
it is probable that the asset created will generate future economic benefits; and
•
the development cost of the asset can be measured reliably.
Internally-generated intangible assets are amortised on a straight-line basis over their estimated useful lives. Where no internally-generated intangible asset can be recognised,
development expenditure is charged to the income statement in the period in which it is incurred.
Other intangible assets
Other
intangible assets with finite lives are stated at cost less accumulated amortisation
and impairment losses. Amortisation is charged to the income statement on a straight-line
basis over the estimated useful lives of intangible assets from the date they
are available for use. The estimated useful lives are as follows:
Brands
1
      - 10 years
Customer
      bases
3
      - 8 years
Property, plant and equipment
Land and buildings held for use are stated in the balance sheet at their cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Assets in the course of construction are carried at cost, less any recognised
impairment loss. Depreciation of these assets commences when the assets are ready
for their intended
use.
Equipment, fixtures and fittings are stated at cost less accumulated depreciation
and any accumulated impairment losses.
The cost of property, plant and equipment includes directly attributable incremental
costs incurred in their acquisition and installation.
Depreciation is charged so as to write off the cost or valuation of assets, other
than land and properties under construction, using the straight-line method,
over their estimated
useful lives as follows:
Freehold buildings
25 - 50 years
Leasehold premises
the term of the lease
Equipment, fixtures and fittings
3 - 10 years
Network infrastructure
3 - 25 years
Depreciation
is not provided on freehold land.
Assets
    held under finance leases are depreciated over their expected useful lives
    on the same basis as owned assets or, where shorter, the term of the relevant
    lease.
The gain or loss arising on the disposal or retirement of an item of property,
plant and equipment is determined as the difference between the sales proceeds
and the carrying amount
of the asset and is recognised in the income statement.
Impairment of assets
Indefinite lived assets
Goodwill
and other assets that have an indefinite useful life are not subject to amortisation
but are tested for impairment annually or whenever there is an indication that
the asset
may be impaired.
For the purpose of impairment testing, assets are grouped at the lowest levels
for which there are separately identifiable cash flows, known as cash-generating
units. If the recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro-rata on the basis of the carrying amount of each asset
in the unit. An impairment loss recognised for goodwill is not reversed in a
subsequent period.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
Property, plant and equipment and finite lived intangible assets
At
each balance sheet date, the Group reviews the carrying amounts of its property,
plant and equipment and finite lived intangible assets to determine whether there
is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or cash-generating
unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(or cash-generating unit) is increased to the revised estimate of its recoverable
amount, not to exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in the
income statement.
Disposal groups held for sale
Disposal groups held for sale are stated at the lower of carrying value and fair value less costs to sell.
Revenue
Group revenue
  comprises revenue of the Company and its subsidiary undertakings plus the Group's
  share of the revenue of its joint ventures and excludes sales taxes and
discounts.
Revenue from mobile telecommunications comprises amounts charged to customers
in respect of monthly access charges, airtime usage, messaging, the provision
of other mobile telecommunications services, including data services and information
provision, fees for connecting users of other fixed line and mobile networks
to the Group's network, revenue from the sale of equipment, including handsets
and revenue arising from Partner
Market Agreements.
Access charges and airtime used by contract customers are invoiced and recorded
as part of a periodic billing cycle and recognised as revenue over the related
access period, with unbilled revenue resulting from services already provided
from the billing cycle date to the end of each period accrued and unearned revenue
from services provided in periods after each accounting period deferred. Revenue
from the sale of prepaid credit is deferred until such time as the customer uses
the airtime, or the credit
expires.
Other revenue from mobile telecommunications primarily comprises equipment sales,
which are recognised upon delivery to customers, and customer connection revenue.
Customer connection revenue is recognised together with the related equipment
revenue to the extent that the aggregate equipment and connection revenue does
not exceed the fair value of the equipment delivered to the customer. Any customer
connection revenue not recognised together with related equipment revenue is
deferred and recognised over the period in which services are expected to be
provided to the customer.
76
Vodafone
    Group Plc
Annual Report 2006
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Financials
Revenue from data services and information provision is recognised when the Group has performed the related service and, depending on the nature of the service, is recognised either
at the gross amount billed to the customer or the amount receivable by the Group as commission for facilitating the service.
Incentives are provided to customers in various forms and are usually offered on signing a new contract or as part of a promotional offering.
Where one-off incentives
are provided on connection of a new customer or the upgrade of an existing customer,
revenue representing the fair value of the incentive, relative to other deliverables
provided to the customer as part of the same arrangement, is deferred and recognised
in line with the Group's performance of its obligations relating to the
incentive.
For equipment sales made to intermediaries, revenue is recognised if the significant risks associated with the equipment are transferred to the intermediary and the intermediary has
no general right of return. If the significant risks are not transferred, revenue recognition is deferred until sale of the handset to an end customer by the intermediary or the expiry of the right of return.
Intermediaries are incentivised by the Group to connect new customers and upgrade existing customers. Where such incentives are separable from the initial sale of equipment to an
intermediary, the incentive is accounted for as an expense upon connection, or upgrade, of the customer.
Revenue from other
businesses primarily comprises amounts charged to customers of the Group's fixed line businesses, mainly in respect of access charges and line usage, invoiced
and recorded as part of a periodic billing cycle
.
Inventory
Inventory is stated at the lower of cost and net realisable value. Cost is determined on the basis of weighted average costs and comprises direct materials and, where applicable,
direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are
classified as operating leases.
Assets held under finance leases are recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease
payments as determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the income statement.
Rentals payable under operating leases are charged to the income statement on a straight line basis over the term of the relevant lease. Benefits received and receivable as an
incentive to enter into an operating lease are also spread on a straight line basis over the lease term.
Foreign currencies
In preparing
  the financial statements of the individual entities, transactions in currencies
  other than the entity's functional currency are recorded at the rates
  of exchange prevailing on the dates of the transactions. At each balance sheet
  date, monetary items denominated in foreign currencies are retranslated at
  the rates prevailing on the balance sheet date. Non-monetary items carried
  at fair value that are
denominated in foreign currencies are retranslated at the rate prevailing on
  the date when fair value was determined. Non-monetary items that are measured
  in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income statement for the period. Exchange differences
arising on the retranslation of non-monetary items carried at fair value are included in the income statement for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are
recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.
For the purpose of presenting Consolidated Financial Statements, the assets and liabilities of entities with a functional currency other than sterling are expressed in sterling using
exchange rates prevailing on the balance sheet date. Income and expense items and cash flows are translated at the average exchange rates for the period and exchange differences arising are recognised directly in equity. Such translation
differences are recognised in the income statement in the period in which a foreign operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated accordingly.
In respect of all foreign operations, any exchange differences that have arisen before
1 April 2004, the date of transition to IFRS, are deemed to be nil and will be excluded from the determination of any subsequent profit or loss on disposal.
Borrowing costs
All borrowing costs are recognised in the income statement in the period in which they are incurred.
Post employment benefits
For defined
  benefit retirement plans, the difference between the fair value of the plan
  assets and the present value of the plan liabilities is recognised as an asset
  or liability on the balance sheet. The Group has early adopted the amendment
  to IAS 19, "Employee Benefits", issued by the IASB on 16 December
  2004 and applied it from 1 April 2004. Accordingly, actuarial gains and losses
  are taken to the statement of recognised income and expense. For this purpose,
  actuarial gains and losses comprise both the effects of changes in actuarial
  assumptions and experience adjustments arising because of differences between
  the previous actuarial assumptions and what
has actually occurred.
Other movements in the net surplus or deficit are recognised in the income statement, including the current service cost, any past service cost and the effect of any curtailment or
settlements. The interest cost less the expected return on assets is also charged to the income statement. The amount charged to the income statement in respect of these plans is included within operating costs or in the Group's share of the results
of equity accounted operations as appropriate.
The values attributed to plan liabilities are assessed in accordance with the advice of independent qualified actuaries.
The Group's contributions to defined contribution pension plans are charged to the income statement as they fall due.
Cumulative actuarial gains and losses as at 1 April 2004, the date of transition to IFRS, have been recognised in the balance sheet.
Taxation
Income tax expense represents the sum of the current tax payable and deferred tax.
Current tax payable
or recoverable is based on taxable profit for the year. Taxable profit differs
from profit as reported in the income statement because some items of income
or expense are taxable or deductible in different years or may never be taxable
or deductible. The Group's liability for current tax is calculated using
UK and foreign tax rates and laws that have been enacted or substantively enacted
by the
balance sheet date.
Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. It is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the
Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised, based on tax rates that have been enacted or
substantively enacted by the balance sheet date.
Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they either relate to income
taxes
Vodafone
            Group Plc
Annual Report 2006
77
Back to Contents
Notes to the Consolidated Financial Statements
continued
2.
Significant accounting policies
continued
levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle the current tax assets and liabilities on a net
basis.
Tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the tax is also recognised directly in
equity.
Financial instruments
Financial
  assets and financial liabilities, in respect of financial instruments, are
  recognised on the Group's balance sheet when the Group becomes a party
  to the contractual
provisions of the instrument.
The Group has applied
the requirements of IFRS to financial instruments for all periods presented and
has not taken advantage of any exemptions available to first time adopters of
IFRS in this respect. The Group has early adopted IFRS 7, "Financial Instruments: Disclosures", amendments to IAS 39, "Financial Instruments: Recognition and Measurement" and IFRS 4, "Insurance Contracts", regarding
"Financial Guarantee Contracts" and amendments to IAS 39 regarding "The Fair Value Option" and "Cash Flow Hedge Accounting of Forecast Intragroup Transactions" and
applied them from 1 April 2004.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Estimated irrecoverable
amounts are based on the ageing of the receivable balances and historical experience. Individual trade receivables are written off when management deems them not to be collectible.
Investments
Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the
timeframe established by the market concerned, and are initially measured at cost, including transaction costs.
Investments are classified as either held for trading or available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading
purposes, gains and losses arising from changes in fair value are included in net profit or loss for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the
security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity, determined using the weighted average costs method, is included in the net profit or loss for the period.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
Financial liabilities and equity instruments
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of a
financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities and includes no obligation to deliver cash or other financial
assets. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
Capital market and bank borrowings
Interest bearing loans and overdrafts are initially measured at fair value (which is equal to cost at inception), and are subsequently measured at amortised cost, using the effective
interest rate method, except where they are identified as a hedged item in a fair value hedge. Any difference between the proceeds net of transaction costs and the settlement or redemption of borrowings is recognised over the term of the
borrowing.
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
Derivative financial instruments and hedge accounting
The
Group's activities
expose it to the financial risks of changes in foreign exchange rates and interest
rates.
The use of financial
derivatives is governed by the Group's policies approved by the board of directors, which provide written principles on the use of financial derivatives
consistent with the Group's risk management strategy. Changes in values
of all derivatives of a financing nature are included within investment income
and financing costs in the income statement. The Group does not use derivative
financial
instruments for speculative purposes.
Derivative financial instruments are initially measured at fair value on the contract date, and are subsequently re-measured to fair value at each reporting date. The Group designates
certain derivatives as either:
•
hedges
       of the change of fair value of recognised assets and liabilities ("fair value hedges");
    or
•
hedges of net investments in foreign operations.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting.
Fair value hedges
The
Group's policy
is to use derivative instruments (primarily interest rate swaps) to convert a
proportion of its fixed rate debt to floating rates in order to hedge the interest
rate risk arising, principally, from capital market borrowings. The Group designates
these as fair value hedges of interest rate risk with changes in fair value of
the hedging instrument recognised in the income statement for the period
together with the changes in the fair value of the hedged item due to the hedged
risk, to the extent the hedge is effective. The ineffective portion is recognised
immediately in the income statement.
Net investment hedges
Exchange
differences arising from the translation of the net investment in foreign operations
are
recognised directly in equity. Gains and losses on those hedging instruments
designated as hedges of the net investments in foreign operations are recognised
in equity to the extent that the hedging relationship is effective. These amounts
are included in exchange differences on translation of foreign operations as
stated in
the statement of recognised income and expense. Any ineffectiveness is recognised
immediately in the income statement for the period. Gains and losses accumulated
in the translation reserve are included in the income statement when the foreign
operation is disposed of. The Group has adopted the Amendments to IAS 21, "The Effect of Changes in Foreign Exchange Rates",
with effect from 1 April 2004, being the date of transition to IFRS for the Group.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation.
Provisions
are measured
at the directors' best estimate of the expenditure required to settle the
obligation at the balance sheet date, and are discounted to present value where
the effect is material.
Share-based payments
The Group
  issues equity-settled share-based payments to certain employees. Equity-settled
  share-based payments are measured at fair value (excluding the effect of non
  market-based vesting conditions) at the date of grant. The fair value determined
  at the grant date of the equity-settled share-based payments is expensed on
  a straight-line basis over the vesting period, based on the Group's estimate
  of the shares that will eventually vest and adjusted for the effect of non
  market-based vesting conditions.
Fair value is measured
using a binomial pricing model which is calibrated using a Black-Scholes framework.
The expected life used in the model has been adjusted, based on
management's best estimate, for the effects of non-transferability, exercise
restrictions and behavioural considerations.
Advertising costs
Expenditure on advertising is written off in the year in which it is incurred.
78
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    Group Plc
Annual Report 2006
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Financials
3.
Segmental analysis
The
  Group's business is principally the supply of mobile telecommunications services and products. Primary segmental information is provided on the basis of geographic regions,
  being the basis on which the Group manages its worldwide interests. Other operations primarily comprise fixed line telecommunications businesses. The segmental analysis is provided for the Group's
  continuing operations. Revenue is determined by location of assets, which is
  not materially different from revenue by location of customer. Inter-segment
  sales are charged at arms length prices.
Mobile
        telecommunications
Other
        operations
Group
Other
Common
Germany
Italy
Spain
UK
US
mobile
functions
Total
Germany
Other
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
31
        March 2006
Service
        revenue
5,394
4,170
3,615
4,568
–
8,530
26,277
1,320
19
27,616
Equipment
        and other revenue
360
193
380
480
–
720
2,133
–
–
2,133
Segment
        revenue
5,754
4,363
3,995
5,048
–
9,250
28,410
1,320
19
29,749
Subsidiaries
5,754
–
3,995
5,048
–
7,812
22,609
1,320
–
23,929
Joint
        ventures
–
4,363
–
–
–
1,470
5,833
–
19
5,852
Less:
        intra-segment revenue
–
–
–
–
–
(32
)
(32
)
–
–
(32
)
Common
        functions
145
145
145
Inter-segment
        revenue
(64
)
(44
)
(105
)
(65
)
–
(121
)
(19
)
(418
)
–
–
(418
)
Net
        revenue
5,690
4,319
3,890
4,983
–
9,129
126
28,137
1,320
19
29,476
Less:
        revenue between mobile and other operations
(91
)
–
–
–
–
(1
)
(92
)
(34
)
–
(126
)
Group
        revenue
5,599
4,319
3,890
4,983
–
9,128
126
28,045
1,286
19
29,350
Segment
        result
(17,904
)
(1,928
)
968
698
–
1,296
(16,870
)
139
4
(16,727
)
Subsidiaries
(17,904
)
–
968
698
–
933
(15,305
)
139
–
(15,166
)
Joint
        ventures
–
(1,928
)
–
–
–
363
(1,565
)
–
4
(1,561
)
Common
        functions
215
215
215
Share
        of result in associated undertakings
–
–
–
–
1,732
712
8
2,452
–
(24
)
2,428
Operating
        (loss)/profit
(17,904
)
(1,928
)
968
698
1,732
2,008
223
(14,203
)
139
(20
)
(14,084
)
Non-operating
        income and expense
(2
)
Investment
        income
353
Financing
        costs
(1,120
)
Loss
        before taxation
(14,853
)
Tax
        on loss
(2,380
)
Loss
        for the year from continuing operations
(17,233
)
Operating
        loss
(17,904
)
(1,928
)
968
698
1,732
2,008
223
(14,203
)
139
(20
)
(14,084
)
Add
        back:
Impairment
        losses
19,400
3,600
–
–
–
515
–
23,515
–
–
23,515
Non-recurring
        items related to acquisitions and disposals
–
–
–
–
–
(20
)
(12
)
(32
)
–
–
(32
)
Adjusted
        operating profit
1,496
1,672
968
698
1,732
2,503
211
9,280
139
(20
)
9,399
Non-current
        assets
(1)
24,360
19,422
12,596
8,743
–
17,200
1,907
84,228
754
64
85,046
Investment
        in associated undertakings
–
–
–
–
17,898
5,182
37
23,117
–
80
23,197
Current
        assets
(1)
669
888
443
743
–
1,555
79
4,377
266
13
4,656
Total
        segment assets
(1)
25,029
20,310
13,039
9,486
17,898
23,937
2,023
111,722
1,020
157
112,899
Unallocated
        non-current assets:
Deferred
        tax assets
140
Trade
        and other receivables
231
Unallocated
        current assets:
Cash
        and cash equivalents
2,789
Trade
        and other receivables
79
Taxation
        recoverable
8
Assets
        included in disposal group for resale
(3)
10,592
Total
        assets
126,738
Vodafone
            Group Plc
Annual Report 2006
79
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
3.   Segmental
    analysis
continued
Mobile
      telecommunications
Other
      operations
Group
Germany
Italy
Spain
UK
US
Other
Common
Total
Germany
Other
mobile
functions
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Segment
      liabilities
(1)
(753
)
(1,370
)
(914
)
(827
)
–
(2,638
)
(1,458
)
(7,960
)
(362
)
(26
)
(8,348
)
Unallocated
      liabilities:
Current
      taxation liabilities
(4,448
)
Deferred
      tax liabilities
(5,670
)
Trade
      and other payables
(219
)
Short-term
      borrowings
(3,448
)
Long-term
      borrowings
(16,750
)
Liabilities
      included in disposal group for resale
(3)
(2,543
)
Total
      liabilities
(41,426
)
Other
      segment items:
Capitalised
      fixed asset additions
(2)
592
541
502
665
–
1,456
112
3,868
129
8
4,005
Expenditure
      on other intangible assets
–
1
–
11
–
4
–
16
–
–
16
Non-cash
      items:
Depreciation
653
398
281
486
–
1,113
6
2,937
140
2
3,079
Amortisation
      of intangible assets
514
190
114
438
–
186
183
1,625
–
–
1,625
Impairment
      of goodwill
19,400
3,600
–
–
–
515
–
23,515
–
–
23,515
Bad
      debt expense
39
5
41
9
–
64
–
158
10
–
168
Share-based
      payments
6
7
5
18
–
17
54
107
2
–
109
Notes:
(1)
Excluding unallocated items.
(2)
Includes additions to property, plant and equipment and computer software, included with intangible assets.
(3)
See note 29 for information on discontinued operations.
80
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Continuing
Discontinued
Mobile
      telecommunications
Other
      operations
operations
operations
Group
Germany
Italy
Spain
UK
US
Other
Common
Total
Germany
Other
mobile
functions
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
31 March
      2005
Service
      revenue
5,320
4,091
2,963
4,498
–
6,973
23,845
1,095
–
24,940
5,610
Equipment
      and other revenue
364
182
298
567
–
664
2,075
–
–
2,075
1,786
Segment
      revenue
5,684
4,273
3,261
5,065
–
7,637
25,920
1,095
–
27,015
7,396
Subsidiaries
5,684
–
3,261
5,065
–
6,474
20,484
1,095
–
21,579
7,396
Joint
      ventures
–
4,273
–
–
–
1,184
5,457
–
–
5,457
–
Less:
      intra-segment revenue
–
–
–
–
–
(21
)
(21
)
–
–
(21
)
–
Common
      functions
123
123
123
Inter-segment
      revenue
(51
)
(36
)
(80
)
(47
)
–
(84
)
(5
)
(303
)
–
–
(303
)
(1
)
Net
      revenue
5,633
4,237
3,181
5,018
–
7,553
118
25,740
1,095
–
26,835
7,395
Less:
      revenue between mobile and
other
      operations
(110
)
–
–
–
–
–
(1
)
(111
)
(46
)
–
(157
)
–
Group
      revenue
5,523
4,237
3,181
5,018
–
7,553
117
25,629
1,049
–
26,678
7,395
Segment
      result
1,473
1,694
775
779
–
1,198
5,919
64
–
5,983
664
Subsidiaries
1,473
–
775
779
–
893
3,920
64
–
3,984
664
Joint
      ventures
–
1,694
–
–
–
305
1,999
–
–
1,999
Common
      functions
(85
)
(85
)
(85
)
Share
      of result in associated undertakings
–
–
–
–
1,354
671
2,025
–
(45
)
1,980
–
Operating
      profit/(loss)
1,473
1,694
775
779
1,354
1,869
(85
)
7,859
64
(45
)
7,878
664
Non-operating
      income and expense
(7
)
13
Investment
      income
294
9
Financing
      costs
(880
)
(20
)
Profit
      before taxation
7,285
666
Tax
      on profit
(1,869
)
436
Profit
      for the financial year
5,416
1,102
6,518
Operating
      profit/(loss)
1,473
1,694
775
779
1,354
1,869
(85
)
7,859
64
(45
)
7,878
664
Add
      back:
Impairment
      losses
–
–
–
–
–
475
–
475
–
–
475
–
Adjusted
      operating profit/(loss)
1,473
1,694
775
779
1,354
2,344
(85
)
8,334
64
(45
)
8,353
664
Non-current
      assets
(1)
44,101
22,768
12,288
9,014
–
12,443
884
101,498
752
–
102,250
13,754
116,004
Investment
      in associated undertakings
–
–
–
–
15,039
5,096
33
20,168
–
66
20,234
–
20,234
Current
      assets
(1)
811
844
356
741
–
1,301
118
4,171
221
–
4,392
1,168
5,560
Total
      segment assets
(1)
44,912
23,612
12,644
9,755
15,039
18,840
1,035
125,837
973
66
126,876
14,922
141,798
Unallocated
      non-current assets:
Deferred
      tax assets
1,184
Trade
      and other receivables
364
Unallocated
      current assets:
Cash
      and cash equivalents
3,769
Trade
      and other receivables
44
Taxation
      recoverable
38
Total
      assets
147,197
Vodafone
      Group Plc
Annual Report 2006
81
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
3.   Segmental analysis
continued
Continuing
Discontinued
Mobile
      telecommunications
Other
      operations
operations
operations
Group
Germany
Italy
Spain
UK
US
Other
Common
Total
Germany
Other
mobile
functions
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Segment
      liabilities
(1)
(848
)
(1,237
)
(735
)
(939
)
–
(2,295
)
(1,180
)
(7,234
)
(364
)
–
(7,598
)
(1,477
)
(9,075
)
Unallocated
      liabilities:
Current
      taxation liabilities
(4,353
)
Deferred
      tax liabilities
(4,849
)
Short-term
      borrowings
(2,003
)
Long-term
      borrowings
(13,190
)
Trade
      and other payables
(79
)
Total
      liabilities
(33,549
)
Other
      segment items:
Capitalised
      fixed asset additions
(2)
827
538
490
789
–
1,333
136
4,113
112
–
4,225
885
Expenditure
      on other intangible assets
–
8
–
–
–
118
–
126
–
–
126
–
Non-cash
      items:
Depreciation
640
403
253
464
–
961
11
2,732
153
–
2,885
1,114
Amortisation
      of intangible assets
514
184
101
468
–
142
7
1,416
–
–
1,416
100
Impairment
      of goodwill
–
–
–
–
–
475
–
475
–
–
475
–
Bad
      debt expense
50
13
35
36
–
39
–
173
10
–
183
39
Share-based
      payments
3
4
2
15
–
11
94
129
1
–
130
7
Notes:
(1)
Excluding unallocated items.
(2)
Includes additions to property, plant and equipment and computer software, included with intangible assets.
82
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
4.
Operating
  (loss)/profit
Operating
  (loss)/profit has been arrived at after charging/(crediting):
2006
2005
£m
£m
Net
      foreign exchange gains
–
(10
)
Depreciation
      of property, plant and equipment:
Owned
      assets
3,069
2,871
Leased
      assets
10
14
Amortisation
      of intangible assets
1,625
1,416
Impairment
      of goodwill
23,515
475
Research
      and development expenditure
206
198
Advertising
      costs
670
660
Staff
      costs (see note 34)
2,310
2,185
Operating
      lease rentals payable:
Plant
      and machinery
35
37
Other
      assets including fixed line rentals
933
873
Loss
      on disposal of property, plant and equipment
69
68
Own
      costs capitalised attributable to the construction or acquisition of property,
      plant and equipment
(256
)
(250
)
The total
  remuneration of the Group's auditors, Deloitte & Touche LLP, and its
  affiliates for services provided to the Group's subsidiary undertakings
  is analysed below:
2006
2005
£m
£m
Audit
      fees
4
4
Audit-related
      fees:
Audit
      regulatory reporting
1
–
Due
      diligence reviews
1
1
Tax
      fees
1
1
Other
      fees
1
1
8
7
The total
  remuneration includes £1 million (2005: £1 million) in respect of the Group's
  discontinued operations in Japan.
In addition to the
above, the Group's joint ventures and associated undertakings paid fees totalling £2 million (2005: £2 million) and £4 million (2005:
£5 million), respectively, to Deloitte & Touche LLP and its affiliates
during the year.
A description of the work performed by the Audit Committee in order to safeguard auditor independence when non audit services are provided is set out in the Corporate Governance
section on page 57. In the year ended 31 March 2006, the Audit Committee pre-approved all services.
Vodafone
            Group Plc
Annual Report 2006
83
Back to Content
Notes to the Consolidated Financial Statements
continued
5.   Investment
  income and financing costs
2006
2005
£m
£m
Investment income
Available-for-sale investments:
Dividends received
41
19
Loans and receivables
153
201
Fair value adjustments recognised in the income statement:
Derivatives - foreign exchange contracts and interest rate futures
159
74
353
294
Financing costs
Items in hedge relationships:
Other loans
510
472
Interest rate swaps
(118
)
(198
)
Dividends on redeemable preference shares
48
–
Fair value hedging instrument
213
231
Fair value of hedged item
(186
)
(213
)
Other financial liabilities held at amortised cost:
Bank loans and overdrafts
126
129
Other loans
78
68
Dividends on redeemable preference shares
–
46
Potential interest charge on settlement of tax issues
329
245
Fair value adjustments recognised in the income statement:
Derivatives - forward starting swaps
(48
)
25
Equity put rights and similar arrangements
(1)
161
67
Finance leases
7
8
1,120
880
Net financing costs
767
586
Note:
(1)
The fair value adjustments for equity put rights and similar arrangements relates to the Group's arrangements with Telecom Egypt and it's minority
partners in the Group's other operations in Germany. Further information is provided in "Options agreements and similar arrangements" on page 42.
84
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
6.
Taxation
(Loss)/profit
  before tax is split as follows:
2006
2005
£m
£m
United Kingdom profit before tax
491
765
Overseas (loss)/profit before tax
(15,344
)
6,520
Total (loss)/profit before tax
(14,853
)
7,285
Income
       tax expense
Tax on (loss)/profit from continuing operations, as shown
       in the income statement, is as follows:
2006
2005
£m
£m
United Kingdom corporation tax expense/(income) at 30%:
Current year
169
339
Adjustments in respect of prior years
(15
)
(79
)
154
260
Overseas current tax expense/(income):
Current year
2,077
1,774
Adjustments in respect of prior years
(418
)
(154
)
1,659
1,620
Total current tax expense
1,813
1,880
Deferred tax on origination and reversal of temporary differences:
United Kingdom deferred tax
444
234
Overseas deferred tax
123
(245
)
Total deferred tax expense/(income)
567
(11
)
Total tax on (loss)/profit from continuing operations
2,380
1,869
Tax recognised
    directly in equity
2006
2005
£m
£m
Current
      tax credit
(6
)
(10
)
Deferred
      tax credit
(11
)
(35
)
Total
      tax credited directly to equity
(17
)
(45
)
Factors affecting tax expense for the year
The
table below explains the differences between the expected tax expense on continuing
operations, at the UK statutory tax rate of 30% for 2006 and 2005, and the Group's total
tax expense for each year. Further discussion of the current year tax expense can be found in the section titled "Performance – Operating Results – Group Overview – 2006 financial year compared to 2005 financial year – Taxation."
2006
2005
£m
£m
(Loss)/profit before tax on continuing operations as shown in the income statement
(14,853
)
7,285
Expected tax (credit)/ charge on profit from continuing operations at UK statutory tax rate
(4,456
)
2,186
Effect of taxation of associated undertakings, reported within operating profit
133
134
Non deductible impairment losses
7,055
143
Expected tax charge at UK statutory rate on profit from continuing operations, before impairment losses and taxation of associates
2,732
2,463
Effect of different statutory tax rates of overseas jurisdictions
411
433
Other expenses not deductible for tax purposes
299
367
Deferred tax on overseas earnings
(78
)
(66
)
Effect of previously unrecognised temporary differences
(71
)
(463
)
Prior period adjustments
(470
)
(417
)
Exclude taxation of associated undertakings
(443
)
(448
)
Total tax expense on (loss)/profit from continuing operations
2,380
1,869
Vodafone
            Group Plc
Annual Report 2006
85
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
6.   Taxation
continued
Deferred tax
Analysis
  of movements in net deferred tax balance during the year:
2006
£m
1 April 2005
(3,665
)
Reclassification as held for sale
(717
)
Exchange movements
(217
)
Charged to the income statement
(567
)
Credited to the statement of recognised income and expense
8
Acquisitions and disposals
(372
)
31 March 2006
(5,530
)
Deferred tax assets and liabilities in respect of continuing operations, before
offset of balances within countries, are as follows:
Net
      recognised
Amount
      credited
Less:
deferred
      tax
/(charged)
      in
Gross
      deferred
Gross
      deferred
amounts
asset/
income
tax
      asset
tax
      liability
unrecognised
(liability)
statement
£m
£m
£m
£m
£m
Accelerated
      tax depreciation
155
(1,702
)
(48
)
(1,595
)
(91
)
Accelerated
      tax depreciation
155
(1,702
)
(48
)
(1,595
)
(91
)
Tax
      losses
9,565
–
(9,191
)
374
(85
)
Deferred
      tax on overseas earnings
–
(4,025
)
–
(4,025
)
(318
)
Other
      short term timing differences
4,073
(1,418
)
(2,939
)
(284
)
(73
)
31 March
      2006
13,793
(7,145
)
(12,178
)
(5,530
)
(567
)
Analysed
    in the balance sheet, after offset of balances within countries, as:
£m
Deferred
    tax asset
140
Deferred
    tax liability
(5,670
)
(5,530
)
Net
      recognised
Amount
      credited
Less:
deferred
      tax
/(charged)
      in
Gross
      deferred
Gross
      deferred
amounts
asset/
income
tax
      asset
tax
      liability
unrecognised
(liability)
statement
£m
£m
£m
£m
£m
Accelerated
      tax depreciation
293
(1,604
)
(20
)
(1,331
)
(175
)
Tax
      losses
8,248
–
(7,370
)
878
69
Deferred
      tax on overseas earnings
–
(3,427
)
–
(3,427
)
(245
)
Other
      short term timing differences
5,017
(1,065
)
(3,737
)
215
362
31 March
      2005
13,558
(6,096
)
(11,127
)
(3,665
)
11
Analysed in the balance sheet, after offset of balances within countries, as:
£m
Deferred tax asset
1,184
Deferred tax liability
(4,849
)
(3,665
)
Deferred tax balances at 31 March 2005 above are inclusive of discontinued operations.
The amounts reported for the 2005 income statement are for continuing operations.
Further
deferred tax credits of £35 million for accelerated tax depreciation, £433
million tax losses and £103 million other short term timing differences
are included within amounts related to discontinued operations in the 2005 income
statement.
Factors affecting the tax charge in future years
Factors
that may affect
the Group's future tax charge include one-off restructuring benefits, the
resolution of open issues, future planning opportunities, corporate acquisitions
and disposals, changes in tax legislation and rates, and the use of brought forward
tax losses.
In particular, the
Group's subsidiary Vodafone 2 is responding to an enquiry by HM Revenue & Customs
("HMRC") with regard to the UK tax treatment of one of its Luxembourg
holding companies under the controlled foreign companies ("CFC") rules.
Further details in relation to this enquiry are included in note 31 "Contingent
Liabilities". At 31 March 2006, the Group holds provisions of £1,822
million tax and £276 million interest in respect of the potential UK tax
liability that may arise from this enquiry (2005: £1,600 million tax and £157
million interest). Management considers these amounts are sufficient to settle
any assessments that may result from the enquiry. However, the amount ultimately
paid may differ materially from the amount accrued and, therefore, could affect
the overall profitability of the Group in future periods. In the absence of any
material unexpected developments, the provisions are likely to be reassessed
when the views of the European Court of Justice become known.
86
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
At 31 March 2006, the gross amount and expiry dates of losses available for carry
forward are as follows:
Expiring
      within
5
      years
Unlimited
Total
£m
£m
£m
Losses
      for which a deferred tax asset is recognised
1
1,451
1,452
Losses
      for which no deferred tax is recognised
172
31,331
31,503
173
32,782
32,955
Included above are
losses amounting to £1,939 million (2005: £1,870 million) in respect
of UK subsidiaries which are only available for offset against future capital
gains and since it is uncertain whether these losses will be utilised, no deferred
tax asset has been recognised.
The losses above also
include £27,545 million (2005 £20,898 million) that have arisen in
overseas holding companies as a result of revaluations of those companies' investments
for local GAAP purposes. Since it is uncertain whether these losses will be utilised
no deferred tax asset has been recognised.
In addition to the losses described above, the Group has potential tax losses
of £35,250 million (2005: £34,674 million) in respect of a write
down in the value of investments in Germany. These losses have to date been denied
by the German tax authorities. Vodafone is in continuing discussions with them
regarding the availability of the losses, however the outcome of these discussions
and the timing of the resolution are not yet known. The Group has not recognised
the availability of the losses, nor the income statement benefit arising from
them, due to this uncertainty. If upon resolution a benefit is recognised, it
may impact both the amount of current income taxes provided since the date of
initial deduction and the amount of the benefit from tax losses the Group will
recognise. The recognition of these benefits could affect the overall profitability
of the Group in future periods.
The Group holds provisions in respect of deferred taxation that would arise if
temporary differences on investments in subsidiaries, associates and interests
in joint ventures were to be realised after the balance sheet date. No deferred
tax liability has been
recognised in respect of a further £23,038 million (2005: £15,060
million) of unremitted earnings of subsidiaries, associates and joint ventures
because the Group is in a position to control the timing of the reversal of the
temporary difference and it is probable that such differences will not reverse
in the foreseeable future.
7.   Equity
  dividends
2006
2005
£m
£m
Declared
      and paid during the financial year:
Final
      dividend for the year ended 31 March 2005: 2.16 pence per share
(2004:
      1.078 pence per share)
1,386
728
Interim
      dividend for the year ended 31 March 2006: 2.20 pence per share
(2005:
      1.91 pence per share)
1,367
1,263
2,753
1,991
Proposed
      or declared after the balance sheet date and not recognised as a liability:
Final
      dividend for the year ended 31 March 2006: 3.87 pence per share
(2005:
      2.16 pence per share)
2,327
1,386
Vodafone
            Group Plc
Annual Report 2006
87
Back to Contents
Notes to the Consolidated Financial Statements
continued
8.
(Loss)/earnings per share
2006
2005
Millions
Millions
Weighted
      average number of shares for basic (loss)/earnings per share
62,607
66,196
Effect
      of dilutive potential shares: restricted shares and share options
–
231
Weighted
      average number of shares for diluted (loss)/earnings per share
62,607
66,427
£m
£m
(Loss)/earnings
      for basic and diluted earnings per share
Continuing
      operations
(17,318
)
5,375
Discontinued
      operations
(4,598
)
1,035
Total
(21,916
)
6,410
Pence
    per share
Pence
    per share
(Loss)/earnings per share from continuing operations:
Basic (loss)/earnings per share
(27.66
)
8.12
Diluted (loss)/earnings per share
(2)
(27.66
)
8.09
(Loss)/earnings per share from continuing and discontinued operations
(1)
:
Basic (loss)/earnings per share
(35.01
)
9.68
Diluted (loss)/earnings per share
(2)
(35.01
)
9.65
£m
£m
Basic and diluted (loss)/earnings per share for continuing operations is stated inclusive of the following items:
Impairment losses (note 10)
(23,515
)
(475
)
Other income and expense
15
–
Share of associated undertakings non-operating income (note 14)
17
–
Non-operating income and expense
(2
)
(7
)
Changes in fair value of equity put rights and similar arrangements (note 5)
(3)
(161
)
(67
)
Tax on the above items
–
(3
)
Pence
    per share
Pence
    per share
Impairment losses
(37.56
)
(0.72
)
Other income and expense
0.02
–
Share of associated undertakings non-operating income
0.03
–
Non-operating income and expense
–
(0.01
)
Changes in fair value of equity put rights and similar arrangements
(3)
(0.26
)
(0.10
)
Tax on the above items
–
–
Notes:
(1)
See note 29 for further information on discontinued operations including the per share effect of discontinued operations.
(2)
In the year ended 31 March 2006, 183 million shares have been excluded from the calculation of diluted loss per share as they are anti dilutive.
(3)
Comprises
       the fair value movement in relation to the potential put rights held by
       Telecom Egypt over its 25.5% interest in Vodafone Egypt and the fair value
       of a financial liability in relation to the minority partners of Arcor,
       the Group's non-mobile operation in Germany.
Following the sale of
       16.9% of Vodafone Egypt to Telecom Egypt, the Group signed a shareholder
       agreement with Telecom Egypt setting out the basis under which the Group
       and Telecom Egypt would each contribute a 25.5% interest in Vodafone Egypt
       to a newly formed company to be 50% owned by each party. Within
this shareholder agreement, Telecom Egypt was granted a put option over its entire
       interest in Vodafone Egypt giving Telecom Egypt the right to put its shares
       back to the Group at deemed fair value. In the 2006 financial year, the
       shareholder agreement between Telecom Egypt and Vodafone expired and the
       associated rights and obligations contained in the shareholder agreement
       terminated, including the aforementioned put option. However, the original
       shareholders agreement contained an
obligation on both parties to use reasonable efforts to renegotiate a revised
       shareholder agreement for their direct shareholding in Vodafone Egypt
       on substantially the same terms as the original agreement, which may or
       may not lead to a new agreement containing a put option under the terms
       described above. As of 31 March 2006, the parties have not agreed to abandon
       such efforts and as such the financial liability relating to the initial
       shareholder agreement has been retained in the
Group's balance sheet as at 31 March 2006. Fair value movements are determined by the reference to the quoted share price of Vodafone Egypt. For the year ended 31 March 2006, a charge of £105
million was recognised.
The capital structure of Arcor provides all partners,
including Vodafone, the right to withdraw capital from 31 December 2026 onwards
and this right in relation to the minority partner has been recognised as a financial
liability. Fair value movements are determined by reference to a calculation
of enterprise value of the partnership. For the year ended 31 March 2006, a charge
of £56 million was recognised.
The valuation of these financial liabilities
is inherently unpredictable and changes in the fair value could have a material
impact on the future results and financial position of
Vodafone.
88
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
9.   Intangible
assets
Licences and
Computer
Goodwill
spectrum fees
software
Other
Total
£m
£m
£m
£m
£m
Cost:
1 April 2004
78,753
15,178
2,432
–
96,363
Exchange movements
1,519
254
39
(5
)
1,807
Arising on acquisition
1,239
229
–
654
2,122
Additions
–
126
528
–
654
Disposals
(37
)
–
(35
)
–
(72
)
31 March 2005
81,474
15,787
2,964
649
100,874
Reclassification as held for sale
(8,295
)
(214
)
(36
)
(620
)
(9,165
)
73,179
15,573
2,928
29
91,709
Exchange movements
1,291
216
51
22
1,580
Arising on acquisition
2,802
1,196
20
699
4,717
Additions
–
6
616
10
632
Disposals
(1,142
)
–
(43
)
(5
)
(1,190
)
31 March 2006
76,130
16,991
3,572
755
97,448
Accumulated impairment losses and amortisation:
1 April 2004
–
361
1,378
–
1,739
Exchange movements
–
12
21
(2
)
31
Amortisation charge for the year
(1)
–
926
494
96
1,516
Impairment losses
475
–
–
–
475
Disposals
–
–
(35
)
–
(35
)
31 March 2005
475
1,299
1,858
94
3,726
Reclassification as held for sale
–
(8
)
(7
)
(90
)
(105
)
475
1,291
1,851
4
3,621
Exchange movements
513
38
33
4
588
Amortisation charge for the year
–
1,030
493
102
1,625
Impairment losses
23,515
–
–
–
23,515
Disposals
(979
)
–
(38
)
(2
)
(1,019
)
31 March 2006
23,524
2,359
2,339
108
28,330
Net book value:
31 March 2006
52,606
14,632
1,233
647
69,118
31 March 2005
80,999
14,488
1,106
555
97,148
Note:
(1)
The
        amortisation
charge for the year includes £100 million in relation to discontinued operations
The net book value at 31 March 2006 and expiry dates of the most significant purchased licences, are as follows:
2006
Expiry date
£m
Germany
December 2020
5,165
UK
December 2021
5,245
Vodafone
            Group Plc
Annual Report 2006
89
Back to Contents
Notes
to the Consolidated Financial Statements
continued
9.
Intangible
assets
continued
Goodwill,
analysed by reportable segment, is as follows:
Other
Other
mobile
operations
Germany
Italy
Japan
Spain
UK
operations
Germany
Total
£m
£m
£m
£m
£m
£m
£m
£m
Cost:
1 April 2004
34,824
19,291
7,523
10,125
713
6,237
40
78,753
Exchange movements
941
521
(428
)
274
–
210
1
1,519
Arising on acquisition
–
–
1,200
–
–
39
–
1,239
Disposals
–
–
–
–
–
(37
)
–
(37
)
31 March 2005
35,765
19,812
8,295
10,399
713
6,449
41
81,474
Reclassification as held for sale
–
–
(8,295
)
–
–
–
–
(8,295
)
35,765
19,812
–
10,399
713
6,449
41
73,179
Exchange movements
595
330
–
172
–
192
2
1,291
Arising on acquisition
–
15
–
–
3
2,784
–
2,802
Disposals
–
–
–
–
–
(1,142
)
–
(1,142
)
31 March 2006
36,360
20,157
–
10,571
716
8,283
43
76,130
Accumulated impairment losses:
1 April 2004
–
–
–
–
–
–
–
–
Impairment losses
–
–
–
–
–
475
–
475
31 March 2005
–
–
–
–
–
475
–
475
Exchange movements
442
82
–
–
–
(11
)
–
513
Impairment losses
19,400
3,600
–
–
–
515
–
23,515
Disposals
–
–
–
–
–
(979
)
–
(979
)
31 March 2006
19,842
3,682
–
–
–
–
–
23,524
Net book value:
31 March 2006
16,518
16,475
–
10,571
716
8,283
43
52,606
31 March 2005
35,765
19,812
8,295
10,399
713
5,974
41
80,999
90
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
10.   Impairment
The
    following cash-generating units, being the lowest level of asset for which
    there are
    separately identifiable cash flows, have carrying amounts of goodwill that
    are considered
significant in comparison with the Group's total goodwill balance:
2006
2005
£m
£m
Germany
16,518
35,765
Italy
16,475
19,812
Spain
10,571
10,399
Japan
(1)
–
8,295
43,564
74,271
Multiple units without significant goodwill
9,042
6,728
52,606
80,999
Note:
(1)
Goodwill of £8,295 million relating to the Group's mobile operations in Japan has been reclassified to assets included in the disposal group held for
sale, following the Group's announcement of its intention to dispose of its operations in Japan on
17
March 2006.
In accordance with accounting standards, the Group undertakes an annual test for impairment of its cash generating units. The most recent test was undertaken at 31 January 2006. The
tests in the years ended 31 March 2006 and 2005 were based on value in use calculations.
Impairment losses
The impairment losses recognised in the income statement, as a separate line item within operating profit, in respect of goodwill are as follows:
2006
2005
£m
£m
Germany
19,400
–
Italy
3,600
–
Other Mobile Operations – Sweden
515
475
23,515
475
Germany and Italy
The
carrying value
of goodwill of the Group's mobile operations in Germany and Italy, with
each representing a reportable segment, has been impaired due to Vodafone having
revised its view of longer term trends for these businesses given certain developments
in the current market environment.
The German market has seen recent intensification in price competition, principally from new market entrants, together with high levels of penetration and continued regulated
reductions in incoming call rates.
In Italy, competitive pressures are increasing with the mobile network operators competing aggressively on subsidies and, increasingly, on price.
The impairment losses were determined as part of the annual test for impairment and were based on value in use calculations using the pre-tax risk adjusted discount rates disclosed on
page 92.
Sweden
The
impairment of
the carrying value of goodwill of the Group's mobile operation in Sweden in the years ended 31 March 2006 and 2005 resulted from fierce competition in the
Swedish market combined with onerous 3G licence obligations. Vodafone Sweden forms part of the Group's
Other Mobile Operations, which is a reportable segment.
Prior to its disposal
in the year in the year ended 31 March 2006, the carrying value of goodwill was
tested for impairment at an interim date as increased competition provided an
indicator that the goodwill may have been further impaired. The recoverable amount
of the goodwill was determined as the fair value less costs to sell, reflecting
the announcement on 31 October 2005 that the Group's 100% interest in Vodafone
Sweden was to be sold for
€
953
million (£653 million). The sale completed on 5 January
2006.
In the year ended 31 March 2005, the impairment was determined as part of the annual test for impairment and was based on value in use calculations. A pre-tax risk adjusted discount
rate of 9.7% was used in the value in use calculation.
Key assumptions used in the value in use calculations
The Group prepares and internally approves formal ten year plans for its businesses. For the year ended 31 March 2005, the Group used these plans for its value in use calculations.
The plans included cash flow projections for the mobile businesses which were expected to have growth rates in excess of the long-term average growth rates, beyond an initial five year period, for the markets in which they operate.
In the year ended
31 March 2006, the most recent management plans have shown that the need to reflect
a differing growth profile beyond an initial five year period has diminished
in a
number of the Group's key operating companies as the Group has revised its view of longer term trends. Accordingly, the directors believe it is now appropriate to use projections of five years for its value in use calculations, except in
markets which are forecast to grow ahead of the long term growth rate for the market. At 31 March 2006, the value in use calculation for the Group's
joint venture in India used a ten year plan reflecting the low penetration of
mobile telecommunications in the country and the expectation of strong revenue
growth throughout the ten year plan.
Vodafone
            Group Plc
Annual Report 2006
91
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
10.   Impairment
  continued
The key assumptions
  used in determining the value in use are:
Assumption
How
    determined
Budgeted
      EBITDA
Budgeted
      EBITDA, calculated as adjusted operating profit before depreciation and
      amortisation, has been based on past experience adjusted for the following:
•
voice
      and messaging revenue is expected to benefit from increased usage from new
      customers, the introduction of new services and traffic moving from fixed
      networks to mobile networks, though these factors will be partially offset
      by increased competitor activity, which may result in price declines, and
      the trend of falling termination rates;
•
non-messaging
      data revenue is expected to continue to grow strongly as the penetration
      of 3G enabled devices rises and new products and services are introduced;
      and
•
margins
      are expected to be impacted by negative factors such as an increase in the
      cost of acquiring and retaining customers in increasingly competitive markets
      and the expectation of further termination rates cuts by regulators; and
      by positive factors such as the efficiencies expected from the implementation
      of One Vodafone initiatives.
Budgeted
      capital expenditure
The
      cash flow forecasts for capital expenditure is based on past experience
      and includes the ongoing capital expenditure required to provide enhanced
      voice and data products and services and to meet the population coverage
      requirements of certain of the Group's licences. Capital expenditure
      includes cash outflows for the purchase of property, plant and equipment
      and computer software.
Long
      term growth rate
For
      mobile businesses, a long term growth rate into perpetuity has been determined
      as the lower of:
•
the
      nominal GDP rates for the country of operation; and
•
the
      long term compound annual growth rate in EBITDA implied by the business
      plan.
For
      non-mobile businesses, no growth is expected beyond management's plans
      for the initial five year period.
Pre-tax
      risk adjusted discount rate
The
      discount rate applied to the cash flows of each the Group's operations
      is based on the risk free rate for ten year bonds issued by the government
      in the respective market, adjusted for a risk premium to reflect both the
      increased risk of investing in equities and the systematic risk of the specific
      Group operating company. In making this adjustment, inputs required are
      the equity market risk premium (that is the required increased return required
      over and above a risk free rate by an investor who is investing in the market
      as a whole) and the risk adjustment ("beta") applied to reflect
      the risk of the specific Group operating company relative to the market
      as a whole.
In
      determining the risk adjusted discount rate, management have applied an
      adjustment for the systematic risk to each of the Group's operations
      determined using an average of the beta's of comparable listed mobile
      telecommunications companies and, where available and appropriate, across
      a specific territory. Management have used a forward looking equity market
      risk premium that takes into consideration both studies by independent economists,
      the average equity market risk premium over the past ten years and the market
      risk premiums typically used by investment banks in evaluating acquisition
      proposals.
The
      following assumptions have been applied in the value in use calculations
      as follows:
Pre-tax
      risk adjusted discount rate
Long
      term growth rate
2006
2005
2006
2005
%
%
%
%
Germany
10.1
9.6
1.1
2.7
Italy
10.1
9.2
1.5
4.1
Spain
9.0
9.3
3.3
3.4
Impact of
a reasonably possible change in a key assumption
For those cash generating units, or the aggregate of cash generating units which are not individually significant, where a reasonably possible change in a key assumption would lead to
an impairment loss, the following provides additional information on the sensitivity of such a change on the recoverable amount.
Germany
Italy
£m
£m
Amount
      by which recoverable amount exceeded the carrying value at 31 January 2006
–
–
%
%
Key assumptions:
Budgeted EBITDA
(1)
0.3
(1.8
)
Budgeted capital expenditure
(2)
9.3 to 9.0
13.4 to 8.5
Notes:
(1)
Compound annual growth rates in the initial five years of the Group's approved financial plans.
(2)
Range of capital expenditure as a percentage of revenue in the initial five years of the Group's approved plans.
As noted
  above, there has been an impairment loss recognised in the year ended 31 March
  2006 in respect of Germany and Italy, whose carrying values, therefore, equalled
  their respective recoverable amounts at 31 January 2006, the date of the Group's
  annual impairment test. As a result, any adverse change in key assumption would
  cause a further impairment loss to be recognised.
92
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    Group Plc
Annual Report 2006
Back to Contents
Financials
11.   Property,
  plant and equipment
Equipment,
Land
      and
fixtures
      and
Network
buildings
fittings
infrastructure
Total
£m
£m
£m
£m
Cost:
1 April
      2004
1,193
3,893
22,759
27,845
Exchange
      movements
8
38
(54
)
(8
)
Additions
125
1,393
3,064
4,582
Disposals
(23
)
(253
)
(368
)
(644
)
31 March
      2005
1,303
5,071
25,401
31,775
Reclassification
      as held for sale
(209
)
(201
)
(7,599
)
(8,009
)
1,094
4,870
17,802
23,766
Exchange
      movements
11
199
252
462
Arising
      on acquisition
3
404
492
899
Additions
55
984
2,350
3,389
Disposal
      of businesses
(6
)
(111)
(820
)
(937
Disposals
(67
)
(257
)
(412
)
(736
)
Reclassifications
22
306
(328
)
–
31 March
      2006
1,112
6,395
19,336
26,843
Accumulated
      depreciation and impairment:
1 April
      2004
280
2,060
8,393
10,733
Exchange
      movements
4
16
(6
)
14
Charge
      for the year
(1)
81
791
3,127
3,999
Disposals
(9
)
(204
)
(200
)
(413
)
31 March
      2005
356
2,663
11,314
14,333
Reclassification
      as held for sale
(44
)
(101
)
(3,347
)
(3,492
)
312
2,562
7,967
10,841
Exchange
      movements
3
90
132
225
Charge
      for the year
62
905
2,112
3,079
Disposal
      of businesses
(1
)
(75
)
(281
)
(357
)
Disposals
(26
)
(243
)
(336
)
(605
)
Reclassifications
3
306
(309
)
–
31 March
      2006
353
3,545
9,285
13,183
Net
      book value:
31 March
      2006
759
2,850
10,051
13,660
31 March
      2005
947
2,408
14,087
17,442
Note:
(1)
The
        depreciation
charge for the year includes £1,114 million in relation to discontinued
operations.
The net book
  value of equipment, fixtures and fittings and network infrastructure includes £2 million and £50 million, respectively (2005: £3 million and £118
  million) in relation to assets held under finance leases (see note 24).
Included in the net
book value of land and buildings, equipment, fixtures and fittings and network
infrastructure are assets in the course of construction, which are not depreciated,
with a cost of £30 million, £290 million and £677 million, respectively (2005: £15 million, £360 million and £837
million).
Borrowings of £426 million (2005: £327
million) have been secured against property, plant and equipment.
Vodafone
            Group Plc
Annual Report 2006
93
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
12.   Principal
  subsidiary undertakings
At 31 March
  2006, the Company had the following subsidiary undertakings carrying on businesses
  which principally affect the profits and assets of the Group. They have the
  same year end date as the Company, unless otherwise stated, and have been included
  in the Consolidated Financial Statements.
Unless otherwise stated,
the Company's principal subsidiary undertakings all have share capital consisting
solely of ordinary shares and are indirectly held. The country of incorporation
or registration of all subsidiary undertakings is also their principal place
of operation.
Country
      of
incorporation
Percentage
(1)
Name
Principal
      activity
or
      registration
shareholdings
Arcor
      AG & Co. KG
(2)
Fixed
      line operator
Germany
73.7
Vodafone
      Albania Sh.A.
(3)
Mobile
      network operator
Albania
99.9
Vodafone
      Americas Inc.
(4)
Holding
      company
USA
100.0
Vodafone
      Czech Republic a.s.
(5)
Mobile
      network operator
Czech
      Republic
100.0
Vodafone
      D2 GmbH
Mobile
      network operator
Germany
100.0
Vodafone
      Egypt Telecommunications S.A.E.
Mobile
      network operator
Egypt
50.1
Vodafone
      Espana S.A.
Mobile
      network operator
Spain
100.0
Vodafone
      Europe B.V.
Holding
      company
Netherlands
100.0
Vodafone
      Group Services Limited
(6)
Global
      products and services provider
England
100.0
Vodafone
      Holding GmbH
(3)
Holding
      company
Germany
100.0
Vodafone
      Holdings Europe S.L.
Holding
      company
Spain
100.0
Vodafone
      Hungary Mobile Telecommunications Limited
Mobile
      network operator
Hungary
100.0
Vodafone
      International Holdings B.V.
Holding
      company
Netherlands
100.0
Vodafone
      Investments Luxembourg S.a.r.l.
Holding
      company
Luxembourg
100.0
Vodafone
      Ireland Limited
Mobile
      network operator
Ireland
100.0
Vodafone
      K.K.
(7)
Mobile
      network operator
Japan
97.7
Vodafone
      Libertel N.V.
Mobile
      network operator
Netherlands
99.9
Vodafone
      Limited
Mobile
      network operator
England
100.0
Vodafone
      Malta Limited
Mobile
      network operator
Malta
100.0
Vodafone
      Marketing S.a.r.l.
Provider
      of Partner Network services
Luxembourg
100.0
Vodafone
      Network Pty Limited
Mobile
      network operator
Australia
100.0
Vodafone
      New Zealand Limited
Mobile
      network operator
New
      Zealand
100.0
Vodafone-Panafon
      Hellenic Telecommunications Company S.A.
Mobile
      network operator
Greece
99.8
Vodafone
      Portugal-Comunicações Pessoais, S.A.
Mobile
      network operator
Portugal
100.0
Vodafone
      Romania S.A.
(3)(8)
Mobile
      network operator
Romania
100.0
Notes:
(1)
Rounded to nearest tenth of one percent.
(2)
Arcor AG & Co. KG is a partnership and, accordingly, its share capital is comprised solely of partners' capital rather than share capital.
(3)
Vodafone Romania S.A., Vodafone Albania Sh.A. and Vodafone Holding GmbH have a 31 December year end. Accounts are drawn up to 31 March 2006 for inclusion in the
Consolidated Financial Statements.
(4)
Share capital consists of 597,379,729 ordinary shares and 1.65 million class D and E redeemable preference shares, of which 100% of the ordinary shares are held by
the Group.
(5)
On 1 February 2006, Oskar Mobil a.s. changed its name to Vodafone Czech Republic a.s.
(6)
The entire issued share capital of Vodafone Group Services Limited is held directly by Vodafone Group Plc.
(7)
On 27 April 2006, the Group disposed of its 97.7% interest in Vodafone K.K. to a wholly-owned subsidiary of SoftBank Corporation.
(8)
On 18 April 2006, MobiFon S.A. changed its name to Vodafone Romania S.A.
94
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    Group Plc
Annual Report 2006
Back to Contents
Financials
13.   Investments
  in joint ventures
Principal joint ventures
Unless otherwise
  stated, the Company's principal joint ventures all have share capital consisting
  solely of ordinary shares, which are indirectly held, and the country of incorporation
  or registration is also their principal place of operation. The accounts of
  the joint ventures are drawn up to 31 March 2006 for inclusion in the Consolidated
  Financial Statements. Summarised financial information of joint ventures is
  disclosed in note 37.
Country
      of
incorporation
Percentage
(1)
Name
Principal
      activity
or
      registration
shareholdings
Bharti
      Airtel Limited
(2)
Mobile
      network and fixed line operator
India
10.0
(3)
Polkomtel
      S.A.
(4)
Mobile
      network operator
Poland
19.6
Safaricom
      Limited
(5)
Mobile
      network operator
Kenya
35.0
(3)
Vodacom
      Group (Pty) Limited
Holding
      company
South
      Africa
50.0
Vodafone
      Fiji Limited
Mobile
      network operator
Fiji
49.0
(3)
Vodafone
      Omnitel N.V.
(6)
Mobile
      network operator
Netherlands
76.9
(7)
Notes:
(1)
Rounded
      to nearest tenth of one percent.
(2)
On
      28 April 2006, Bharti Tele-Ventures Limited changed its name to Bharti Airtel
      Limited.
(3)
The
      Group holds substantive participating rights which provide it with a veto
      over the significant financial and operating policies of these entities
      and which ensure it is able to exercise joint control over these entities
      with the respective majority shareholder.
(4)
Latest
      statutory financial statements were drawn up to 31 December 2005.
(5)
The
      Group also holds two non-voting shares.
(6)
The
      principal place of operation of Vodafone Omnitel N.V. is Italy.
(7)
The
      Group considered the existence of substantive participating rights held
      by the minority shareholder which provide that shareholder with a veto right
      over the significant financial and operating policies of Vodafone Omnitel
      N.V. and determined that, as a result of these rights, the Group does not
      have control over the financial and operating policies of Vodafone Omnitel
      N.V., despite the Group's 76.9% ownership interest.
Effect
  of proportionate consolidation of joint ventures
The following
  presents, on a condensed basis, the effect of including joint ventures in the
  Consolidated Financial Statements using proportionate consolidation:
2006
2005
£m
£m
Revenue
5,756
5,423
Cost
      of sales
(2,832
)
(2,805
)
Gross
      profit
2,924
2,618
Selling
      and distribution expenses
(251
)
(230
)
Administrative
      expenses
(634
)
(389
)
Impairment
      losses
(3,600
)
–
Operating
      (loss)/profit
(1,561
)
1,999
Net
      financing costs
27
64
(Loss)/profit
      before tax
(1,534
)
2,063
Tax
      on (loss)/profit
(711
)
(782
)
(Loss)/profit
      for the financial year
(2,245
)
1,281
Intangible
      assets
20,985
21,925
Property,
      plant and equipment
2,506
1,951
Other
      non-current assets
27
470
Non-current
      assets
23,518
24,346
Cash
      and cash equivalents
1,345
3,931
Other
      current assets
1,148
1,013
Current
      assets
2,493
4,944
Total
      assets
26,011
29,290
Current
      liabilities
2,059
1,583
Other
      non-current liabilities
535
363
2,594
1,946
Total
      equity shareholders' funds
23,402
27,340
Minority
      interests
15
4
Total
      equity and liabilities
26,011
29,290
Vodafone
      Group Plc
Annual Report 2006
95
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
14.   Investments
  in associated undertakings
The Company's
  principal associated undertakings all have share capital consisting solely of
  ordinary shares, unless otherwise stated, and are all indirectly held. The country
  of incorporation or registration of all associated undertakings is also their
  principal place of operation. The accounts of the associated undertakings are
  drawn up to 31 March 2006 for inclusion in the Consolidated Financial Statements.
  The latest statutory financial statements of the associated undertakings were
  drawn up to 31 December 2005. Summarised financial information of associated
  undertakings is disclosed in note 37.
Percentage
(1)
Country
      of
shareholding/
incorporation
      or
partnership
Name
Principal
      activity
registration
interest
Belgacom
      Mobile S.A.
Mobile
      network operator
Belgium
25.0
Cellco
      Partnership
(2)
Mobile
      network operator
USA
45.0
Société
      Française du Radiotéléphone S.A.
Mobile
      network and fixed line operator
France
44.0
Swisscom
      Mobile A.G.
Mobile
      network operator
Switzerland
25.0
Notes:
(1)
Rounded to nearest tenth of one percent.
(2)
Cellco
      Partnership trades under the name Verizon Wireless. The registered or principal
      office of the partnership is 180 Washington Valley Road, Bedminster, New
      Jersey 07921, USA.
The Group's
  share of the aggregated financial information of equity accounted associated
  undertakings is set out below:
2006
2005
£m
£m
Revenue
12,480
10,546
Operating
      profit
3,133
2,668
Non-operating
      income and expense
17
–
Net
      interest
(227
)
(197
)
Tax
      on profit
(443
)
(448
)
Minority
      interest
(52
)
(43
)
Share
      of result in associated undertakings
2,428
1,980
Non-current
      assets
29,055
25,739
Current
      assets
2,183
2,331
Share
      of total assets
31,238
28,070
Non-current
      liabilities
4,141
2,476
Current
      liabilities
3,468
4,938
Minority
      interests
432
422
Share
      of total liabilities
8,041
7,836
Share
      of net assets in associated undertakings
23,197
20,234
15.   Other
  investments
Other investments
  comprise the following, all of which are available-for-sale:
2006
2005
£m
£m
Listed
      securities:
Equity
      securities
1,938
1,117
Unlisted
      securities:
Equity
      securities
7
16
Public
      debt and bonds
20
16
Cash
      held in restricted deposits
154
32
2,119
1,181
The fair
  values of listed securities are based on quoted market prices, and include the
  Group's 3.3% investment in China Mobile (Hong Kong) Limited, which is listed
  on the Hong Kong and New York stock exchanges and incorporated under the laws
  of Hong Kong. China Mobile (Hong Kong) Limited is a mobile network operator
  and its principal place of operation is China.
Unlisted
  equity securities are recorded at cost, as their fair values cannot be reliably
  measured as there is no active market upon which they are traded.
For all
  other unlisted securities, the carrying amount approximates the fair value.
The total
  unrealised gain in respect of listed securities was £1,080 million (2005:
  £330 million).
96
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
16.   Inventory
2006
2005
£m
£m
Goods
      held for resale
297
440
Inventory is reported net of allowances for obsolescence, an analysis of which is as follows:
2006
2005
£m
£m
At 1
      April
121
189
Transfer
      in respect of discontinued operations
(40
)
–
Exchange
      movements
1
(4
)
Amounts
      charged/(credited) to the income statement
15
(64)
At 31
      March
97
121
Cost of
  sales includes amounts related to inventory amounting to £3,662 million
  (2005: £3,205 million).
17.   Trade
  and other receivables
2006
2005
£m
£m
Included
      within non-current assets:
Trade
      receivables
37
42
Other
      receivables
28
113
Prepayments
      and accrued income
65
66
Derivative
      financial instruments
231
364
361
585
Included
      within current assets:
Trade
      receivables
2,462
2,802
Amounts
      owed by associated undertakings
12
22
Other
      receivables
399
396
Prepayments
      and accrued income
1,486
1,900
Derivative
      financial instruments
79
44
4,438
5,164
The Group's trade receivables are stated after allowances for bad and doubtful debts, an analysis of which is as follows:
2006
2005
£m
£m
At 1
      April
474
441
Transfer
      in respect of discontinued operations
(41
)
–
Exchange
      movements
4
5
Amounts
      charged to administrative expenses
168
222
Trade
      receivables written off
(174
)
(194
)
At 31
      March
431
474
Concentrations
  of credit risk with respect to trade receivables are limited due to the Group's
  customer base being large and unrelated. Due to this, the directors believe
  there is no further credit risk provision required in excess of the allowance
  for bad and doubtful debts.
The carrying
  amounts of trade and other receivables approximate their fair value. Trade and
  other receivables are predominantly non-interest bearing.
Vodafone
      Group Plc
Annual Report 2006
97
Back to Contents
Notes
      to the Consolidated Financial Statements
continued
17.   Trade
      and other receivables
continued
Included
within "Derivative financial instruments" is the following:
2006
2005
£m
£m
Fair value through the income statement:
Interest rate swaps
19
–
Foreign exchange swaps
30
42
Option contracts
1
–
Other derivatives
–
1
50
43
Fair value hedges:
Interest rate swaps
260
365
310
408
The fair values of these financial instruments are calculated by discounting the future cash flows to net present values using appropriate market interest and foreign currency rates
prevailing at the year end.
18.   Cash
    and cash equivalents
2006
2005
£m
£m
Cash at bank and in hand
948
343
Money market funds
1,841
2,708
Repurchase agreements
–
206
Commercial paper
–
512
Cash and cash equivalents as presented in the balance sheet
2,789
3,769
Bank overdrafts
(18
)
(43)
Cash and cash equivalents of discontinued operations (note 29)
161
–
Cash and cash equivalents as presented in the cash flow statement
2,932
3,726
Bank balances and money market funds comprise cash held by the Group on a short-term basis with original maturity of three months or less. The carrying amount of these assets
approximates their fair value.
All commercial paper and repurchase agreements have a maturity of less than three months and the carrying value approximates the fair value.
All repurchase agreements represent fully collateralised bank deposits.
19.   Called
       up share capital
2006
2005
Number
£m
Number
£m
Authorised:
Ordinary shares of US$0.10 each
78,000,000,000
4,875
78,000,000,000
4,875
Ordinary shares allotted, issued and fully paid:
1 April
68,380,866,539
4,286
68,263,933,048
4,280
Allotted during the year
120,466,245
7
116,933,491
6
Cancelled during the year
(2,250,000,000
)
(128
)
–
–
31 March
66,251,332,784
4,165
68,380,866,539
4,286
Note:
(1)
At
        31 March 2006, the Group held 6,132,757,329 (2005: 3,814,233,598) treasury
        shares with a nominal value if £353 million (2005: £205 million).
        The market value of shares held is £7,390 million (2005: £5,359
    million).
Allotted during the year
Nominal
value
Net proceeds
Number
£m
£m
UK share awards and option scheme awards
85,744,935
5
122
US share awards and option scheme awards
34,721,310
2
37
Total for share option schemes and restricted stock awards
120,466,245
7
159
Cancelled during the year
During the year 2,250,000,000 (2005: nil) treasury shares were cancelled in order to comply with Companies Act 1985 requirements in relation to the amount of issued share capital that
can be held in treasury.
98
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
20.   Share-based
payments
The Company currently uses a number of equity settled share plans to grant options and shares to its directors and employees.
Share options
Vodafone Group savings related and Sharesave schemes
The
Vodafone Group 1998 Sharesave Scheme (the "Sharesave Scheme") enables UK staff to acquire shares in the Company through monthly savings of up to £250 a year over a
three or five year period, at the end of which they also receive a tax free bonus. The savings and bonus may then be used to purchase shares at the option price, which is set at the beginning of the savings contract and usually at a discount of 20%
to the then prevailing market price of the Company's shares. Invitations
to participate in this scheme are usually made annually.
Vodafone Group executive schemes
The Company has a number of discretionary share option plans, under which awards are no longer made. The current share options plans in place are the Vodafone Group 1998 Company Share
Option Scheme and Vodafone Group 1988 Executive Share Option Scheme (which are UK HM Revenue and Customs approved) and the Vodafone Group 1998 Executive Share Option Scheme and the Vodafone 1988 Share Option Scheme (which are unapproved). Options
under discretionary schemes are subject to performance conditions. Options are normally exercisable between three and ten years from the date of grant.
Vodafone Group 1999 Long Term Stock Incentive Plan and ADSs
The Vodafone Group Plc 1999 Long Term Stock Incentive Plan is a discretionary plan under which both share option grants and share awards may be made. For grants made to US employees,
prior to 7 July 2003 the options have phased vesting over a four year period and are exercisable in respect of ADSs. For grants made after 6 July 2003, options are normally exercisable between three and ten years from the date of grant, subject to
the satisfaction of predetermined performance conditions and are exercisable in respect of ordinary shares listed on the London Stock Exchange, or ADSs for US employees.
Other share option schemes
Share
option schemes are operated by certain of the Group's subsidiary and associated
undertakings, under which options are only issued to key personnel.
Share plans
Share Incentive Plan
The
Share Incentive Plan enables UK staff to acquire shares in the Company through
monthly purchases
of up to £125 per month or 5% of salary, whichever is lower. For each share
purchased by the employee, the Company provides a free matching share.
In addition to the
above, all permanent employees at 1 April 2005 received an award of 320 shares
(2005: 350) (known as "All Shares") in Vodafone Group Plc on 1 July 2005
(5 July 2004), under the Vodafone Group Plc Global All Employee Share Plan. The awards vest after two years and are not subject to performance conditions other than continued
employment.
Restricted share plans
Under the Vodafone Group Short Term Incentive Plan, introduced in 1998, shares are conditionally awarded to directors based on achievement of one year performance targets. Release of
the shares is deferred for a further two years and is subject to continued employment. Additional shares are released at this time if a further performance condition has been satisfied over the two year period.
Under the Vodafone Group Long Term Incentive Plan and the Vodafone Group Plc 1999 Long Term Stock Incentive Plan referred to above, awards of performance shares are granted to
directors and certain employees. The release of these shares is conditional upon achievement of performance targets measured over a three year period.
Under these restricted share plans, the maximum aggregate number of ordinary shares which may be issued in respect of options or awards will not (without shareholder approval)
exceed:
a.
10% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which
have been allocated in the preceding ten year period under all plans; and
b.
5% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which
have been allocated in the preceding ten year period under all plans other than the Sharesave Scheme and the Vodafone Group Plc All Employee Share Plan.
Vodafone
            Group Plc
Annual Report 2006
99
Back to Contents
Notes
      to the Consolidated Financial Statements
continued
20.   Share-based
      payments
continued
Movements in
ordinary share options and ADS options outstanding
ADS
Ordinary
2006
2005
2006
2005
Millions
Millions
Millions
Millions
1 April
11
18
1,123
1,184
Granted during the year
–
–
64
60
Forfeited during the year
–
(2
)
(40
)
(61
)
Exercised during the year
(2
)
(5
)
(325
)
(60
)
Expired during the year
(1
)
–
(35
)
–
31 March
8
11
787
1,123
Weighted average exercise price:
1 April
$24.49
$23.36
£1.25
£1.16
Granted during the year
–
–
£1.35
£1.17
Forfeited during the year
–
$28.52
£1.46
£1.43
Exercised during the year
$15.08
$16.75
£0.93
£0.94
Expired during the year
$36.83
–
£1.83
–
31 March
$26.53
$24.49
£1.32
£1.25
Summary of options outstanding and exercisable at 31 March 2006
Outstanding
Exercisable
Weighted
Weighted
Weighted
average
Weighted
average
Outstanding
average
remaining
Exercisable
average
remaining
shares
exercise
contractual life
shares
exercise
contractual life
Millions
price
Months
Millions
price
Months
Vodafone Group Savings Related and Sharesave Scheme:
£0.01 – £1.00
21
£0.84
24
–
–
–
£1.01 – £2.00
12
£1.10
39
–
–
–
33
£0.93
30
–
–
–
Vodafone Group Executive Schemes:
£1.01 – £2.00
17
£1.58
29
17
£1.58
29
£2.01 – £3.00
33
£2.75
49
33
£2.75
49
50
£2.34
42
50
£2.34
42
Vodafone Group 1999 Long Term Stock Incentive Plan:
£0.01 – £1.00
227
£0.91
75
227
£0.91
75
£1.01 – £2.00
446
£1.39
78
213
£1.56
60
£2.01 – £3.00
12
£2.92
16
12
£2.92
16
685
£1.26
76
452
£1.27
66
Other Share Option Plans:
£0.01 – £1.00
2
£0.73
16
2
£0.73
15
£1.01 – £2.00
14
£1.37
37
11
£1.47
36
£2.01 – £3.00
3
£2.17
25
3
£2.17
25
19
£1.45
33
16
£1.54
32
Vodafone Group 1999 Long Term Stock Incentive Plan:
$10.01 – $20.00
2
$13.96
76
–
–
–
$20.01 – $30.00
3
$21.60
53
1
$22.55
28
Greater
    than $30.01
3
$42.59
7
3
$42.59
7
8
$26.49
44
4
$35.20
15
100
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Movements in non-vested shares during the year ended 31 March 2006 is as follows:
All Shares
Other
Total
Weighted
Weighted
Weighted
average fair
average fair
average fair
value at grant
value at grant
value at grant
Millions
date
Millions
date
Millions
date
1 April 2005
19
£1.11
103
£1.07
122
£1.08
Granted
19
£1.27
73
£1.22
92
£1.23
Vested
(1
)
£1.12
(16
)
£1.04
(17
)
£1.04
Forfeited
(2
)
£1.19
(19
)
£1.02
(21
)
£1.04
31 March 2006
35
£1.19
141
£1.16
176
£1.17
Fair
      value
ADS
      Options
Ordinary
      Share Options
Board
      of directors and
Other
and
      Executive Committee
Other
2006
2005
2006
2005
2006
2005
Expected
      life of option (years)
8
      – 9
6
      – 7
6
      – 7
5
      – 6
8
      – 9
6
      – 7
Expected
      share price volatility
17.9
      –18.9%
25.6
      – 26.6%
17.6
      –18.6%
24.3
      – 25.3%
17.9
      –18.9%
25.6
      – 26.6%
Dividend
      yield
2.8
      – 3.2%
1.7
      – 2.1%
2.6
      – 3%
1.7
      – 2.1 %
2.8
      – 3.2%
1.7
      – 2.1%
Risk
      free rates
4.2%
5.1%
4.2%
5.2%
4.2%
5.1%
Exercise
      price
£1.36
£1.40
£1.45
£1.40
£1.36
£1.40
The fair value of the options is estimated at the date of grant using a lattice-based option valuation model (i.e. binomial model) that uses the assumptions noted in the above table.
  Lattice-based option valuation models incorporate ranges of assumptions for inputs and those ranges are disclosed above. The executive options have a market based performance condition attached and hence the assumptions are disclosed
  separately.
The Group uses historical data to estimate option exercise and employee termination within the valuation model; seperate groups of employees that have similar historical exercise
behaviour are considered separately for valuation purposes. The expected life of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the
range given above results from certain groups of employees exhibiting different behaviour. Expected volatilities are based on implied volatilities as determined by a simple average of no less than three international banks excluding the highest and
lowest numbers. The risk-free rates for periods within the contractual life of the option are based on the UK gilt yield curve in effect at the time of grant.
Shares used for the
Group's employee incentive plans can be newly issued shares, shares held
in treasury or market purchased shares either through the Company's employee
benefit trust or direct from the market or a combination of sources. The source
of the shares is determined by the Company having regard to what is considered
the most efficient source at the relevant time.
Some share awards
have an attached market condition, based on Total Shareholder Return ("TSR"), which is taken into account when calculating fair value of the share awards.
The valuation methodology for the TSR was based on Vodafone's ranking within
the same group of companies (where possible) over the past 10 years. The volatility
of the ranking over a three year period was used to determine the probability
weighted percentage number of shares that could be expected to vest and hence
affect fair value.
Other information
The weighted
  average grant-date fair value of options granted during the year 2006 was £0.30 (2005: £0.34).
  The total intrinsic value of options exercised during the year
ended
31
March 2006 was £164 million (2005: £28 million). The aggregate intrinsic value of fully vested share options outstanding at the year end was £68 million and the
aggregate intrinsic value of fully vested share options exercisable at the year end was £58 million. Cash received from the exercise of options under share options schemes was £356 million and the tax benefit realised from options
exercised during the annual period was £24 million.
The total fair value
of shares vested during the year ended 31 March 2006 was £18 million (2005: £5
million).
The compensation cost
that has been charged against income in respect of share options and share plans
for continuing operations was £109 million (2005: £130 million),
which is comprised entirely of equity-settled transactions. Including discontinued operations, the compensation cost charged against income in respect of share options and share plans in total was £114 million (2005: £137 million). The
total income tax benefit recognised in the consolidated income statement was £50 million (2005: £17 million). Compensation costs capitalised during the years ended 31 March 2006 and 31 March 2005 were insignificant. As of 31 March 2006,
there was £162 million of total compensation cost relating to non-vested
awards not yet recognised, which is expected to be recognised over a weighted
average period of two years.
No cash was used to settle equity instruments granted under share-based payment schemes.
The average share price for the financial year was 136 pence.
Vodafone
            Group Plc
Annual Report 2006
101
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
21.   Transactions
  with equity shareholders
Capital
Share premium
redemption
Own shares
Additional paid
account
reserve
held
in capital
£m
£m
£m
£m
1 April 2004
52,154
–
(1,136
)
99,950
Issue of new shares
130
–
–
(28
)
Purchase of own shares
–
–
(3,997
)
–
Own shares released on vesting of share awards
–
–
12
–
Share-based payment charge, inclusive of tax credit of £22 million
–
–
–
159
31 March 2005
52,284
–
(5,121
)
100,081
Issue of new shares
152
–
–
(44
)
Purchase of own shares
–
–
(6,500
)
–
Own shares released on vesting of share awards
8
–
370
(8
)
Cancellation of own shares held
–
128
3,053
–
Share-based payment charge, inclusive of tax credit of £9 million
–
–
–
123
31 March 2006
52,444
128
(8,198
)
100,152
22.   Movements in accumulated other recognised income and expense
Available-for-sale
Translation
Pensions
investments
Asset revaluation
reserve
reserve
reserve
surplus
Total
£m
£m
£m
£m
£m
1 April 2004
–
–
233
–
233
Gains/(losses) arising in the year
1,521
(102
)
106
–
1,525
Tax effect
–
23
–
–
23
31 March 2005
1,521
(79
)
339
–
1,781
Gains/(losses) arising in the year
1,486
(43
)
710
112
2,265
Foreign exchange recycled on business disposal
36
–
–
–
36
Tax effect
–
13
(5
)
–
8
31 March 2006
3,043
(109
)
1,044
112
4,090
23.   Movements in retained losses
2006
2005
£m
£m
1 April
(39,511
)
(43,930
)
(Loss)/profit for the financial year
(21,916
)
6,410
Dividends (note 7)
(2,753
)
(1,991
)
Loss on issue of treasury shares
(123
)
–
Cancellation of shares
(3,053
)
–
31 March
(67,356
)
(39,511
)
24.   Borrowings
2006
2005
Short-term
Long-term
Short-term
Long-term
borrowings
borrowings
Total
borrowings
borrowings
Total
£m
£m
£m
£m
£m
£m
Financial liabilities measured at amortised cost:
Bank loans
58
1,414
1,472
27
1,214
1,241
Bank overdrafts
18
–
18
43
–
43
Redeemable preference shares
–
902
902
–
845
845
Finance lease obligations
7
68
75
11
130
141
Bonds
–
3,928
3,928
–
906
906
Other liabilities
1,840
295
2,135
1,640
202
1,842
Loans in fair value hedge relationships
1,525
10,143
11,668
282
9,893
10,175
3,448
16,750
20,198
2,003
13,190
15,193
102
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Maturity of borrowings
The maturity
profile of the Group's non-derivative financial liabilities, using undiscounted
cash flows and which, therefore, differs to both the carrying value and fair
value,
is as follows:
Redeemable
Finance
Loans
      in fair
Bank
preference
lease
Other
value
      hedge
loans
shares
obligations
Bonds
liabilities
relationships
Total
£m
£m
£m
£m
£m
£m
£m
Within
      one year
58
49
12
167
1,858
2,164
4,308
In one
      to two years
36
49
11
2,044
295
1,521
3,956
In two
      to three years
36
49
11
936
–
1,187
2,219
In three
      to four years
39
49
11
55
–
5,548
5,702
In four
      to five years
1,290
49
10
55
–
267
1,671
In more
      than five years
13
1,387
42
1,375
–
7,428
10,245
1,472
1,632
97
4,632
2,153
18,115
28,101
Effect
      of discount/financing rates
–
(730
)
(22
)
(704
)
–
(6,447
)
(7,903
)
31 March
      2006
1,472
902
75
3,928
2,153
11,668
20,198
Within
      one year
27
45
21
43
1,683
590
2,409
In one
      to two years
1,176
45
21
43
192
2,143
3,620
In two
      to three years
4
45
20
43
–
1,488
1,600
In three
      to four years
5
45
18
43
–
1,056
1,167
In four
      to five years
8
45
17
43
10
5,619
5,742
In more
      than five years
21
1,323
76
1,196
–
4,806
7,422
1,241
1,548
173
1,411
1,885
15,702
21,960
Effect
      of discount/financing rates
–
(703
)
(32
)
(505
)
–
(5,527
)
(6,767
)
31 March
      2005
1,241
845
141
906
1,885
10,175
15,193
The
      maturity profile of the Group's financial derivatives, using undiscounted
      cash flows, is as follows:
2006
2005
Payable
Receivable
Payable
Receivable
£m
£m
£m
£m
Within
      one year
14,012
14,009
5,701
5,855
In one
      to two years
609
600
412
515
In two
      to three years
545
556
391
435
In three
      to four years
456
523
345
393
In four
      to five years
332
315
273
357
In more
      than five years
2,839
2,851
2,045
2,176
18,793
18,854
9,167
9,731
The currency
  split of the Group's foreign exchange derivatives, all of which mature
  in less than one year, is as follows:
2006
2005
Payable
Receivable
Payable
Receivable
£m
£m
£m
£m
Sterling
–
2,971
350
920
Euro
6,387
157
1,553
66
US dollar
3,646
9,655
1,258
3,961
Japanese
      yen
2,017
190
2,054
141
Other
1,323
361
91
247
13,373
13,334
5,306
5,335
The £39 million net payable (2005: £29 million net receivable) foreign exchange financial instruments, in the table above, are split £69 million (2005: £13
million) within trade and other payables and £30 million (2005: £42
million) within trade and other receivables.
The present value of minimum lease payments under finance lease arrangements under which the Group has leased certain of its equipment is analysed as follows:
2006
2005
£m
£m
Within
      one year
7
11
In two
      to five years
31
64
In more
      than five years
37
66
Vodafone
            Group Plc
Annual Report 2006
103
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
24.   Borrowings
continued
The
  fair value and carrying value of the Group's financial liabilities, for
  short-term borrowings and long-term borrowings, is as follows:
Fair
Fair
Carrying
Carrying
value
value
value
value
2006
2005
2006
2005
£m
£m
£m
£m
Financial
      liabilities measured at amortised cost:
Bank
      loans
58
27
58
27
Bank
      overdrafts
18
43
18
43
Finance
      lease obligations
7
11
7
11
Other
      liabilities
1,840
1,640
1,840
1,640
Loans
      in fair value hedge relationships:
1.27%
      Japanese yen 25bn bond due 2005
–
124
–
124
1.93%
      Japanese yen 25bn bond due 2005
–
124
–
124
6.35%
      US dollar 200m bond due 2005
–
34
–
34
0.83%
      Japanese yen bond due 2006
15
–
15
–
5.4%
      euro400m bond due 2006
281
–
293
–
5.75%
      euro1.5bn bond due 2006
1,063
–
1,091
–
7.5%
      US dollar 400m bond due 2006
126
–
126
–
Short-term
      borrowings
3,408
2,003
3,448
2,003
Financial
      liabilities measured at amortised cost:
Bank
      loans
1,414
1,214
1,414
1,214
Redeemable
      preference shares
902
845
902
845
Finance
      lease obligations
68
130
68
130
Bonds:
US
      dollar FRN due June 2007
1,064
–
1,064
–
US
      dollar FRN due December 2007
859
–
867
–
Euro
      FRN due July 2008
873
–
875
–
US
      dollar FRN due June 2011
201
–
202
–
5.125%
      euro 500m bond due 2015
366
375
376
371
5%
      euro 750m bond due 2018
540
554
544
535
Other
      liabilities
295
202
295
202
Loans
      in fair value hedge relationships:
0.83%
      Japanese yen 3bn bond due 2006
–
15
–
15
1.78%
      Japanese yen 25bn bond due 2006
–
126
–
123
5.4%
      euro 400m bond due 2006
–
284
–
296
5.75%
      euro 1.5bn bond due 2006
–
1,080
–
1,102
7.5%
      US dollar 400m bond due 2006
–
120
–
115
4.161%
      US dollar 150m bond due 2007
86
79
85
79
2.575%
      Japanese yen 25bn bond due 2008
–
132
–
140
3.95%
      US dollar 500m bond due 2008
281
261
281
260
4.625%
      euro 250m bond due 2008
178
180
172
175
5.5%
      euro 400m bond due 2008
34
35
34
34
6.25%
      sterling 250m bond due 2008
257
258
255
255
6.25%
      sterling 150m bond due 2008
154
155
145
148
6.65%
      US dollar 500m bond due 2008
147
141
140
129
4.625%
      euro 500m bond due 2008
316
359
355
357
4.25%
      euro 1.4bn bond due 2009
990
1,000
1,008
1,017
4.25%
      euro 500m bond due 2009
354
357
360
364
4.75%
      euro 3bn bond due 2009
624
633
593
587
2.0%
      Japanese yen 25bn bond due 2010
–
131
–
121
2.28%
      Japanese yen 25bn bond due 2010
–
133
–
125
2.50%
      Japanese yen 25bn bond due 2010
–
135
–
121
7.75%
      US dollar 2.75bn bond due 2010
1,702
1,543
1,693
1,600
5.5%
      US dollar 750m bond due 2011
428
–
430
–
3.625%
      euro 750m bond due 2012
505
–
514
–
5.0%
      US dollar 1bn bond due 2013
549
513
559
528
4.625%
      sterling 350m bond due 2014
333
–
349
–
5.375%
      US dollar 500m bond due 2015
307
260
274
260
5.375%
      US dollar 400m bond due 2015
220
208
220
208
5.0%
      US dollar 750m bond due 2015
419
–
415
–
5.75%
      US dollar 750m bond due 2016
423
–
427
–
4.625%
      US dollar 500m bond due 2018
258
245
260
245
5.625%
      sterling 250m bond due 2025
254
253
271
258
7.875%
      US dollar 750m bond due 2030
499
496
542
512
5.9%
      sterling 450m bond due 2032
477
468
480
454
6.25%
      US dollar 495m bond due 2032
293
268
281
265
Long-term
      borrowings
16,670
13,188
16,750
13,190
Fair values
  are calculated using discounted cash flows with a discount rate based upon forward
  interest rates available to the Group at the balance sheet date.
104
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Borrowing
  facilities
At 31 March
  2006, the Group's most significant committed borrowing facilities comprised
  two bank facilities of $5,925 million (£3,407 million) and $5,025 million
  (£2,890 million) expiring between two and five years and in more than
  five years, respectively (2005: two bank facilities of $5,525 million (£2,926
  million) and $4,853 million (£2,570 million)), and a ¥259 billion
  (£1,265 million, 2005: ¥225 billion (£1,112 million)) term credit
  facility, which expires between two and five years. The bank facilities remained
  undrawn throughout the year and the ¥259 billion term credit facility was
  fully drawn down on 21 December 2005.
Under the
  terms and conditions of the $5,925 million and $5,025 million bank facilities,
  lenders have the right, but not the obligation, to cancel their commitment 30
  days from the date of notification of a change of control of the Company and
  have outstanding advances repaid on the last day of the current interest period.
  The facility agreement provides for certain structural changes that do not affect
  the obligations of the Company to be specifically excluded from the definition
  of a change of control. This is in addition to the rights of lenders to cancel
  their commitment if the Company has committed an event of default. Substantially
  the same terms and conditions apply in the case of Vodafone Finance K.K.'s
  ¥259 billion term credit facility, although the change of control provision
  is applicable to any guarantor of borrowings under the term credit facility.
  As of 31 March 2006, the Company was the sole guarantor of the ¥259 billion
  term credit facility.
In addition
  to the above, certain of the Group's subsidiaries had committed facilities
  at 31 March 2006 of £271 million (2005: £168 million) in aggregate,
  of which £65 million (2005: £77 million) was undrawn. Of the total
  committed facilities, £121 million (2005: £28 million) expires in
  less than one year, £109 million (2005: £100 million) expires between
  two and five years, and £41 million (2005: £40) expires in more
  than five years.
Redeemable
  preference shares
Redeemable
  preference shares comprise class D and E preferred shares issued by Vodafone
  Americas, Inc. An annual dividend of $51.43 per class D and E preferred share
  is payable quarterly in arrears. The dividend for the year amounted to £48
  million (2005: £46 million). The aggregate redemption value of the class
  D and E preferred shares is $1.65 billion. The holders of the preferred shares
  are entitled to vote on the election of directors and upon each other matter
  coming before any meeting of the shareholders on which the holders of ordinary
  shares are entitled to vote. Holders are entitled to vote on the basis of twelve
  votes for each share of class D or E preferred stock held. The maturity date
  of the 825,000 class D preferred shares is 6 April 2020. The 825,000 class E
  preferred shares have a maturity date of 1 April 2020. The class D and E preferred
  shares have a redemption price of $1,000 per share plus all accrued and unpaid
  dividends.
Interest
  rate and currency of borrowings
Fixed
      rate borrowings
Weighted
average
Floating
Fixed
Weighted
time
      for
Total
rate
rate
average
which
      rate is
borrowings
borrowings
borrowings
interest
      rate
fixed
Currency
£m
£m
£m
%
Years
Sterling
1,511
1,511
–
–
–
Euro
6,941
5,996
945
5.1
10.8
US dollar
8,905
8,905
–
–
–
Japanese
      yen
1,296
1,296
–
–
–
Other
1,545
1,545
–
–
–
31 March
      2006
20,198
19,253
945
5.1
10.8
Sterling
1,123
1,123
–
–
–
Euro
6,216
5,238
978
5.0
11.6
US dollar
5,107
5,107
–
–
–
Japanese
      yen
2,061
2,061
–
–
–
Other
686
686
–
–
–
31 March
      2005
15,193
14,215
978
5.0
11.6
Interest
  on floating rate borrowings is based on national LIBOR equivalents or government
  bond rates in the relevant currencies.
The figures
  shown in the tables above take into account interest rate swaps used to manage
  the interest rate profile of financial liabilities.
At 31 March
  2006, the Group had entered into foreign exchange contracts to decrease its
  sterling and US dollar borrowings above by amounts equal to £2,971 million
  (2005: £570 million) and £6,009 million (2005: £2,703 million)
  respectively and to increase its euro, Japanese yen and other currency borrowings
  above by amounts equal to £6,230 million (2005: £1,487 million),
  £1,827 million (2005: £1,913 million) and £962 million (2005:
  £156 million decrease to other borrowings) respectively.
Further
  protection from euro and Japanese yen interest rate movements on debt is provided
  by interest rate swaps. At 31 March 2006 the Group had euro and Japanese yen
  denominated interest rate swaps for amounts equal to £1,536 million and
  £3,720 million respectively. The effective rates, which have been fixed,
  are 3.54% and 0.36% respectively. In addition the Group has entered into euro
  denominated forward starting interest rate swaps for amounts equal to £698
  million, £2,793 million and £698 million, which cover the periods
  June 2007 to June 2008, June 2008 to June 2009 and September 2008 to September
  2009 respectively. The effective rates, which have been fixed, range from 2.62%
  per annum to 3.02% per annum.
Vodafone
      Group Plc
Annual Report 2006
105
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
24.   Borrowings
continued
Financial risk management
The
    Group's treasury function provides a centralised service to the Group
    for funding, foreign exchange, interest rate management and counterparty risk
    management. Treasury operations are conducted within a framework of policies
    and guidelines authorised and reviewed annually by the Company's Board
    of directors, most recently on 31 January 2006. A Treasury Risk Committee,
    comprising of the Group's Chief Financial Officer, Group General Counsel
    and Company Secretary, Group Treasurer and Director of Financial Reporting,
    meets quarterly to review treasury activities and management information relating
    to treasury activities. In accordance with the Group treasury policy, a quorum
    for meetings is four members and either the Chief Financial Officer or Group
    General Counsel and Company Secretary must be present at each meeting. The
    Group accounting function, which does not report to the Group Treasurer, provides
    regular update reports of treasury activity to the Board of directors. The
    Group uses a number of derivative instruments that are transacted, for risk
    management purposes only, by specialist treasury personnel. The Group's
    internal auditors review the internal control environment regularly. There
    has been no significant change during the financial year, or since the end
    of the year, to the types of financial risks faced by the Group or the Group's
    approach to the management of those risks.
The Group's
  policy is to borrow centrally, using a mixture of long term and short term capital
  market issues and borrowing facilities, to meet anticipated funding requirements.
  These borrowings, together with cash generated from operations, are on-lent
  or contributed as equity to certain subsidiaries. The Board of directors has
  approved three debt protection ratios, being: net interest to operating cash
  flow (plus dividends from associated undertakings); retained cash flow (operating
  cash flow plus dividends from associated undertakings less interest, tax, dividends
  to minorities and equity dividends) to net debt; and operating cash flow (plus
  dividends from associated undertakings) to net debt.
These internal
  ratios establish levels of debt that the Group should not exceed other than
  for relatively short periods of time and are shared with the Group's debt
  rating agencies, being Moody's, Fitch Ratings and Standard & Poor's.
Liquidity
    risk
As at 31
    March 2006, the Group had $10.9 billion committed undrawn bank facilities
    and $15 billion and £5 billion commercial paper programmes, that are
    supported by the $10.9 billion committed bank facilities, available to manage
    its liquidity.
Market
    risk
Interest
    rate management
Under the
    Group's interest rate management policy, interest rates on monetary assets
    and liabilities are maintained on a floating rate basis, unless the forecast
    interest charge for the next eighteen months is material in relation to forecast
    results, in which case rates are fixed. In addition, fixing is undertaken
    for longer periods when interest rates are statistically low.
At 31 March
  2006, 29% (2005: 31%) of the Group's gross borrowings were fixed for a
  period of at least one year. A one hundred basis point fall or rise in market
  interest rates for all currencies in which the Group had borrowings at 31 March
  2006 would increase or reduce profit before tax by approximately £91 million,
  including mark-to-market revaluations of interest rate and other derivatives
  and the potential interest on outstanding tax issues.
Foreign
    exchange management
As Vodafone's
    primary listing is on the London Stock Exchange, its share price is quoted
    in sterling. Since the sterling share price represents the value of its future
    multi-currency cash flows, principally in euro, yen (until disposal of its
    Japan operation on 27 April 2006), sterling and US dollars, the Group has
    a policy to hedge external foreign exchange risks on transactions denominated
    in other currencies above certain de minimis levels.
The Group
  also maintains the currency of debt and interest charges in proportion with
  its expected future principal multi-currency cash flows. As such, at 31 March
  2006,113% of net debt was denominated in currencies other than sterling (73%
  euro, 21% yen, 14% US dollar and 5% other), whilst 13% of net debt had been
  purchased forward in sterling in anticipation of sterling denominated shareholder
  returns via share purchases, dividends and B share distribution. This allows
  debt to be serviced in proportion to expected future cash flows and, therefore,
  provides a partial hedge against income statement translation exposure, as interest
  costs will be denominated in foreign currencies. A relative weakening in the
  value of sterling against certain currencies in which the Group maintains debt
  has resulted in an increase in net debt of £182 million from currency
  translation differences.
When the
  Group's international net earnings for the year ended 31 March 2006 are
  retranslated assuming a 10% strengthening of sterling against all exchange rates,
  the operating profit for the year would have increased by £1,344 million
  (2005: reduced by
£645
  million), and would have been reduced by £1,642 million (2005: increased
  by £789 million) if sterling weakened by 10%.
The change
  in equity due to a 10% fall or rise in sterling rates against all exchange rates
  for the translation of net investment hedging instruments would be a decrease
  of £1,669 million or an increase of £1,365 million. However, there
  would be no net impact on equity as there would be an offset in the currency
  translation of the foreign operation.
Credit
    risk
The Group
    considers its maximum exposure to credit risk to be as follows:
2006
2005
£m
£m
Bank
        deposits
948
343
Money
        market fund investments
1,841
2,708
Commercial
        paper investments
–
512
Repurchase
        agreements
–
206
Derivative
        financial instruments
310
408
3,099
4,177
Concentrations
  of credit risk with respect to trade receivables are limited due to the Group's
  customer base being large and unrelated. Due to this, management believes there
  is no further credit risk provision required in excess of the normal provision
  for bad and doubtful receivables (note 17).
The deposits
  shown in the table equate to the principal of the amount deposited. The foreign
  exchange transactions and interest rate swaps shown in the table have been marked-to-market.
For repurchase
  agreements, collateral equivalent to the investment value is satisfied by triple-A
  rated government and/or supranational instruments and collateral is replenished
  on a daily basis. In respect of financial instruments used by the Group's
  treasury function, the aggregate credit risk the Group may have with one counterparty
  is limited by reference to the long term credit ratings assigned for that counterparty
  by Moody's, Fitch Ratings and Standard & Poor's. While these counterparties
  may expose the Group to credit losses in the event of non-performance, it considers
  the possibility of material loss to be acceptable because of this policy.
Consistent
  with development of its strategy, the Group is now targeting low single A long
  term credit ratings from Moody's, Fitch Ratings and Standard & Poor's
  having previously managed the capital structure at single A credit ratings.
  Credit ratings are not a recommendation to purchase, hold or sell securities,
  in as much as ratings do not comment on market price or suitability for a particular
  investor, and are subject to revision or withdrawal at any time by the assigning
  rating organisation. Each rating should be evaluated independently.
25.   Post
    employment benefits
Background
As at 31
    March 2006, the Group operated a number of pension plans for the benefit of
    its employees throughout the world, which vary depending on the conditions
    and practices in the countries concerned. The Group's pension plans are provided
    through both defined benefit and defined contribution arrangements. Defined
    benefit schemes provide benefits based on the employees' length of pensionable
    service and their final pensionable salary or other criteria. Defined contribution
    schemes offer employees individual funds that are converted into benefits
    at the time of retirement.
The principal defined benefit pension schemes are in the United Kingdom and Germany. The Group also operated defined benefit schemes in Japan, its discontinued operation, and in
Sweden until it was disposed of on 5 January 2006. In addition, the Group operates defined benefit schemes in Greece, Ireland, Italy and the United States. Defined contribution pension schemes are provided in Australia, Belgium, Egypt, Germany,
Greece, Hungary, Ireland, Italy, Malta, the Netherlands, New Zealand, Portugal, Spain, the United Kingdom and the United States. A defined contribution scheme is also operated in the Group's discontinued operation in Japan. There is a post
retirement medical plan in the United States for a small closed group of participants.
The Group accounts for its pension schemes in accordance with IAS 19, Employee Benefits ("IAS19"). The Group has also early adopted the amendment to IAS 19 that was
published in December 2004 regarding actuarial gains and losses, group plans and disclosures.
Scheme liabilities are assessed by independent actuaries using the projected unit funding method and applying the principal actuarial assumptions set out below. Assets are shown at
market value.
106
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
The measurement
  date for the Group's pension assets and obligations is 31 March. The measurement
  date for the Group's net periodic cost is 31 March of the previous year.
  Actuarial gains and losses are recognised in the period in which they arise.
  Payments to defined contribution schemes are charged as an expense as they fall
  due.
In the UK,
  the majority of the UK employees are members of the Vodafone Group
Pension
  Scheme (the "main scheme"), which was closed to new entrants from
  1 January 2006. This is a tax approved defined benefit scheme, the assets of
  which are held in an external trustee-administered fund. The investment policy
  and strategy of the scheme is the responsibility of the plan trustees, who are
  required to consult with the Company as well as taking independent advice on
  key investment issues. In setting the asset allocation, the Trustees take into
  consideration a number of criteria, including the key characteristics of the
  asset classes, expected risk and return, the structure and term of the member
  liabilities, diversification of assets, minimum funding and solvency requirements,
  as well as the Company's input on contribution requirements. The plan has
  a relatively low level of pensioner liabilities already in payment, meaning
  that the overall duration of plan liabilities is long term. A significant percentage
  of assets has currently been allocated to equities although this approach is
  reviewed regularly.
The main scheme is subject to quarterly funding updates by independent actuaries and to formal actuarial valuations at least every three years. The most recent formal triennial
valuation of this scheme was carried out as at 31 March 2004.
As a result of the triennial actuarial valuation, the Group's UK subsidiaries agreed to make a special lump sum contribution of £30 million (2005: £100 million)
during the financial year. The special contributions brought the funding position to 99% at 31 March 2006.
There are
    a number of separate pension and associated arrangements in Germany. There
    is no requirement to fund liabilities, however the Group funds pension obligations
    via a Contractual Trust Arrangement, in a separate legal agreement. The investment
    policy and strategy is controlled by Group appointed trustees. The investment
    approach followed is similar to that adopted by the Trustees of the UK plan
    although a higher proportion of assets are allocated to bond securities than
    to equities, reflecting the more mature nature and shorter duration of the
    liability commitments. The German schemes are subject to annual valuations,
    with the last formal valuations having been completed at 31 March 2006.
Income
      statement expense
2006
2005
£m
£m
Defined
      contributions schemes
28
18
Defined
      benefit schemes
52
52
Total
      amount charged to the income statement (note 34)
80
70
Defined
  benefit schemes
The most recent
  full formal actuarial valuations for defined benefit schemes have been updated
  by qualified independent actuaries for the financial year ended 31 March 2006
  to provide the IAS 19 disclosures below.
Major
      assumptions used
Germany
UK
Other
(1)
2006
2005
2006
2005
2006
2005
%
%
%
%
%
%
Weighted
      average actuarial assumptions used to determine
benefit
      obligations:
Rate
      of inflation
1.9
1.9
2.8
2.8
2.0
2.0
Rate
      of increase in salaries
2.9
2.9
4.8
4.8
3.0
2.9
Rate
      of increase in pensions in payment and deferred pensions
1.9
1.9
2.8
2.8
2.0
2.0
Discount
      rate
4.4
4.5
4.9
5.4
4.6
4.3
Weighted
      average actuarial assumptions used to determine net
periodic
      benefit cost:
Rate
      of inflation
1.9
2.0
2.8
2.5
2.0
2.1
Rate
      of increase in salaries
2.9
3.0
4.8
4.5
2.9
3.0
Discount
      rate
4.5
5.3
5.4
5.5
4.7
4.4
Expected
      long term rate of return on plan assets during the year
4.9
5.3
6.8
6.9
6.4
6.4
Expected
      rates of return:
Equities
6.7
6.6
7.4
7.7
6.7
6.6
Bonds
4.0
4.0
4.4
4.8
4.0
4.0
Other
      assets
2.8
2.1
–
4.9
5.3
2.8
Note:
(1)
Figures
      shown for other schemes represent weighted average assumptions of individual
      schemes.
For the US
  post retirement medical plan, the immediate trend rate for valuing the dental
  benefits was 6.5 per cent, which is assumed to reduce gradually to 5.25 per
  cent in 2008. The immediate trend rate for medical benefits was 12.0 per cent,
  which is assumed to reduce gradually to 5.25 per cent in 2013.
The expected
  return on assets assumption is derived by considering the expected long term
  rates of return on plan investments. The overall rate of return is a weighted
  average of the expected returns of the individual investments made in the group
  plans. The long term rate of return on equities and property are derived from
  considering current "risk free" rates of return with the addition
  of an appropriate future "risk premium" from an analysis of historic
  returns in various countries. The long term rates of return on bonds and cash
  investments are set in line with market yields currently available at the balance
  sheet date.
Mortality
  and life expectancy assumptions used are consistent with those recommended by
  the individual scheme actuaries, and in accordance with statutory and local
  funding requirements. The mortality tables in Germany have been updated at 31
  March 2006 in line with newly published tables.
Vodafone
      Group Plc
Annual Report 2006
107
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
25.   Post employment benefits
continued
Charges
  made to the consolidated income
statement and
consolidated statement of
  recognised income and expense on the basis of the assumptions stated above:
Germany
UK
Other
Total
2006
2005
2006
2005
2006
2005
2006
2005
£m
£m
£m
£m
£m
£m
£m
£m
Current
      service cost
7
6
38
37
12
10
57
53
Interest
      cost
10
9
36
26
6
6
52
41
Expected
        return on scheme assets
(9
)
(8
)
(44
)
(31
)
(4
)
(3
)
(57
)
(42
)
Total
        included within staff costs (note 34)
8
7
30
32
14
13
52
52
Consolidated
        statement of recognised
income
        and expense:
Total
        actuarial (gains)/losses recognised in
consolidated
        statement of recognised
income
        and expense
(5
)
20
56
72
(8
)
10
43
102
All actuarial
  gains and losses are recognised immediately.
Figures relating
  to the income statement are for continuing operations only.
The cumulative
  recognised actuarial losses for Germany, the UK and the other schemes was £15
  million, £128 million and £2 million respectively.
Fair
  value of the assets and liabilities of the schemes
The
  amount included in the balance sheet arising from the Group's obligations
  in respect of its defined benefit retirement schemes is as follows:
Germany
UK
Other
Total
2006
2005
2006
2005
2006
2005
2006
2005
£m
£m
£m
£m
£m
£m
£m
£m
Movement
      in assets:
1 April
181
165
628
433
65
42
874
640
Reclassification
      as held for sale
–
–
–
–
(3
)
–
(3
)
–
Expected
      return on scheme assets
9
8
44
31
4
3
57
42
Actuarial
      gains/(losses)
10
(1
)
99
23
12
2
121
24
Employer
      cash contributions
11
14
65
137
9
16
85
167
Member
      cash contributions
–
–
10
11
1
1
11
12
Benefits
      paid
(10
)
–
(11
)
(7
)
(6
)
–
(27
)
(7
)
Other
      movements
–
(9
)
–
–
–
–
–
(9
)
Exchange
      rate movements
4
4
–
–
1
1
5
5
31 March
205
181
835
628
83
65
1,123
874
Movement
      in scheme liabilities:
1 April
213
192
619
457
166
145
998
794
Reclassification
      as held for sale
–
–
–
–
(31
)
–
(31
)
–
Service
      cost
7
6
38
37
12
15
57
58
Interest
      cost
10
9
36
26
6
7
52
42
Member
      cash contributions
–
–
10
11
1
1
11
12
Actuarial
      (gains)/losses
5
19
155
95
4
12
164
126
Benefits
      paid
(10
)
(9
)
(11
)
(7
)
(6
)
(14
)
(27
)
(30
)
Other
      movements
–
(9
)
–
–
(8
)
–
(8
)
(9
)
Exchange
      rate movements
4
5
–
–
4
–
8
5
31 March
229
213
847
619
148
166
1,224
998
Accumulated
      benefit obligation
222
208
746
545
113
151
1,081
904
Analysis
      of net assets/(deficits):
Total
      fair value of scheme assets
205
181
835
628
83
65
1,123
874
Present
      value of funded scheme liabilities
(207
)
(191
)
(847
)
(619
)
(74
)
(108
)
(1,128
)
(918
)
Net
      assets/(deficits) for funded schemes
(2
)
(10
)
(12
)
9
9
(43
)
(5
)
(44
)
Present
      value of unfunded scheme
liabilities
(22
)
(22
)
–
–
(74
)
(58
)
(96
)
(80
)
Net
      assets/(deficits)
(24
)
(32
)
(12
)
9
(65
)
(101
)
(101
)
(124
)
Net
      assets/(deficits) are analysed as:
Assets
10
3
–
9
9
–
19
12
Liabilities
(34
)
(35
)
(12
)
–
(74
)
(101
)
(120
)
(136
)
The
      funding policy for the German and UK schemes is reviewed on a systematic
      basis in consultation with the independent scheme actuary in order to ensure
      that the funding contributions from sponsoring employers are appropriate
      to meet the liabilities of the schemes over the long term.
The
      deficit in respect of other schemes at 31 March 2006 primarily relates to
      internally funded schemes in Italy and the United States.
108
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Actual
  return on scheme assets
Germany
UK
Other
Total
2006
2005
2006
2005
2006
2005
2006
2005
£m
£m
£m
£m
£m
£m
£m
£m
Actual
      return on scheme assets
19
7
143
54
16
5
178
66
Analysis
      of scheme assets at
31
      March is as follows:
%
%
%
%
%
%
Equities
34.1
29.8
79.9
66.6
85.0
81.0
Bonds
59.1
63.6
20.1
16.7
10.0
9.7
Property
–
–
–
–
5.0
4.7
Other
6.8
6.6
–
16.7
–
4.6
100.0
100.0
100.0
100.0
100.0
100.0
The
      scheme has no investments in the Group's equity securities or in property
      currently used by the Group.
History
      of experience adjustments
Germany
UK
Other
Total
2006
2005
2006
2005
2006
2005
2006
2005
£m
£m
£m
£m
£m
£m
£m
£m
Experience
      adjustments on
scheme
      liabilities:
Amount
      (£m)
(3
)
(3
)
(1
)
(56
)
–
(1
)
(4
)
(60
)
Percentage
      of scheme liabilities (%)
1
%
1%
–
9%
–
1%
–
6%
Experience
      adjustments on scheme assets:
Amount
      (£m)
10
(1
)
99
23
12
2
121
24
Percentage
      of scheme assets (%)
5
%
1%
12
%
4%
14
%
3%
11
%
3%
Expected
      contributions and benefit payments
Germany
UK
Other
Total
£m
£m
£m
£m
Expected
        employer's contributions in the year ending 31 March 2007
16
36
9
61
Expected
      benefit payments in the year ending 31 March:
2007
16
11
7
34
2008
15
11
7
33
2009
15
11
7
33
2010
15
12
7
34
2011
15
12
7
34
2012-2017
76
66
38
180
26.   Provisions
      for liabilities and charges
Asset
retirement
Other
obligations
Legal
provisions
Total
£m
£m
£m
£m
31 March
      2005
160
188
199
547
Reclassification
      as held for sale
(25
)
–
–
(25
)
135
188
199
522
Exchange
      movements
4
3
3
10
Amounts
      capitalised in the year
14
–
–
14
Amounts
      charged to the income statement
–
1
38
39
Utilised
      in the year - payments
(3
)
(74
)
(77
)
(154
)
Amounts
      released to the income statement
(2
)
(19
)
(6
)
(27
)
31 March
      2006
148
99
157
404
Provisions
      have been analysed between current and non-current as follows:
2006
2005
£m
£m
Current
      liabilities
139
228
Non-current
      liabilities
265
319
404
547
Vodafone
      Group Plc
Annual Report 2006
109
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
26.   Provisions
  for liabilities and charges
continued
Asset retirement obligations
In the course
  of the Group's activities, a number of sites and other assets are utilised
  which are expected to have costs associated with exiting and ceasing their use.
  The associated cash outflows are generally expected to occur at the dates of
  exit of the assets to which they relate, which are long term in nature.
Legal
The
Group is involved in a number of legal and other disputes, including notification
of possible claims. The directors of the Company, after taking legal advice,
have established provisions after taking into account the facts of each case.
The timing of cash outflows associated with legal claims cannot be reasonably
determined. For a discussion of certain legal issues potentially affecting the
Group, refer to note 31 "Contingent liabilities".
Other provisions
Other provisions primarily comprise amounts provided for property and restructuring costs. The associated cash outflows for restructuring costs are substantially short term in nature.
The timing of the cash flows associated with property is dependent upon the remaining term of the associated lease.
27.   Trade
  and other payables
2006
2005
£m
£m
Included
      within non-current liabilities:
Other
      payables
61
14
Derivative
      financial instruments
148
48
Accruals
      and deferred income
357
376
566
438
Included
      within current liabilities:
Trade
      payables
2,248
3,013
Amounts
      owed to associated undertakings
29
8
Other
      taxes and social security payable
412
314
Derivative
      financial instruments
71
31
Other
      payables
440
470
Accruals
      and deferred income
4,277
4,197
7,477
8,033
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing operating expenses.
The fair values of the derivative financial instruments are calculated by discounting
the future cash flows to net present values using appropriate market interest
and foreign
currency rates prevailing at the year end.
Included within "Derivative financial instruments" is
the following:
2006
2005
£m
£m
Fair
      value hedges:
Interest
      rate swaps
148
48
Fair
      value through the income statement:
Interest
      rate swaps
2
18
Foreign
      exchange swaps
69
12
Foreign
      exchange forwards
–
1
71
31
219
79
110
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
28.   Acquisitions
The
  principal acquisitions made by the Group during the financial year are as follows:
Czech Republic and Romania – ClearWave N.V.
On
31 May 2005, the Group acquired 99.99% of the issued share capital of ClearWave
N.V. for cash consideration of £1,905 million. ClearWave N.V. is the parent
company of a group of companies involved in the provision of mobile telecommunications
in the Czech Republic and Romania. This transaction has been accounted for by
the purchase method of accounting.
Book
Fair
      value
Fair
value
adjustments
value
£m
£m
£m
Net
      assets acquired:
Intangible
      assets
87
770
857
(1)
Property,
      plant and equipment
562
(23
)
539
Inventory
7
–
7
Trade
      and other receivables
106
(12
)
94
Cash
      and cash equivalents
65
–
65
Deferred
      tax liabilities
–
(129
)
(129
)
Short
      and long-term borrowings
(550
)
(64
)
(614
)
Current
      tax liabilities
(11
)
–
(11
)
Trade
      and other payables
(153
)
(3
)
(156
)
113
539
652
Minority
      interests
(2
)
Asset
      revaluation surplus
(2)
(112
)
Goodwill
1,367
Total
      cash consideration (including £9 million of directly attributable
      costs)
1,905
Net
      cash outflow arising on acquisition:
Cash
      consideration
1,905
Cash
      and cash equivalents acquired
(65
)
1,840
Notes:
(1)
Intangible assets consist of licences and spectrum fees of £461 million and other intangibles of £396 million.
(2)
The asset revaluation surplus relates to the recognition of the fair value of intangible assets on the Group's existing 20.1% stake in MobiFon S.A.
The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within those businesses after the Group's acquisition of ClearWave
N.V.
The acquired entities and percentage of voting rights acquired was as follows:
%
MobiFon S.A. (renamed Vodafone Romania S.A.)
78.99
Oskar Mobil a.s.
99.87
ClearWave N.V.
99.99
MobiFon Holdings B.V.
99.99
Oskar Holdings N.V. (renamed Vodafone Oskar Holdings N.V.)
99.99
Oskar Finance B.V. (renamed Vodafone Oskar Finance B.V.)
99.99
ClearWave Services (Mauritius) Ltd.
99.99
Results of the acquired entities have been consolidated in the income statement from the date of acquisition, 31 May 2005.
Subsequent to the completion of the acquisition on 31 May 2005, a further 0.9%
of Vodafone Romania
S.A. was acquired for consideration of £16 million.
From the
    dates of acquisition, these entities contributed a profit of £26 million
    to the net loss of the Group.
Vodafone
            Group Plc
Annual Report 2006
111
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
28.   Acquisitions
continued
India – Bharti Airtel Limited
On
  18 November 2005, the Group acquired a 5.61% direct interest in Bharti Airtel
  Limited (previously Bharti Tele-Ventures Limited) from Warburg Pincus LLC, and
  on 22 December 2005 the Group acquired a further 4.39% indirect interest in
  Bharti Airtel Limited, bringing the Group's effective shareholding to 10.0%.
Total cash consideration was Rs.67 billion (£858 million).
Book
Fair
      value
Fair
value
adjustments
value
£m
£m
£m
Net
      assets acquired:
Intangible
      assets
49
345
394
(1)
Property,
      plant and equipment
142
(1
)
141
Inventory
1
–
1
Trade
      and other receivables
30
–
30
Cash
      and cash equivalents
9
–
9
Deferred
      tax liabilities
(2
)
(126
)
(128
)
Short
      and long-term borrowings
(56
)
–
(56
)
Current
      tax liabilities
–
(2
)
(2
)
Trade
      and other payables
(73
)
(1
)
(74
)
100
215
315
Goodwill
543
Total
      cash consideration (including £1 million of directly attributable
      costs)
858
Net
      cash outflow arising on acquisition:
Cash
      consideration
858
Cash
      and cash equivalents acquired
(9
)
849
Note:
(1)
Intangible
        assets consist of licences and spectrum fees of £343 million and
    other intangibles of £51 million.
The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within those businesses after the Group's acquisition of the shares in
Bharti Airtel Limited.
Results of the acquired entity have been proportionately consolidated in the
income statement from the dates of acquisition.
From the date of acquisition, the entity contributed a loss of £8 million
to the net loss of the Group.
112
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
South Africa – VenFin Limited
On
26 January 2006, the Group announced that its offer to acquire a 100% interest
in VenFin
Limited ("VenFin") had become wholly unconditional. VenFin's principal
asset
was a 15% stake in Vodacom Group (Pty) Limited ("Vodacom"). At 31 March
2006, the Group held an effective economic interest in VenFin of 98.7% and an
effective voting interest of 99.3%.
The combined
    cash consideration for the Group's

98.7% economic interest in VenFin was ZAR15.8 billion (£1,458 million).
Book
Fair value
Fair
value
adjustments
value
£m
£m
£m
Net assets acquired:
Intangible assets
24
600
624
(1)
Property, plant and equipment
216
–
216
Inventory
8
–
8
Trade and other receivables
74
–
74
Cash and cash equivalents
14
–
14
Deferred tax liabilities
(1
)
(180
)
(181
)
Short and long-term borrowings
(36
)
–
(36
)
Current tax liabilities
(20
)
–
(20
)
Trade and other payables
(110
)
–
(110
)
169
420
589
Minority interests
(9
)
Goodwill
878
Total cash consideration (including £7 million of directly attributable costs)
1,458
Net cash outflow arising on acquisition:
Cash consideration
1,458
Cash and cash equivalents acquired
(14
)
1,444
Note:
(1)
Intangible
        assets consist of licences and spectrum fees of £391 million and
    other intangibles of £233 million.
The goodwill is attributable to the profitability of the acquired business and the synergies expected to arise within that business after the Group's acquisition of VenFin.
Results
    of the acquired entities have been proportionately consolidated in the income
    statement from the date of acquisition.
From the date of acquisition, the acquired part of the entity contributed a loss
of £30 million to the
net loss of the Group.
On 20 April 2006, the Group completed the compulsory acquisition of the remaining
minority shareholdings in VenFin, from which date the Group holds 100% of the
issued share capital of VenFin. As a result, the Group holds 50% of the share
capital of Vodacom.
Across the acquisitions mentioned above, the weighted average life of licences
and spectrum fees is 10 years, the weighted average life of other intangible
assets is five years and
the weighted average of total intangibles is eight years.
Turkey – Telsim Mobil Telekomunikasyon
On 24 May 2006,
the Group completed the acquisition of substantially all the assets and business
of Telsim Mobil Telekomunikasyon ("Telsim") from the Turkish Savings Deposit
and Investment Fund. The cash paid on this date was US$4.67 billion (£2.6
billion). It is impracticable to provide further information due to the proximity
of the acquisition date to the date of approval of the Consolidated Financial
Statements.
Pro forma full year information
The following unaudited pro forma summary presents the Group as if all of the businesses acquired in the year to 31 March 2006 had been acquired on 1 April 2005 or 1 April 2004,
respectively. The pro forma amounts include the results of the acquired companies, amortisation of the acquired intangibles assets recognised on acquisition and the interest expense on debt incurred as a result of the acquisition. The pro forma
amounts do not include any possible synergies from the acquisition. The pro forma information is provided for comparative purposes only and does not necessarily reflect the actual results that would have occurred, nor is it necessarily indicative of
future results of operations of the combined companies.
2006
2005
£m
£m
Revenue
29,924
27,709
(Loss) /profit for the financial year
(21,870
)
6,239
(Loss) /profit attributable to equity shareholders
(21,966
)
6,131
Pence per share
Pence per share
Basic (loss)/earnings per share from continuing and discontinued operations
(35.09
)
9.26
Diluted (loss)/earnings per share from continuing and discontinued operations
(1)
(35.09
)
9.23
Note:
(1)
In
          the year ended 31 March 2006, there are no dilutive ordinary shares
    as the Group recorded a loss for the financial year.
Vodafone
            Group Plc
Annual Report 2006
113
Back to Contents
Notes to the Consolidated Financial Statements
continued
29.   Discontinued operations and disposals
Japan – Vodafone
K.K.
On
17 March 2006, the Group announced an agreement to sell its 97.7% holding in
Vodafone
K.K. to SoftBank. The transaction completed on 27 April 2006 with the Group receiving
cash of
approximately ¥1.42 trillion (£6.9 billion) including the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion). In addition, the Group received non-cash consideration with a fair value of approximately ¥0.23
trillion (£1.1 billion), comprised of preferred equity and a subordinated loan. SoftBank also assumed debt of approximately ¥0.13 trillion (£0.6
billion). Vodafone K.K. represented a separate geographical area of operation.
On this
basis, Vodafone K.K. has been treated as a discontinued operation.
Income
    statement and segment analysis of discontinued operation
2006
2005
£m
£m
Service revenue
5,264
5,610
Equipment and other revenue
2,004
1,786
Segment revenue
7,268
7,396
Inter-segment revenue
(2
)
(1
)
Net revenue
7,266
7,395
Operating expenses
(5,667
)
(5,417
)
Depreciation and amortisation
(1)
(1,144
)
(1,314
)
Impairment loss
(4,900
)
–
Operating (loss)/profit
(4,445
)
664
Non operating income and
        expense
–
13
Net financing costs
(3
)
(11
)
(Loss)/profit before taxation
(4,448
)
666
Taxation relating to performance
        of discontinued operations
7
436
Taxation relating to the
        classification of the discontinued operations
(147
)
–
(Loss)/profit for the financial
        year from discontinued operations
(4,588
)
1,102
(Loss)/earnings per share from discontinued operations
2006
2005
Pence per share
Pence per share
Basic (loss)/earnings per share
(7.35
)
1.56
Diluted (loss)/earnings per share
(7.35
)
1.56
Note:
(1)
including
    gains and losses on disposal of fixed assets
Assets
  and liabilities of disposal group at 31 March 2006
2006
£m
Intangible
      assets
3,957
Property,
      plant and equipment
4,546
Other
      investments
29
Cash
      and cash equivalents
161
Inventory
131
Trade
      and other receivables
1,113
Deferred
      tax asset
655
Total
      assets
10,592
Current
      taxation liability
(1
)
Short
      and long-term borrowings
(677
)
Trade
      and other payables
(1,579
)
Deferred
      tax liabilities
(246
)
Other
      liabilities
(40
)
Total
      liabilities
(2,543
)
114
Vodafone
            Group Plc
Annual Report 2006
Back to Contents
Financials
Cash flows from discontinued operations
2006
2005
£m
£m
Net cash flows from operating activities
1,651
1,739
Net cash flows from investing activities
(939
)
(448
)
Net cash flows from financing activities
(536
)
(1,289
)
Net increase in cash and cash equivalents
176
2
Cash and cash equivalents at the beginning of the financial year
4
3
Exchange loss on cash and cash equivalents
(19
)
(1
)
Cash and cash equivalents at the end of the financial year
161
4
Sweden – Europolitan Vodafone AB
On 5 January 2006, the Group completed the disposal of its 100% interest in Europolitan Vodafone AB to Telenor Mobile Holding AS. The assets and liabilities of Europolitan Vodafone AB
at the date of disposal, and the cash effects of the transaction, were as follows:
£m
Intangible assets
171
Property, plant and equipment
581
Inventory
10
Trade and other receivables
155
Cash and cash equivalents
(5
)
Deferred tax liabilities
(77
)
Short and long term borrowings
(20
)
Trade and other payables
(157
)
Net assets disposed of
658
Total cash consideration
653
Other effects
(1)
8
Net gain on disposal
3
Net cash inflow arising on disposal:
Cash consideration
653
Cash and cash equivalents disposed of
5
658
Note:
(1)
Other
        effects include the recycling of currency translation on disposal and
    professional fees related to the disposal.
Vodafone
            Group Plc
Annual Report 2006
115
Back to Contents
Notes to the Consolidated Financial Statements
continued
30.   Commitments
Operating lease commitments
The Group has entered into commercial leases on certain properties, network infrastructure, motor vehicles and items of machinery. The leases have various terms, escalation clauses,
purchase options and renewal rights.
Future minimum lease payments under non-cancellable operating leases comprise:
2006
2005
£m
£m
Within one year
654
662
In more than one year but less than two years
509
456
In more than two years but less than three years
447
403
In more than three years but less than four years
397
351
In more than four years but less than five years
345
305
In more than five years
1,292
1,170
3,644
3,347
In addition to the
amounts disclosed above as at 31 March 2006, there were additional operating
lease commitments of £120 million relating to the Group's discontinued
operations in Japan, which were sold on 27 April 2006.
The total of future
minimum sublease payments expected to be received under non-cancellable subleases
is £60 million (2005: £51 million).
Capital and other financial commitments
Group
Share of joint ventures
2006
2005
2006
2005
£m
£m
£m
£m
Contracts placed for future capital expenditure not provided in the financial statements:
(1)(2)
651
656
162
121
Purchase commitments
(2)
996
1,201
163
80
Share purchase programme
–
565
–
–
Purchase of MobiFon and Oskar
–
1,858
–
–
Purchase of Telsim
(3)
2,600
–
–
–
4,247
4,280
325
201
Notes:
(1)
Commitment includes contracts placed for property, plant and equipment and intangible assets.
(2)
In addition to the amounts disclosed above as at 31 March 2006, there were additional commitments of £90 million for future capital expenditure and
£368 million other purchase commitments relating to the Group's discontinued operations in Japan, which were sold on 27 April 2006.
(3)
In addition to the consideration price of $4.67 billion (approximately £2.6 billion), the Group will be required to pay approximately $0.4 billion of VAT
which will be recoverable against Telsim's future VAT liabilities. The Group expects to recover this payment over the short to medium term.
116
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
31.   Contingent
liabilities
2006
2005
£m
£m
Performance bonds
189
382
Credit guarantees – third party indebtedness
64
67
Other guarantees and contingent liabilities
19
18
Performance bonds
Performance bonds require the Group to make payments to third parties in the event that the Group does not perform what is expected of it under the terms of any related
  contracts.
Group performance
bonds include £152 million (2005: £149 million) in respect of undertakings to roll out 3G networks in Spain and £nil (2005: £189 million) in
respect of undertakings to roll out 2G and 3G networks in Germany
.
Credit guarantees – third party indebtedness
Credit guarantees
comprise guarantees and indemnities of bank or other facilities including those
in respect of the Group's associated undertakings and investments.
Other guarantees and contingent liabilities
Other guarantees principally comprise commitments to support disposed entities.
In addition to the amounts disclosed above, the Group has guaranteed financial indebtedness and issued performance bonds for £33 million (2005: £36 million) in respect of
businesses which have been sold and for which counter indemnities have been received from the purchasers.
The Group also enters into lease arrangements in the normal course of business, which are principally in respect of land, buildings and equipment. Further details on the minimum lease
payments due under non-cancellable operating lease arrangements can be found in note 30.
Legal proceedings
The Company and its subsidiaries are currently, and may be from time to time, involved in a number of legal proceedings, including inquiries from or discussions with governmental
authorities, that are incidental to their operations. However, save as disclosed below, the Company and its subsidiaries are not involved currently in any legal or arbitration proceedings (including any governmental proceedings which are pending or
known to be contemplated) which may have, or have had in the twelve months preceding the date of this report, a significant effect on the financial position or profitability of the Company and its subsidiaries.
The Company is a defendant in four actions in the United States alleging personal injury, including brain cancer, from mobile phone use. In each case, various other carriers and
mobile phone manufacturers are also named as defendants. These actions are at an early stage and no accurate quantification of any losses which may arise out of the claims can therefore be made as at the date of this report. The Company is not aware
that the health risks alleged in such personal injury claims have been substantiated and will be vigorously defending such claims.
In 2002, a class action
lawsuit was brought in the United States District Court for the Southern District
of New York against the Company and certain of its officers and directors under
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder alleging principally that Vodafone had improperly delayed taking and
disclosing goodwill impairment losses relating to certain fixed line and
non-controlled mobile assets that Vodafone reported in the financial year ended
31 March 2002. Vodafone firmly denied any wrongdoing and believes the allegations
are wholly without merit. On 4 March 2005, the parties entered into a definitive
settlement agreement for a cash payment by Vodafone and its insurance carriers
of $24.5 million, before fees and expenses, which was approved by the Court on
15 July 2005. The settlement, which covers all current and former defendants,
does not
involve any admission or evidence of wrongdoing by any of them. The plaintiffs' application for reimbursement of costs and an award of attorneys' fees
to be paid form the settlement fund remains pending.
A
      subsidiary of the Company, Vodafone 2, is responding to an enquiry ("the Vodafone 2 enquiry") by the UK Inland Revenue (now called "Her Majesty's Revenue and
  Customs" and hereinafter referred to as "HMRC") with regard to the UK tax treatment of its Luxembourg holding company, Vodafone Investments Luxembourg SARL ("VIL"), under the Controlled Foreign Companies section of the
  UK's Income and Corporation Taxes Act 1988 ("the CFC Regime") relating to the tax treatment of profits earned by the holding company for the accounting period ended 31 March 2001. Vodafone 2's
  position is that it is not liable to corporation tax in the UK under the CFC
  Regime in respect of VIL.
Vodafone
2 asserts, inter alia, that the CFC Regime is contrary to EU law and has made
an application
to the Special Commissioners of HMRC for closure of the Vodafone 2 enquiry. On
3 May 2005, the Special Commissioners referred certain questions relating to
the compatability of the CFC Regime with EU law to the European Court of Justice
(the "ECJ") for determination. Vodafone 2's application for closure has been
stayed pending delivery of the ECJ's judgment. In its judgement, the ECJ will only determine questions referred to it and does not have jurisdiction to determine the outcome of Vodafone 2's application. Instead, the Special Commissioners
will apply the ECJ's judgement to the particular facts of Vodafone 2's application. Although it is not possible to address all possible outcomes, it should be noted that even if the CFC Regime is held by the ECJ to be entirely lawful,
Vodafone 2 would continue to resist the imposition of corporation tax liability on other grounds. On 15 June 2005, HMRC appealed to the High Court challenging the Special Commissioners' decision to refer questions to the ECJ. This appeal was
dismissed and HMRC has since appealed this dismissal to the Court of Appeal. A decision in the latter appeal is expected to be rendered in the second half of 2006. In addition to the Vodafone 2 enquiry, on 31 October 2005, HMRC commenced an enquiry
into the residence of VIL which is ongoing (the "VIL enquiry"). VIL's position is that it is resident for tax purposes solely in Luxembourg and therefore it is not liable for corporation tax in the UK. The Company has taken
provisions, which at 31 March 2006 amounted to £2,098 million, for the
potential UK corporation tax liability and related interest expense that may
arise in connection with the Vodafone 2 and VIL enquiries, if the Company is
not successful in its challenge of the CFC Regime. The provisions relate to the
accounting period which is the subject of the proceedings described above as
well as to accounting periods after 31 March 2001 to date.
The judgement of the ECJ is expected to be delivered at the beginning of 2007 at the earliest. In the absence of any material unexpected developments, the provisions are likely to be
reassessed when the views of the ECJ become known.
Vodafone
    Group Plc
Annual Report 2006
117
Back to Contents
Notes to the Consolidated Financial Statements
continued
32.   Reconciliation
of net cash flows to operating activities
2006
2005
£m
£m
(Loss)/profit for the financial year from continuing operations
(17,233
)
5,416
(Loss)/profit for the financial year from discontinued operations
(4,588
)
1,102
Adjustments for
(1)
:
Tax on profit
2,520
1,433
Depreciation and amortisation
5,834
5,517
Loss on disposal of property, plant and equipment
88
162
Non operating income and expense
2
(6
)
Other income and expense
(15)
–
Investment income
(353
)
(303
)
Financing costs
1,123
900
Impairment losses
28,415
475
Share of result in associated undertakings
(2,428
)
(1,980
)
Operating cash flows before movements in working capital
13,365
12,716
Decrease in inventory
23
17
Decrease/(increase) in trade and other receivables
54
(321
)
Increase in payables
81
145
Cash generated by operations
13,523
12,557
Tax paid
(1,682
)
(1,578
)
Net cash flows from operating activities
11,841
10,979
Note:
(1)
Adjustments
          include
amounts relating to continuing and discontinued operations.
33.   Directors
    and key management compensation
Directors
Aggregate emoluments of the directors of the Company were as follows:
2006
2005
£m
£m
Salaries and fees
6
6
Incentive schemes
5
4
Benefits
2
1
13
11
The aggregate
  gross pre-tax gain made on the exercise of share options in the year ended
  31 March 2006 by directors who served during the year was less than £1 million (2005:
£3 million).
Further details of
directors' emoluments can be found in "Board's Report to Shareholders on Directors' Remuneration – Remuneration for the year to 31 March
2006" on pages 61 to 69.
Key management compensation
Aggregate compensation for key management, being the directors and members of the Group Executive Committee, were as follows:
2006
2005
£m
£m
Short term employee benefits
26
18
Post-employment benefits:
Defined benefit schemes
2
2
Defined contribution schemes
2
1
Share-based payments
16
22
46
43
118
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
34.   Employees
An analysis of the average employee headcount by category of activity is shown below.
2006
2005
Number
Number
By
      activity:
Operations
12,541
11,923
Selling
      and distribution
17,315
16,410
Administration
31,816
29,426
61,672
57,759
By
      segment:
Mobile
      telecommunications:
Germany
10,124
10,183
Italy
7,123
7,213
Spain
4,052
3,949
UK
10,620
11,260
Other
      Mobile Operations
22,895
18,858
Common
      functions
2,628
2,201
57,442
53,664
Other
      operations:
Germany
4,086
4,095
Other
144
–
4,230
4,095
Total
      continuing operations
61,672
57,759
Discontinued
      operations:
Japan
2,733
3,033
The cost incurred in respect of these employees (including directors) was:
(1)
2006
2005
£m
£m
Continuing
           operations:
Wages
           and salaries
1,879
1,752
Social
           security costs
242
233
Share
           based payments
109
130
Other
           pension costs (see note 25)
80
70
2,310
2,185
Note:
(1)
From continuing operations. The cost incurred in respect of employees (including directors) from discontinued operations was £155 million (2005: £191
    million).
35.   Subsequent
      events
On
        17 March 2006, the Group announced an agreement to sell its 97.7% holding
        in Vodafone Japan to SoftBank. The transaction completed on 27 April 2006,
        with the Group receiving cash of approximately ¥1.42 trillion (£6.9
        billion) including the repayment of intercompany debt of ¥0.16 trillion
        (£0.8 billion). In addition, the Group received non-cash consideration
        with a fair value of approximately ¥0.23 trillion (£1.1 billion),
        comprised of preferred equity and a subordinated loan. SoftBank also assumed
  debt of approximately ¥0.13 trillion (£0.6 billion).
On
        13 December 2005, the Group announced it had agreed to acquire substantially
        all the assets and business of Telsim Mobil Telekomunikasyon ("Telsim")
        from the Turkish Savings Deposit and Investment Fund. The acquisition completed
        on 24 May 2006. The cash paid on this date was US$4.67 billion (£2.6
      billion).
Vodafone
              Group Plc
Annual Report 2006
119
Back to Contents
Notes
    to the Consolidated Financial Statements
continued
36.   Related
    party transactions
Transactions
    with joint ventures and associated undertakings
Transactions
    between the Company and its subsidiaries, joint ventures and associates represent
    related party transactions. Transactions with subsidiaries have been eliminated
    on consolidation. Transactions between the Company and its joint ventures
    are not material to the extent that they have not been eliminated through
    proportionate consolidation. Except as disclosed below, no material related
    party transactions have been entered into, during the year, which might reasonably
    affect any decisions made by the users of these Consolidated Financial Statements.
2006
2005
£m
£m
Transactions
        with associated undertakings:
Sales
        of goods and services
288
194
Purchase
        of goods and services
268
243
Amounts
        owed to joint ventures included within short term borrowings
(1)
378
1,142
Note:
(1)
Loan
        arises through Vodafone Italy being part of a Group cash pooling arrangement.
        Interest is paid in line with short term market rates.
Amounts owed by and owed to associated undertakings are disclosed within notes 17 and 27.
Dividends received from associated undertakings are disclosed in the consolidated cash flow statement.
Group contributions to pension schemes are disclosed in note 25.
Compensation paid to the Company's Board of directors and members of the Executive Committee is disclosed in note 33.
Transactions
        with directors
During the year ended 31 March 2006, and as of 26 May 2006, neither any director nor any other executive officer, nor any associate of any director or any other executive officer, was
        indebted to the Company.
Since 1 April 2005, the Company has not been, and is not now, a party to any other material transaction, or proposed transactions, in which any member of the key management personnel
        (including directors, any other executive officer, senior manager, any spouse or relative of any of the foregoing, or any relative of such spouse), had or was to have a direct or indirect material interest.
37.   Financial information of joint ventures and associated undertakings
Summary aggregated financial information of 50% or less owned entities accounted for using proportionate consolidation or under the equity method, extracted on a 100% basis from
        accounts prepared under IFRS at 31 March and for the years then ended, is set out below.
2006
2005
Entities
        classified as associated undertakings
£m
£m
Revenue
30,204
25,141
Gross
        profit
12,506
12,358
Profit
        for the financial year
5,768
4,883
Non-current
        assets
42,776
36,385
Current
        assets
5,868
5,763
Total
        assets
48,644
42,148
Current
        liabilities
8,365
11,475
Non-current
        liabilities
9,367
5,579
Total
        liabilities
17,732
17,054
Total
        equity shareholders' funds
29,951
24,155
Minority
        interests
961
939
Total
        equity and liabilities
48,644
42,148
120
Vodafone
                  Group Plc
Annual Report 2006
Back to Contents
Financials
2006
2005
Entities
        classified as joint ventures
£m
£m
Revenue
4,919
3,946
Gross
        profit
2,071
1,611
Profit
        for the financial year
786
658
Non-current
        assets
7,631
2,983
Current
        assets
1,389
1,056
Total
        assets
9,020
4,039
Current
        liabilities
2,384
1,458
Non-current
        liabilities
1,164
362
Total
        liabilities
3,548
1,820
Total
        equity shareholders' funds
5,432
2,207
Minority
        interests
40
12
Total
        equity and liabilities
9,020
4,039
Summary aggregated financial information of Vodafone Omnitel N.V., extracted on a 100% basis from financial statements prepared under IFRS at 31 March and for the years then ended, is
    set out below.
2006
2005
£m
£m
Revenue
5,619
5,518
Gross
        profit
2,995
2,779
(Loss)/profit
        for the financial year
(2,134
)
1,507
Non-current
        assets
20,280
24,186
Current
        assets
2,837
6,117
Total
        assets
23,117
30,303
Current
        liabilities
1,915
1,719
Non-current
        liabilities
78
312
Total
        liabilities
1,993
2,031
Total
        equity shareholders' funds
21,124
28,272
Total
        equity and liabilities
23,117
30,303
Vodafone
                      Group Plc
Annual Report 2006
121
Back to Contents
Notes
to the Consolidated Financial Statements
continued
38.
US
    GAAP information
The
        following is a summary of the effects of the differences between US GAAP
        and IFRS. The unaudited translation of pounds sterling amounts into US
        dollars is provided solely for convenience based on the Noon Buying Rate
        on 31 March 2006 of $1.7393: £1. Amounts at 31 March 2005 and for
        the year then ended have been restated to give effect to the modified
        retrospective adoption of SFAS No. 123 (Revised 2004), discussed in (j)
    below.
Net loss for the years ended 31 March
2006
2006
2005
Restated
Reference
$m
£m
£m
Revenue (IFRS)
51,048
29,350
26,678
Items (decreasing)/increasing revenues:
Discontinued operations
(1,642
)
(944
)
(1,108
)
Basis of consolidation
a
(10,011
)
(5,756
)
(5,423
)
Connection revenue
b
1,924
1,106
1,223
Revenue (US GAAP)
41,319
23,756
21,370
(Loss)/profit for the financial year (IFRS)
(37,953
)
(21,821
)
6,518
Items (increasing)/decreasing net loss:
Investments accounted for under the equity method
c
(2,139
)
(1,230
)
(5,440
)
Connection revenue and costs
b
17
10
16
Goodwill and other intangible assets
d
(24,870
)
(14,299
)
(15,534
)
Impairment losses
e
26,745
15,377
475
Amortisation of capitalised interest
f
(188
)
(108
)
(105
)
Interest capitalised during the year
f
63
36
19
Other
g
(74
)
(42
)
99
Income taxes
h
15,483
8,902
6,680
Minority interests
i
(165
)
(95
)
(108
)
Cumulative effect of change in accounting principle: post employment benefits
j
–
–
(195
)
Cumulative effect of change in accounting principle: intangible assets
j
–
–
(6,177
)
Net loss (US GAAP)
(23,081
)
(13,270
)
(13,752
)
Shareholders' equity
at 31 March
2006
2006
2005
Restated
Reference
$m
£m
£m
Total equity (IFRS)
148,383
85,312
113,648
Items (decreasing)/increasing shareholders' funds:
Investments accounted for under the equity method
c
(3,978
)
(2,287
)
(982
)
Connection revenue and costs
b
(9
)
(5
)
(14
)
Goodwill and other intangible assets
d
56,618
32,552
31,714
Capitalised interest
f
2,510
1,443
1,529
Other
g
365
210
104
Income taxes
h
(52,795
)
(30,354
)
(38,856
)
Minority interests
i
197
113
152
Shareholders' equity (US GAAP)
151,291
86,984
107,295
122
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
US GAAP condensed
consolidated statement of operations
2006
2006
2005
Restated
Reference
$m
£m
£m
Revenue
41,319
23,756
21,370
Cost of sales
(48,920
)
(28,126
)
(27,803
)
Selling, general and administrative expense
(7,552
)
(4,342
)
(3,779
)
Operating loss
(15,153
)
(8,712
)
(10,212
)
Share of results in investments accounted for under the equity method
(1,816
)
(1,044
)
(2,179
)
Non-operating income and expense
(1,151
)
(662
)
(465
)
Loss before income taxes
(18,120
)
(10,418
)
(12,856
)
Income tax benefit
5,614
3,228
4,994
Minority interests
(170
)
(98
)
(108
)
Loss from continuing operations
(12,676
)
(7,288
)
(7,970
)
Discontinued operations, net of taxes
(10,405
)
(5,982
)
590
Cumulative effect of changes in accounting principles, net of taxes
–
–
(6,372
)
Net loss
(23,081
)
(13,270
)
(13,752
)
Basic and diluted loss per share:
Cents
Pence
Pence
Loss from continuing operations
(20.25
)
(11.64
)
(12.03
)
Discontinued operations
(16.62
)
(9.56
)
0.89
Cumulative effect of changes in accounting principles
–
–
(9.63
)
Net loss
k
(36.87
)
(21.20
)
(20.77
)
Discontinued operations
As discussed in note 29, the Group disposed of its interests in Vodafone Sweden during the year ended 31 March 2006. Vodafone Sweden has been classified as discontinued under US GAAP.
Summary of differences between IFRS and US GAAP
The Consolidated Financial Statements are prepared in accordance with IFRS, which differ in certain material respects from US GAAP. The differences that are material to the Group
relate to the following:
a.   Basis
of consolidation
The
basis of consolidation under IFRS differs from that under US GAAP. The Group
has interests in several
jointly controlled entities, the most significant being Vodafone Italy. Under
IFRS, the Group reports its interests in jointly controlled entities using proportionate
consolidation. The Group's share of the assets, liabilities, income, expenses and cash flows of jointly controlled entities are combined with the
equivalent items in the Consolidated Financial Statements on a line-by-line basis. Under US GAAP, the results and assets and liabilities of jointly controlled entities are incorporated in the Consolidated Financial Statements using the equity method
of accounting. Under the equity method, investments in jointly controlled entities are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Group's share of the net assets of the jointly controlled
entity, less any impairment in the value of the investment. The Group's
share of the assets, liabilities, income and expenses of jointly controlled entities
which are included in the Consolidated Financial Statements are reported in note
13.
b.   Connection
revenues and costs
Under IFRS and, for transactions subsequent to 30 September 2003, under US GAAP, customer connection revenue is recognised together with the related equipment revenue to the extent
that the aggregate equipment and connection revenue does not exceed the fair value of the equipment delivered to the customer. Any customer connection revenue not recognised together with related equipment revenue is deferred and recognised over the
period in which services are expected to be provided to the customer.
For transactions prior to 1 October 2003, connection revenue under US GAAP is recognised over the period that a customer is expected to remain connected to a network. Connection costs
directly attributable to the income deferred are recognised over the same period. Where connection costs exceed connection revenue, the excess costs were charged in the statement of operations immediately upon connection. The balances of deferred
revenue and deferred charges as of 30 September 2003 continue to be recognised over the period that a customer is expected to remain connected to a network.
c.   Investments
accounted for under the equity method
This
line item includes the net effect of IFRS to US GAAP adjustments affecting net
loss and shareholders' equity
related to investments accounted for under the equity method, other than the
cumulative effect of change in accounting principle related to intangible assets,
which has been disclosed separately. The differences are:
Adjustment to the share of results in investments accounted for under the equity method
2006
2005
£m
£m
Goodwill
       and other intangible assets associated with investments accounted for
    under the equity method
(7,772
)
(8,864
)
Impairment loss
3,600
–
Income taxes
2,863
3,362
Other
79
62
Total
(1,230
)
(5,440
)
Adjustments
to the carrying value of investments accounted for under the equity method
2006
2005
£m
£m
Goodwill
          and other intangible assets associated with investments accounted for
          under the equity method
9,539
13,549
Income
        taxes
(11,997
)
(14,615
)
Other
171
84
Total
(2,287
)
(982
)
Vodafone
            Group Plc
Annual Report 2006
123
Back to Contents
Notes
to the Consolidated Financial Statements
continued
38.
US
    GAAP information
continued
d.
Goodwill
    and other intangible assets
The
        differences related to goodwill and other intangible assets included
        in the reconciliations of net loss and shareholders' equity relate
        to acquisitions prior to the
Group's adoption of SEC guidance issued on 29 September 2004. In determining
the value of licences purchased in business combinations prior to 29 September
2004, the Group allocated the portion of the purchase price, in excess of the
fair value attributed to the share of net assets acquired, to licences. The Group
had previously concluded that the nature of the licences and the related goodwill
acquired in business combinations was fundamentally indistinguishable.
Following the adoption of the SEC guidance issued on 29 September 2004, the Group's US GAAP accounting policy for initial and subsequent measurement of goodwill and other
intangible assets, other than determination of impairment of goodwill and finite lived intangible assets, is substantially aligned to that of IFRS described in note 2. However, there are substantial adjustments arising prior to 29 September 2004 from different methods of transition to current IFRS and US GAAP as discussed below.
Goodwill arising before the date of transition to IFRS has been retained under IFRS at the previous UK GAAP amounts for acquisitions prior to 1 April 2004. The Group has assigned
amounts to licences and customer bases under US GAAP as they meet the criteria for recognition separately from goodwill, while these had not been recognised separately from goodwill under UK GAAP because they did not meet the recognition criteria.
Under US GAAP, goodwill and other intangible assets with indefinite lives are capitalised and not amortised, but tested for impairment at least annually. Intangible assets with finite lives are capitalised and amortised over their useful economic
lives.
Under IFRS and US GAAP, the purchase price of a transaction accounted for as an acquisition is based on the fair value of the consideration. In the case of share consideration, under
IFRS the fair value of such consideration is based on the share price on the date of exchange. Under US GAAP, the fair value of the share consideration is based on the average share price over a reasonable period of time before and after the
proposed acquisition is agreed to and announced. This has resulted in a difference in the fair value of the consideration for certain acquisitions and consequently in the amount of goodwill capitalised under IFRS and US GAAP.
The Group's accounting policy for testing goodwill and finite lived intangible assets for impairment under IFRS is discussed in note 2. For the purpose of goodwill impairment
testing under US GAAP, the fair value of a reporting unit including goodwill is compared to its carrying value. If the fair value of a reporting unit is lower than its carrying value, the fair value of the goodwill within that reporting unit is
compared to its respective carrying value, with any excess carrying value written off as an impairment loss. The fair value of the goodwill is the difference between the fair value of the reporting unit and the fair value of the identifiable net
assets of the reporting unit. Intangible assets with finite lives are subject to periodic impairment tests when circumstances indicate that an impairment loss may exist. Where an asset's (or asset group's) carrying amount exceeds its sum
of undiscounted future cash flows, an impairment loss is recognised in an amount equal to the amount by which the asset's (or asset group's) carrying amount exceeds its fair value, which is generally based on discounted cash flows.
As a result of the above, there are significant amounts reported as goodwill and not amortised under IFRS which are reported as licences, customers and deferred tax liabilities under
US GAAP.
During the year ended 31 March 2005, the Group undertook a number of transactions, including a stake increase in Vodafone Hungary. Under US GAAP, these transactions have resulted in
the Group assigning £65 million to intangible assets, of which £21 million was assigned to cellular licences and £20 million to customer bases. A corresponding deferred tax liability of £8 million was recognised. All
intangible assets acquired, other than goodwill, are deemed to be of finite life, with a weighted average amortisation period of 8 years, comprising licences of 10 years and customer bases of 5 years.
Finite-lived intangible assets
2006
2005
Licences
£m
£m
Gross carrying value
154,135
152,831
Accumulated amortisation
(75,170
)
(61,188
)
78,965
91,643
Customer bases
Gross carrying value
1,663
5,952
Accumulated amortisation
(1,071
)
(5,333
)
592
619
The total amortisation charge for the year ended 31 March 2006, under US GAAP, was £15,011 million (2005: £15,400 million). The estimated future amortisation charge on
finite-lived intangible assets for each of the next five years is set out in the following table. The estimate is based on finite-lived intangible assets recognised at 31 March 2006 using foreign exchange rates on that date. It is likely that future
amortisation charges will vary from the figures below, as the estimate does not include the impact of any future investments, disposals, capital expenditures or fluctuations in foreign exchange rates.
Year ending 31 March
£m
2007
15,448
2008
15,362
2009
15,264
2010
12,367
2011
3,754
e.   Impairment
losses
As
discussed in note 10, during the year ended 31 March 2006, the Group recorded
impairment losses
of £23,000 million in relation to the goodwill of Vodafone Germany and
Vodafone Italy under IFRS. Under US GAAP, the Group evaluated the recoverability of the long-lived assets, comprised primarily of licences, in Vodafone Germany and Vodafone Italy using undiscounted cash flows and determined that the carrying amount
of these assets was recoverable. As a result, the IFRS impairment losses of £23,000
million related to Vodafone Germany and Vodafone Italy were not recognised under
US GAAP.
During the year ended
31 March 2006, the Group also recorded an impairment loss under IFRS of £515 million and £4,900 million in relation to the goodwill of Vodafone
Sweden and Vodafone Japan, respectively. Under US GAAP, the Group recognised impairment losses of licences of £883 million and £8,556 million in Vodafone Sweden and in Vodafone Japan. As a result of these impairment losses, the Group
released related deferred tax liabilities of £247 million and £3,508 million, which have been included in the adjustment for income taxes. The impairment losses on Vodafone Sweden's and Vodafone Japan's
licences have been
included in discontinued operations under US GAAP.
Cumulative cumulative foreign currency gains and losses arising on the translation of the assets and liabilities into sterling have been included in the carrying value of a
discontinued operation when assessing that carrying value for impairment.
f.   Capitalised
interest
Under IFRS, the Group has adopted the benchmark accounting treatment for borrowing costs and, as a result, the Group does not capitalise interest costs on borrowings in respect of the
acquisition or construction of tangible and intangible fixed assets. Under US GAAP, the interest costs of financing the acquisition or construction of network assets and other fixed assets is capitalised during the period of construction until the
date that the asset is placed in service. Interest costs of financing the acquisition of licences are also capitalised until the date that the related network service is launched. Capitalised interest costs are amortised over the estimated useful
lives of the related assets.
g.   Other
Financial instruments
Under IFRS, the equity put rights and similar arrangements are classified as financial liabilities. The liabilities are measured as the present value of the estimated exercise prices
of the equity put rights and similar arrangements, which is the fair value of the underlying shares on the date of exercise, with any changes in this estimate recognised in the consolidated income statement each period. Under US GAAP, these equity
put rights and similar arrangements are generally classified as derivative instruments. Consequently, this financial liability is eliminated for US GAAP purposes and the equity put rights and similar arrangements are accounted for at fair value.
Pensions
Under both IFRS and US GAAP, the Group recognises actuarial gains and losses as they are incurred. Under IFRS, these gains and losses are recognised directly in equity. These gains
and losses are included in the determination of net loss under US GAAP.
Other recognised income and expense
Under both IFRS and US GAAP, the cumulative foreign currency gains and losses arising on the translation of the assets and liabilities of entities with a functional currency other
than sterling are reclassified from accumulated other recognised income and expense and included in the determination of profit for the period or net loss on sale or liquidation of a foreign entity. Differences in the amount reclassified arise due
to differences in the carrying values of the underlying net assets and because the Group deemed the cumulative translation differences at the date of transition to IFRS to be zero.
124
Vodafone
    Group Plc
Annual Report 2006
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Financials
During the
  year ended 31 March 2006, £9 million of foreign currency losses were reclassified from other recognised income and expense and included in the determination of US
GAAP net loss as a result of the disposal of Vodafone Sweden. During the year ended 31 March 2005, £63 million of foreign currency losses were reclassified from other recognised income and expense and included in the determination of US GAAP
net loss as a result of the partial disposal of Vodafone Egypt. Under IFRS, these gains amounted to £36
million for the year ended 31 March 2006.
h.   Income taxes
The
most significant component of the income tax adjustment is due to temporary differences
between the book basis and tax basis of intangible assets other than goodwill
acquired in business combinations prior to 29 September 2004, resulting in the
recognition of deferred tax liabilities under US GAAP. This line item also includes
the tax effects of the other pre-tax IFRS to US GAAP adjustments described above.
Under IFRS, the Group does not recognise a deferred tax liability on the outside
basis differences in its investment in associates to the extent that the Group
controls the timing of the reversal of the difference and it is probable the
difference will not reverse in the foreseeable future. Under US GAAP, the Group
recognises deferred tax liabilities on these differences.
i.   Minority interests
Minority
interests are reported as a component of total equity under IFRS and, accordingly,
profit for the period does not include an adjustment for profit for the period
attributable to minority interests. Under US GAAP, minority interests are reported
outside
of shareholders' equity and the minority interest in the income of consolidated
subsidiaries is an adjustment to US GAAP net income.
j.   Changes
    in accounting principles
Post
employment benefits
During
the second half of the year ended 31 March 2005, the Group amended its policy
for accounting for actuarial gains and losses arising from its pension obligations
effective 1 April 2004. Until 31 March 2004, the Group used a corridor approach
under SFAS
No. 87, "Employers' Accounting for Pensions" in which actuarial
gains and losses were deferred and amortised over the expected remaining service
period of the employees. The Group now recognises these gains and losses through
the income statement in the period in which they arise as the new policy more
faithfully represents the Group's financial position and more closely aligns
the Group's US GAAP policy to its IFRS policy of immediate recognition of
these items.
The cumulative effect
on periods prior to adoption of £288 million has been shown, net of tax
of £93 million, as a cumulative effect of a change in accounting principle
in the reconciliation of net loss. The effect of the change in the year ended
31 March 2005 was to increase loss from continuing operations by £55 million
(or 0.08 pence per share).
Intangible assets
On
29 September 2004, the SEC Staff issued new guidance on the interpretation of
SFAS No. 142 in relation to the valuation of intangible assets in business combinations
and impairment testing. This guidance has been codified as EITF Topic D-108.
Historically, the Group assigned to mobile licences the residual purchase price
in business combinations in excess of the fair values of all assets and liabilities
acquired other than mobile licences and goodwill. This approach was on the basis
that mobile licences were indistinguishable from goodwill. The new SEC guidance
requires the Group to distinguish between mobile licences and goodwill. However,
the new guidance does not permit the amount historically reported as mobile licences
to be subsequently reallocated between mobile licences and goodwill.
The new guidance will affect the allocation of the purchase price in future business
combinations involving entities with mobile licences. The Group has applied the
guidance relating to the allocation of purchase price to all business combinations
consummated subsequent to 29 September 2004. This has resulted in values being
assigned to licences using a direct valuation method, with any remaining residual
purchase price
allocated to goodwill.
In impairment testing of mobile licences associated with the Verizon Wireless
equity method investment accounted for under SFAS No. 142, the Group has used
a similar residual approach to determine the fair value of the licences when
testing the asset for recoverability. In their announcement, the SEC Staff stated
that the residual method of accounting for intangible assets should no longer
be used and that companies should perform an impairment test using a direct method
on all assets which were previously
tested using a residual method. The Group's licences in other businesses
are not tested for recoverability using a residual method and are, therefore,
not
affected by the new guidance.
The Group completed
its transitional impairment test of Verizon Wireless' mobile licences as
of 1 January 2005. This resulted in a pre-tax charge of £11,416 million.
This
impairment loss is included, net of the related tax of £5,239 million,
in the cumulative effect of change in accounting principle in the reconciliation
of net loss. The tax effect comprises the release of £1,220 million representing
the
Group's share of Verizon Wireless' deferred tax liabilities and £4,019
million deferred tax liabilities representing taxes recognised by the Group on
its investment in Verizon Wireless. Fair value was determined as the present
value of estimated future net cash flows allocable to the mobile licences. Verizon
Wireless is included in the segment "Mobile telecommunications – US".
Share-based payments
The
Group adopted
SFAS No. 123 (Revised 2004), "Share-based Payment", and related FASB
staff positions on 1 October 2005. SFAS No. 123 (Revised 2004) eliminates the
option to account for share-based payments to employees using the intrinsic value
method and requires share-based payments to be recorded using the fair value
method. Under the fair value method, the compensation cost for employees and
directors is determined at the date awards are granted and recognised over the
service period.
Concurrent with the adoption of SFAS No. 123 (Revised 2004), the Group adopted
Staff Accounting Bulletin (SAB) 107. SAB 107 summarises the views of the SEC
Staff regarding the interaction between SFAS No. 123 (Revised 2004) and certain
SEC rules and regulations and
provides the staff's views regarding the valuation of share-based payment
arrangements for public companies.
The Group has adopted SFAS No. 123 (Revised 2004) using the modified retrospective
method. Under this method, the Group has adjusted the financial statements for
the periods between 1 April 1995 and 30 September 2005 to give effect to the
fair value method of accounting for awards granted, modified or settled during
those periods on a basis consistent with the pro forma amounts disclosed under
the requirements
of the original
SFAS No. 123, "Accounting for Stock-Based Compensation". The provisions
of SFAS No. 123 (Revised 2004) will be applied to all awards granted, modified,
or settled after 1 October 2005. The effect of applying the original provisions
of SFAS No. 123 under the modified retrospective method of adoption on the year
ended 31 March 2005 was to decrease loss before income taxes, loss from continuing
operations and net loss by £66 million, £30 million and £30
million
respectively (six months ended 30 September 2005: increases of £4 million, £8
million and £8 million respectively). The adjustment also had the effect
of decreasing both basic and diluted loss per share from continuing operations
and net loss by 0.05 pence (six months ended 30 September 2005: increase 0.01
pence). The adoption of SFAS No. 123 (Revised 2004) increased shareholders' equity
at 1 April 2004 by £112
million.
k.   Loss per share
The
share options and shares described in note 20 were excluded from the calculation
of diluted loss per share as the effect of their inclusion in the calculation
would be
antidilutive due to the Group recognising a loss in all periods presented.
39.   New
    accounting standards
The
    Group has not adopted the following standards, which have been issued by the
    IASB or the International Financial Reporting Interpretations Committee ("IFRIC").
    The Group does not currently believe the adoption of these standards will
    have a material impact on the consolidated results or financial position of
    the Group.
•
IAS
       Amendment, "Amendment to IAS 1, "Presentation of Financial Statements" – Capital
       Disclosures" (effective
       for annual periods beginning after 1 January 2007, with earlier application
    encouraged).
•
IFRIC
       4, "Determining whether an Arrangements contains a Lease" (effective
    from 1 April 2006).
•
IFRIC
       5, "Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds" (effective
    from 1 April 2006).
•
IFRIC
       6, "Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment" (effective
       from 1 April
2006).
•
IFRIC
       7, "Applying the Restatement Approach under IAS 29, "Financial Reporting in Hyperinflationary Economies" (effective
       from 1 April
2006).
•
IFRIC
       8, "Scope of IFRS 2" (effective for annual periods beginning
       on or after 1 May 2006, with early application encouraged). This interpretation
       has
not yet been adopted for use in the EU.
•
IFRIC
       9, "Reassessment of Embedded Derivatives" (effective for annual
       periods beginning on or after 1 June 2006, with early application encouraged).
       This
interpretation has not yet been adopted for use in the EU.
Vodafone
            Group Plc
Annual Report 2006
125
Back to Contents
Notes
  to the Consolidated Financial Statements
continued
40.   Transition
    to IFRS on first-time adoption
Basis
    of preparation of IFRS financial information
The
    Group's Annual Report for the year ended 31 March 2006 is the first annual
Consolidated
    Financial Statements that comply with IFRS. The Consolidated Financial Statements
    have been prepared in accordance with the significant accounting policies
    described in note 2. The Group has applied IFRS 1, "First-time Adoption
    of International Financial Reporting Standards" in preparing these statements.
IFRS 1 exemptions
IFRS 1 sets out the procedures that the Group must follow when it adopts IFRS for the first time as the basis for preparing its Consolidated Financial Statements. The Group is
required to establish its IFRS accounting policies as at 31 March 2006 and, in general, apply these retrospectively to determine the IFRS opening balance sheet at its date of transition, 1 April 2004. This standard provides a number of optional
exemptions to this general principle. These are set out below, together with a description in each case of the exemption adopted by the Group.
Business combinations that occurred before the opening IFRS balance sheet
date (IFRS 3, "Business Combinations")
The
Group has elected not to apply IFRS 3 retrospectively to business combinations
that took place before the date of transition. As a result, in the opening balance
sheet, goodwill arising from past business combinations remains as stated under
UK GAAP at 31 March 2004.
If the Group had elected to apply IFRS 3 retrospectively, the purchase consideration
would have been allocated to the following major categories of acquired intangible
assets and liabilities based on their fair values: licence and spectrum fees,
brands, customer bases, and deferred tax liabilities. Goodwill would have been
recognised as the excess of the purchase consideration over the fair values of
acquired assets and
liabilities – retrospective application may have resulted in an increase
or decrease to goodwill. The fair values of the acquired intangible assets would
have been amortised over their respective useful lives.
Employee benefits – actuarial gains and losses (IAS 19, "Employee
Benefits")
The
Group has elected to recognise all cumulative actuarial gains and losses in relation
to employee benefit schemes at the date of transition.
Share-based payments (IFRS 2, "Share-based Payment")
The
Group has elected to apply IFRS 2 to all relevant share-based payment transactions
granted but not fully vested at 1 April 2004.
Financial instruments (IAS 39, "Financial Instruments: Recognition
    and
Measurement" and IFRS 7, "Financial Instruments:
    Disclosures")
The
    Group has applied IAS 32 and IAS 39 for all periods presented and has therefore
    not taken advantage of the exemption in IFRS 1 that would enable the Group
    to only apply these standards from 1 April 2005.
Cumulative translation differences (IAS 21, "The Effects of Changes
    in
Foreign Exchange Rates")
The
    Group has deemed the cumulative translation differences at the date of transition
    to IFRS to be zero. As a result, the gain or loss of a subsequent disposal
    of any foreign operation will exclude the translation differences that arose
    before the date of transition to IFRS.
If the Group had not applied the exemption, the gain or loss on any disposals
after the transition date would include additional cumulative transaction differences
relating to the
businesses disposed of.
Fair value or revaluation as deemed cost (IAS 16, "Property, Plant
    and
Equipment" and IAS 38, "Intangible Assets")
The
    Group has not elected to measure any item of property, plant and equipment
    or intangible asset at the date of transition to IFRS at its fair value.
Impact of transition to IFRS
The following
is a summary of the effects of the differences between IFRS and UK GAAP on the
Group's total equity shareholders' funds and profit for the financial
year for the years previously reported under UK GAAP following the date of transition
to IFRS.
Total
equity shareholders' funds
1 April 2004
31 March 2005
Note
£m
£m
Total equity shareholders' funds (UK GAAP)
111,924
99,317
Measurement and recognition differences:
Intangible assets
a
(164
)
13,986
Proposed dividends
b
728
1,395
Financial instruments
c
385
350
Share-based payments
d
12
63
Defined benefit pension schemes
e
(257
)
(361
)
Deferred and current taxes
f
(1,011
)
(774
)
Other
(66
)
(176
)
Total
       equity shareholders' funds (IFRS)
111,551
113,800
Profit for the year ended 31 March 2005
Note
£m
Loss on ordinary activities after taxation (UK GAAP)
(6,938)
Measurement and recognition differences:
Intangible assets
a
14,263
Financial instruments
c
(174
)
Share-based payments
d
(91
)
Defined benefit pension schemes
e
7
Deferred and current taxes
f
10
Other
(130
)
Presentation differences:
Presentation of equity accounted investments
g
(45
)
Presentation of joint ventures
h
(384
)
Profit
       for the financial year (IFRS)
6,518
There were no significant differences between IFRS and UK GAAP on the Group's cash flow statement for the year ended 31 March 2005.
126
Vodafone
    Group Plc
Annual Report 2006
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Financials
Principal differences between IFRS and UK GAAP
Measurement and recognition differences
a.   Intangible
    assets
IAS
38, "Intangible Assets" requires that goodwill is not amortised. Instead
it is subject to an annual impairment review. As the Group has elected not to
apply IFRS 3 retrospectively to business combinations prior to the opening balance
sheet date under IFRS, the UK GAAP goodwill balance, after adjusting for items
including the impact of proportionate consolidation of joint ventures, at 31
March 2004
(£78,753 million) has been included in the opening IFRS consolidated balance
sheet and is no longer amortised.
Under IAS 38, capitalised payments for licences and spectrum fees are amortised
on a straight line basis over their useful economic life. Amortisation is charged
from the commencement
of service of the network. Under UK GAAP, the Group's policy was to amortise
such costs in proportion to the capacity of the network during the start up period
and then on a straight-line basis thereafter.
b.   Proposed
    dividends
IAS
10, "Events after the Balance Sheet Date" requires that dividends declared
after the balance sheet date should not be recognised as a liability at that
balance sheet date as the liability does not represent a present obligation as
defined by IAS 37, "Provisions, Contingent Liabilities and Contingent Assets".
c.   Financial
    instruments
IAS
32, "Financial Instruments: Disclosure and Presentation" and IAS 39, "Financial
Instruments: Recognition and Measurement" address the accounting for, and
reporting of, financial instruments. IAS 39 sets out detailed accounting requirements
in relation to financial assets and liabilities.
All derivative financial instruments are accounted for at fair market value whilst
other financial instruments are accounted for either at amortised cost or at
fair value depending on their classification. Subject to certain criteria, financial
assets and financial liabilities may be designated as forming hedge relationships
as a result of which fair value changes are offset in the income statement or
charged/credited to equity
depending on the nature of the hedge relationship.
d.   Share-based
    payments
IFRS
2, "Share-based Payment" requires that an expense for equity instruments
granted be recognised in the financial statements based on their fair value at
the date of grant. This expense, which is primarily in relation to employee option
and performance share schemes, is
recognised over the vesting period of the scheme.
While IFRS 2 allows the measurement of this expense to be calculated only on
options granted after 7 November 2002, the Group has applied IFRS 2 to all instruments
granted but not fully vested as at 1 April 2004. The Group has adopted the binomial
model for the purposes of calculating fair value under IFRS, calibrated using
a Black-Scholes framework.
e.   Defined
    benefit pension schemes
The
Group elected
to adopt early the amendment to IAS 19, "Employee Benefits" issued
by the IASB on 16 December 2004 which allows all actuarial gains and losses to
be
charged or credited to equity.
The Group's opening IFRS balance sheet at 1 April 2004 reflects the assets
and liabilities of the Group's defined benefit schemes totalling a net liability
of £154
million. The transitional adjustment of £257 million to opening reserves
comprises the reversal of entries in relation to UK GAAP accounting under SSAP
24 less the recognition of the net liabilities of the Group's and associated
undertakings' defined benefit schemes.
f.   Deferred
    and current taxes
The
scope of IAS 12, "Income Taxes" is wider than the corresponding UK
GAAP standards, and requires deferred tax to be provided on all temporary differences
rather than just timing differences
under UK GAAP.
As a result, taxes in the Group's IFRS opening balance sheet at 1 April 2004
were adjusted by £1.0 billion. This includes an additional deferred tax
liability of £1.8 billion in respect of the differences between the carrying
value and tax written down value of the Group's investments in associated undertakings
and joint ventures. This comprises £1.3 billion in respect of differences
that arose when US
investments were acquired and £0.5 billion in respect of undistributed
earnings of certain associated undertakings and joint ventures, principally Vodafone
Italy. UK GAAP does not permit deferred tax to be provided on the undistributed
earnings of the Group's associated undertakings and joint ventures until
there is a binding obligation to distribute those earnings.
IAS 12 also requires
deferred tax to be provided in respect of the Group's liabilities under
its post employment benefit arrangements and on other employee benefits such
as share
and share option schemes.
Presentation differences
g.   Presentation
    of equity accounted investments
Under
IFRS, in accordance
with IAS 1, "Presentation of Financial Statements", "Tax on profit" on
the face of the consolidated income statement comprises the tax charge of the
Company, its subsidiaries and its share of the tax charge of joint ventures.
The Group's share of its associated undertakings' tax charges is shown
as part of "Share of result in associated undertakings" rather than
being disclosed as part of the tax charge under UK GAAP.
In respect of the
Verizon Wireless partnership, the line "Share of result in associated undertakings" includes
the Group's share of pre-tax partnership income and the
Group's share of the post-tax income attributable to corporate entities
(as determined for US corporate income tax purposes) held by the partnership.
The tax attributable to the Group's share of allocable partnership income
is included as
part of "Tax on profit" in the consolidated income statement. This
treatment reflects the fact that tax on allocable partnership income is, for
US corporate income tax purposes, a liability of the partners and not the partnership.
Under UK
GAAP, the Group's share of minority interests in associated undertakings
was reported in minority interests, under IFRS this is reported within investments
in associated undertakings.
h.   Presentation
    of joint ventures
IAS
31, "Interests in Joint Ventures" defines a jointly controlled entity
as an entity where unanimous consent over the strategic financial and operating
decisions is required between the parties sharing control. Control is defined
as the power to govern the financial and operating decisions of an entity so
as to obtain economic benefit from it.
The Group has reviewed the classification of its investments and concluded that
the Group's 76.9% (31 March 2005: 76.8%) interest in Vodafone Italy, classified
as a subsidiary undertaking under UK GAAP, should be accounted for as a joint
venture under IFRS. In addition, the Group's interests in South Africa,
Poland, Kenya and Fiji, which were classified as associated undertakings under
UK GAAP, have been classified as joint ventures under IFRS as a result of the
contractual rights held by the Group. The Group's interest in Romania was
classified as a joint venture until the acquisition of the controlling stake
from Telesystem International Wireless Inc. of Canada completed on 31 May 2005.
The Group has adopted proportionate consolidation as the method of accounting
for these six entities.
Under UK GAAP, the revenue, operating profit, net financing costs and taxation
of Vodafone Italy were consolidated in full in the income statement with a corresponding
allocation to minority interest. Under proportionate consolidation, the Group
recognises its share of all income statement lines with no allocation to minority
interest. There is no effect on the result for a financial period from this adjustment.
Under UK GAAP, the
Group's interests in South Africa, Poland, Romania, Kenya and Fiji were
accounted for under the equity method, with the Group's share of operating
profit, interest and tax being recognised separately in the consolidated income
statement. Under proportionate consolidation, the Group recognises its share
of all income statement lines. There is no effect on the result for a financial
period from this
adjustment.
Under UK GAAP, the Group fully consolidated the cash flows of Vodafone Italy,
but did not consolidate the cash flows of its associated undertakings. The IFRS
consolidated cash flow
statement reflects the Group's share of cash flows relating to its joint
ventures on a line by line basis, with a corresponding recognition of the Group's
share of net debt for each of the proportionately consolidated entities.
Other differences
i.   Reclassification
    of non-equity minority interests to liabilities
The
primary impact of the implementation of IAS 32 is the reclassification of the
$1.65 billion
preferred shares issued by the Group's subsidiary, Vodafone Americas Inc.,
from non-equity minority interests to liabilities. The reclassification at 1
April 2004 was £875 million. Dividend payments by this subsidiary, which
were previously reported in the Group's income statement as non-equity minority
interests, have been reclassified to
financing costs.
j.   Fair
    value of available-for-sale financial assets
The
Group has classified certain of its cost-based investments as available-for-sale
financial assets as defined in IAS 39. This classification does not reflect the
intentions of management in relation to these investments. These assets are measured
at fair value at each reporting date with movements in fair value taken to equity.
At
1 April 2004, a cumulative increase of £233 million in the fair value over
the
carrying value of these investments was recognised.
Vodafone
            Group Plc
Annual Report 2006
127
Back to Content
Notes to the Consolidated Financial Statements
continued
40.   Transition
to IFRS on first-time adoption
continued
Reconciliation of the UK GAAP consolidated profit and loss account to the IFRS consolidated income statement
Year ended 31 March 2005
Measurement
Presentation
and recognition
Discontinued
UK GAAP
differences
differences
operations
IFRS
UK GAAP format
£m
£m
£m
£m
£m
IFRS format
Turnover
34,133
–
(60
)
(7,395
)
26,678
Revenue
Cost of sales
(20,753
)
–
(711
)
5,664
(15,800
)
Cost of sales
Gross profit
13,380
–
(771
)
(1,731
)
10,878
Gross profit
Selling and distribution costs
(2,031
)
–
(15
)
397
(1,649
)
Selling and distribution expenses
Administrative expenses
(16,653
)
315
12,812
670
(2,856
)
Administrative expenses
404
1,576
–
1,980
Share of result in associated
undertakings
(315
)
(160
)
–
(475
)
Other income and expense
Operating loss
(5,304
)
404
13,442
(664
)
7,878
Operating profit
Share of result in associated undertakings
1,193
(1,193
)
Exceptional non-operating items
13
(13
)
8
(2
)
(13
)
(7
)
Non-operating income and expense
324
(21
)
(9
)
294
Investment income
Net interest payable and similar items
(604
)
(113
)
(183
)
20
(880
)
Financing costs
Loss on ordinary activities before taxation
(4,702
)
(583
)
13,236
(666
)
7,285
Profit before taxation
Tax on loss on ordinary activities
(2,236
)
538
265
(436
)
(1,869
)
Tax on profit
Loss on ordinary activities after taxation
(6,938
)
(45
)
13,501
(1,102
)
5,416
Profit on ordinary activities after
taxation from continuing operations
–
–
–
1,102
1,102
Profit on ordinary activites after
taxation from discontinued
operations
(6,938
)
(45
)
13,501
–
6,518
Profit for the financial year
Minority interest
(602
)
45
449
–
(108
)
Profit for the financial year
attributable to minority interests
Loss for the financial year
(7,540
)
–
13,950
–
6,410
Profit for the financial year
attributable to equity shareholders
128
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Reconciliation of the UK GAAP consolidated balance sheet to the IFRS consolidated balance sheet
1
April 2004
Measurement
Presentation
and recognition
UK
GAAP
differences
differences
IFRS
UK GAAP format
£m
£m
£m
£m
IFRS format
Fixed assets:
Non-current assets:
Intangible assets
93,622
–
1,002
94,624
Intangible assets
Tangible assets
18,083
–
(971
)
17,112
Property, plant and equipment
Investments in associated undertakings
21,226
–
(800
)
20,426
Investments in associated undertakings
Other investments
1,049
–
233
1,282
Other investments
671
136
807
Deferred tax assets
221
(9
)
212
Trade and other receivables
133,980
892
(409
)
134,463
Current assets:
Current assets:
Stocks
458
–
10
468
Inventory
Debtors
6,901
(6,901
)
372
(103
)
269
Taxation recoverable
5,148
305
5,453
Trade and other receivables
Investments
4,381
(4,381
)
Cash at bank and in hand
1,409
4,381
61
5,851
Cash and cash equivalents
13,149
(1,381
)
273
12,041
Total assets
147,129
(489
)
(136
)
146,504
Total assets
Capital and reserves:
Equity:
Called up share capital
4,280
–
–
4,280
Called up share capital
Share premium account
52,154
–
–
52,154
Share premium account
Own shares held
(1,136
)
–
–
(1,136
)
Own shares held
Other reserve
99,640
–
310
99,950
Additional paid-in capital
–
233
233
Other reserves
Profit and loss account
(43,014
)
–
(916
)
(43,930
)
Retained losses
Total equity shareholders' funds
111,924
–
(373
)
111,551
Total equity shareholders' funds
Minority interests
3,007
–
(2,198
)
809
Minority interests
114,931
–
(2,571
)
112,360
Creditors – amounts falling due after more than one year
12,975
(12,975
)
Non-current liabilities:
12,224
1,859
14,083
Long-term borrowings
3,314
1,421
4,735
Deferred tax liabilities
(73
)
227
154
Post employment benefits
Provisions for liabilities and charges
4,197
(3,858
)
5
344
Provisions for liabilities and charges
751
(449
)
302
Trade and other payables
17,172
(617
)
3,063
19,618
Creditors – amounts falling due within one year
15,026
(15,026
)
Current liabilities:
2,054
788
2,842
Short-term borrowings
4,275
(356
)
3,919
Current taxation liabilities
8,643
(1,068
)
7,575
Trade and other payables
182
8
190
Provisions for liabilities and charges
15,026
128
(628
)
14,526
147,129
(489
)
(136
)
146,504
Total equity and liabilities
Vodafone
            Group Plc
Annual Report 2006
129
Back to Content
Notes
      to the Consolidated Financial Statements
continued
40.   Transition
    to IFRS on first-time adoption
continued
31
March 2005
Measurement
Presentation
and recognition
UK GAAP
differences
differences
IFRS
UK GAAP format
£m
£m
£m
£m
IFRS format
Fixed assets:
Non-current assets:
68,673
12,326
80,999
Goodwill
Intangible assets
83,464
(68,673
)
1,358
16,149
Other intangible assets
Tangible assets
18,398
–
(956
)
17,442
Property, plant and equipment
Investments in associated undertakings
19,398
–
836
20,234
Investments in associated undertakings
Other investments
852
–
329
1,181
Other investments
1,084
100
1,184
Deferred tax assets
12
–
12
Post employment benefits
613
(28
)
585
Trade and other receivables
122,112
1,709
13,965
137,786
Current assets:
Current assets:
Stocks
430
–
10
440
Inventory
Debtors
7,698
(7,698
)
268
(230
)
38
Taxation recoverable
5,049
115
5,164
Trade and other receivables
Investments
816
(816
)
Cash at bank and in hand
2,850
816
103
3,769
Cash and cash equivalents
11,794
(2,381
)
(2
)
9,411
Total assets
133,906
(672
)
13,963
147,197
Total assets
Capital and reserves:
Equity:
Called up share capital
4,286
–
–
4,286
Called up share capital
Share premium account
52,284
–
–
52,284
Share premium account
Own shares held
(5,121
)
–
–
(5,121
)
Own shares held
Other reserve
99,556
–
525
100,081
Additional paid-in capital
–
1,781
1,781
Accumulated other recognised
income and expense
Profit and loss account
(51,688
)
–
12,177
(39,511
)
Retained losses
Total equity shareholders' funds
99,317
–
14,483
113,800
Total equity shareholders' funds
Minority interests
2,818
–
(2,970
)
(152
)
Minority Interests
102,135
–
11,513
113,648
Creditors – amounts falling due after more than one year
12,382
(12,382
)
Non-current liabilities:
11,613
1,577
13,190
Long-term borrowings
3,481
1,368
4,849
Deferred tax liabilities
(171
)
307
136
Post employment benefits
Provisions for liabilities and charges
4,552
(4,235
)
2
319
Provisions for other liabilities and
charges
797
(359
)
438
Trade and other payables
16,934
(897
)
2,895
18,932
Creditors – amounts falling due within one year
14,837
(14,837
)
Current liabilities:
392
1,611
2,003
Short-term borrowings
4,759
(406
)
4,353
Current taxation liabilities
9,717
(1,684
)
8,033
Trade and other payables
194
34
228
Provisions for other liabilities and
charges
14,837
225
(445
)
14,617
133,906
(672
)
13,963
147,197
Total equity and liabilities
130
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Report of Independent Registered Public Accounting Firm to the Members of Vodafone Group Plc
We have audited
  the Consolidated Financial Statements of Vodafone Group Plc, which comprise
  the consolidated consolidated balance sheets at 31 March 2006 and 2005, the
  consolidated income statements, consolidated cash flow statements, the consolidated
  statements of recognised income and expenses for each of the two years in the
  period ended 31 March 2006 and the related notes numbered 1 to 40. These Consolidated
  Financial
Statements have been prepared under the accounting policies set out therein.
  We have also audited the information in the directors' remuneration report
  that is described as having been audited.
We have reported separately on the individual Company Financial Statements of
Vodafone Group Plc for the year ended 31 March 2006.
Respective responsibilities of directors and auditors
The
directors' responsibilities for preparing the annual report, the directors' remuneration report and the Consolidated Financial Statements in accordance with applicable
law and International Financial Reporting Standards (IFRS) as adopted for use in the European Union are set out in the statement of directors' responsibilities.
Our responsibility is to audit the Consolidated Financial Statements and the
part of the directors' remuneration report described as having been audited
in accordance with relevant United Kingdom legal and regulatory requirements
and International Standards on Auditing (UK
and Ireland).
We report to you our opinion as to whether the Consolidated Financial Statements
give a true and fair view in accordance with the relevant financial reporting
framework and whether the Consolidated Financial Statements and the part of the
directors' remuneration report described as having been audited have been
properly prepared in accordance with the Companies Act 1985 and Article 4 of
the IAS Regulation.
We report to you if
in our opinion the information given in the directors' report is not consistent
with the Consolidated Financial Statements. We also report to you if we have
not received all the information and explanations we require for our audit, or
if information specified by law regarding directors' transactions with the
Company and other members of the Group is not disclosed.
We also report to you if, in our opinion, the Company has not complied with any
of the four directors' remuneration disclosure requirements specified for
our review by the Listing Rules of the Financial Services Authority. These comprise
the amount of each element in the remuneration package and information on share
options, details of long term incentive schemes, and money purchase and defined
benefit schemes. We give a statement, to the extent possible, of details of any
non-compliance.
We review whether
the corporate governance statement reflects the Company's compliance with
the nine provisions of the 2003 FRC Combined Code specified for our review by
the Listing Rules of the Financial Services Authority, and we report if it does
not. We are not required to consider whether the board's statement on internal
control covers all risks and controls, or form an opinion on the effectiveness
of the
Group's corporate governance procedures or its risk and control procedures.
We read the directors' report and the other information contained in the
annual report for the above year as described in the contents section including
the unaudited part of the
directors' remuneration report and we consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies
with the Consolidated Financial Statements.
Basis of audit opinion
We conducted
  our audit in accordance with International Standards on Auditing (UK and Ireland)
  issued by the Auditing Practices Board and with the standards of the Public
  Company Accounting Oversight Board (United States). The Company is not required
  to have, nor were we engaged to perform, an audit of its internal control over
  financial reporting. Our audit included consideration of internal control over
  financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances
  but not for the purpose of expressing an opinion on the effectiveness of the
  Company's internal control over financial reporting. Accordingly, we express no
such opinion. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Consolidated Financial Statements and the part of the directors' remuneration report described as having been audited. It
also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the Consolidated Financial Statements, and of whether the accounting policies are appropriate to the Group's
circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence
to give reasonable assurance that the Consolidated Financial Statements and the
part of the directors' remuneration report described as having been audited
are free
from material misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of the presentation
of information in
the Consolidated Financial Statements and the part of the directors' remuneration
report described as having been audited.
Opinions
IFRS opinion
I
n our opinion:
•
the
       Consolidated Financial Statements give a true and fair view, in accordance
       with IFRS as adopted for use in the European Union, of the state of the
       Group's
affairs as at31
March 2006 and of its loss for the year then ended;
•
the
       Consolidated Financial Statements and the part of the directors' remuneration
       report described as having been audited have been properly prepared in
       accordance with the Companies Act 1985 and Article 4 of the IAS Regulation;
    and
•
the
       information given in the directors' report is consistent with the
    Consolidated Financial Statements.
As explained in note 1 of the Consolidated Financial Statements, the Group, in
addition to complying with its legal obligation to comply with IFRS as adopted
for use in the European Union, has also complied with the IFRS as issued by the
International Accounting Standards Board. Accordingly, in our opinion the financial
statements give a true and fair view, in accordance with IFRS, of the state of
the Group's
affairs as
at
31
March 2006 and of its loss for the year then ended.
US opinion
In our opinion the Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the Group at 31 March 2006 and 2005 and the
consolidated results of its operations and cash flows for each of the two years in the period ended 31 March 2006 in conformity with IFRS as adopted for use in the European Union and as issued by the International Accounting Standards Board.
IFRS vary in significant respects from the accounting principles generally accepted
in the United States of America. Information relating to the nature and effect
of such differences
is presented in note 38 to the Consolidated Financial Statements.
Deloitte & Touche LLP
Chartered
Accountants and Registered Auditors
London
United Kingdom
30 May 2006
Vodafone
            Group Plc
Annual Report 2006
131
Back to Contents
Company Financial Statements of Vodafone Group Plc at 31 March
2006
2005
(restated)
Note
£m
£m
Fixed assets
Other investments
3
133
–
Shares in group undertakings
3
67,395
94,446
67,528
94,446
Current assets
Debtors: amounts falling due after more than one year
4
236
370
Debtors: amounts falling due within one year
4
99,417
77,466
Investments
5
–
28
99,653
77,864
Creditors: amounts falling due within one year
6
(76,591
)
(89,740
)
Net current assets/( liabilities)
23,062
(11,876
)
Total assets less current liabilities
90,590
82,570
Creditors: amounts falling due after more than one year
6
(13,487
)
(9,380
)
77,103
73,190
Capital and reserves
Called up share capital
7
4,165
4,286
Share premium account
8
52,444
52,284
Capital redemption reserve
8
128
–
Capital reserve
8
88
88
Other reserves
8
1,012
1,048
Own shares held
8
(8,186
)
(5,085
)
Profit and loss account
8
27,452
20,569
Equity shareholders' funds
77,103
73,190
The Financial Statements were approved by the Board of directors on 30 May 2006 and were signed on its behalf by:
Arun
    Sarin
Andy
    Halford
Chief
    Executive
Chief
    Financial Officer
The accompanying notes are an integral part of these Financial Statements.
132
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Notes to the Company Financial Statements
1.
Basis of preparation
The
  separate financial statements of the Company are drawn up in accordance with
  the Companies
  Act 1985 and UK generally accepted accounting principles ("UK GAAP").
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual results could
differ from those estimates. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both
current and future periods.
As permitted by Section 230 of the Companies Act 1985, the profit and loss account
of the Company is not presented in this Annual Report.
The Company has taken
advantage of the exemption contained in FRS 1 "Cash flow statements" and
has not produced a cash flow statement.
The Company has taken
advantage of the exemption contained in FRS 8 "Related party disclosures" and
has not reported transactions with fellow Group undertakings.
2.
Significant accounting policies
The
  Company's significant accounting policies are described below.
Accounting convention
The Company Financial Statements are prepared under the historical cost convention and in accordance with applicable accounting standards of the UK Accounting Standards Board and
pronouncements of the Urgent Issues Task Force.
New accounting standards
The
Company has adjusted its accounting policies to adopt the following new standards:
  FRS 17 "Retirement Benefits", FRS 20 "Share-based Payments", FRS 21
"Events after the Balance Sheet Date", FRS 22 "Earnings per share", FRS 23 "The Effects of Changes in Foreign Exchange Rates", FRS 26 "Financial Instruments: Measurement" and FRS 28 "Corresponding
Amounts". The Company has also early adopted FRS 29 "Financial Instruments: Disclosures", which replaces the disclosure requirements of FRS 25 "Financial Instruments: Disclosure and Presentation". Comparative figures have
been restated accordingly for changes in accounting policy. Details of the effect of the prior year adjustment are set out below and the full impact on the Company's
net asset position as at 1 April 2005 is analysed in note 8.
FRS 17 impacts the Company in its role as sponsoring employer of the Vodafone
Group Pension Scheme, a defined benefit pension scheme. The adoption of FRS 17
had no effect on the
Company's profit or net assets as the Company was unable to identify its
share of the underlying assets and liabilities of the Vodafone Group Pension
Scheme on a consistent and reasonable basis. Therefore the Company has applied
the guidance within FRS 17 to account for defined benefit schemes as if they
were defined contribution schemes and recognise only the contribution payable
each year. The Company had no contributions payable for the years ended 31 March
2006 and 31 March 2005 as
it has no employees.
FRS 20 requires that the fair value of options and shares awarded to employees
is charged to the profit and loss account over the vesting period. The Company
does not incur a charge under this standard. However, where the Company has granted
rights over the Company's shares or share options to the employees of its
subsidiary undertakings, an additional capital contribution has been deemed to
have been made by the Company to its subsidiary undertakings. This results in
an additional investment in subsidiaries and a corresponding increase in shareholders
equity. The additional capital contribution is based on the fair value of the
grant issued allocated over the
underlying grant's vesting period. As a result of adopting FRS 20, the Company's
net assets at 31 March 2005 increased by £419
million.
FRS 21 requires that dividends declared after the balance sheet date should not
be recognised as a liability at the balance sheet date as the liability does
not represent a present obligation. Under FRS 21, interim dividends are recognised
when they are paid, and final dividends are recognised when they are approved
by shareholders. As
a result of adopting FRS 21, the Company's net assets at 31 March 2005 increased
by £1,395 million.
FRS 23 sets out additional guidance on the translation method for transactions
in foreign currencies and on determining the functional and presentational currencies.
The adoption of
FRS 23 had no impact on the Company's profit or net assets.
The Company has adopted the presentation requirements of FRS 25. This deals with
the classification of capital instruments issued between debt and equity and
the implications of that
classification for dividends and interest expense.
FRS 26 sets out the requirements for measurement, recognition and de-recognition
of financial instruments. The main impact of this change in accounting policy
is to recognise the fair value of foreign exchange contracts and interest rate
swaps on the balance sheet with effect from the transitional date of 1 April
2004. The adoption of FRS 26
increased the Company's net assets at 31 March 2005 by £182 million.
FRS 28 gives the requirements for the disclosure of corresponding amounts for
items shown in an entity's primary financial statements and the notes to
the financial statements.
The adoption of FRS 28 had no effect upon the Company's profit or net assets.
FRS 29 sets out the requirements for the disclosures relating to financial instruments.
The Company has early adopted FRS 29 and applied its requirements from 1 April
2005. The Company is exempt from the requirements of the standard as full FRS
29 disclosures are available in the Vodafone Group Plc Annual Report 2006.
Investments
Shares in Group undertakings are stated at cost less any provision for permanent diminution in value.
The Company assesses investments for impairment whenever events or changes in
circumstances indicate that the carrying value of an investment may not be recoverable.
If any such indication of impairment exists, the Company makes an estimate of
the recoverable amount. If the recoverable amount of the cash-generating unit
is less than the value of the investment, the investment is considered to be
impaired and is written down to its recoverable amount. An impairment loss is
recognised immediately in the profit and loss account.
For available-for-sale investments, gains and losses arising from changes in
fair value are recognised directly in equity, until the security is disposed
of or is determined to be impaired, at which time the cumulative gain or loss
previously recognised in equity, determined using the weighted average costs
method, is included in the net profit or loss for the period.
Foreign currencies
In
preparing the financial statements of the Company, transactions in currencies
other than
  the Company's functional currency are recorded at the rates of exchange
  prevailing on the dates of the transactions. At each balance sheet date, monetary
  items denominated in foreign currencies are retranslated at the rates prevailing
  on the balance sheet date. Non-monetary items carried at fair value that are
  denominated in foreign
currencies are retranslated at the rate prevailing on the date when fair value
  was determined. Non-monetary items that are measured in terms of historical
  cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in the profit and loss account
for the period. Exchange differences arising on the retranslation of non-monetary
items carried at fair value are included in the profit and loss account for the
period except for differences arising on the retranslation of non-monetary items
in respect of which gains and losses are recognised directly in equity. For such
non-monetary items, any exchange component of that gain or loss is also recognised
directly in equity.
Vodafone
            Group Plc
Annual Report 2006
133
Back to Contents
Notes
  to the Company Financial Statements
continued
2.   Significant
    accounting policies
continued
Borrowing costs
All
  borrowing costs are recognised in the profit and loss account in the period
  in which they are incurred.
Taxation
Current tax,
  including UK corporation tax and foreign tax, is provided at amounts expected
  to be paid (or recovered) using the tax rates and laws that have been enacted
  or substantively enacted by the balance sheet date.
Deferred
  tax is provided in full on timing differences that exist at the balance sheet
  date and that result in an obligation to pay more tax, or a right to pay less
  tax in the future. The deferred tax is measured at the rate expected to apply
  in the periods in which the timing differences are expected to reverse, based
  on the tax rates and laws that are enacted or substantively enacted at the balance
  sheet date. Timing differences arise from the inclusion of items of income and
  expenditure in taxation computations in periods different from those in which
  they are included in the financial statements. Deferred tax is not provided
  on timing differences arising from the revaluation of fixed assets where there
  is no binding commitment to sell the asset. Deferred tax assets are recognised
  to the extent that it is regarded as more likely than not that they will be
  recovered. Deferred tax assets and liabilities are not discounted.
Financial
  instruments
Financial
  assets and financial liabilities, in respect of financial instruments, are recognised
  on the balance sheet when the Company becomes a party to the contractual provisions
  of the instrument.
Financial
  liabilities and equity instruments
Financial
  liabilities and equity instruments issued by the Company are classified according
  to the substance of the contractual arrangements entered into and the definitions
  of a financial liability and an equity instrument. An equity instrument is any
  contract that evidences a residual interest in the assets of the Company after
  deducting all of its liabilities. The accounting policies adopted for specific
  financial liabilities and equity instruments are set out below.
Capital
  market and bank borrowings
Interest-bearing
  loans and overdrafts are initially measured at fair value, and are subsequently
  measured at amortised cost, using the effective interest rate method, except
  where they are identified as a hedged item in a fair value hedge. Any difference
  between the proceeds net of transaction costs and the settlement or redemption
  of borrowings is recognised over the term of the borrowing.
Equity
  instruments
Equity instruments
  issued by the Company are recorded at the proceeds received, net of direct issue
  costs.
Derivative
  financial instruments and hedge accounting
The Company's
  activities expose it to the financial risks of changes in foreign exchange rates
  and interest rates.
The use
  of financial derivatives is governed by the Group's policies approved by
  the board of directors, which provide written principles on the use of financial
  derivatives consistent with the Group's risk management strategy. The Company
  does not use derivative financial instruments for speculative purposes.
Derivative
  financial instruments are initially measured at fair value on the contract date,
  and are subsequently re-measured to fair value at each reporting date. The Company
  designates certain derivatives as hedges of the change of fair value of recognised
  assets and liabilities ("fair value hedges"). Hedge accounting is
  discontinued when the hedging instrument expires or is sold, terminated, or
  exercised, or no longer qualifies for hedge accounting.
Fair value
  hedges
The Company's
  policy is to use derivative instruments (primarily interest rate swaps) to convert
  a proportion of its fixed rate debt to floating rates in order to hedge the
  interest rate risk arising, principally, from capital market borrowings. The
  Company designates these as fair value hedges of interest rate risk with changes
  in fair value of the hedging instrument recognised in the profit and loss account
  for the period together with the changes in the fair value of the hedged item
  due to the hedged risk, to the extent the hedge is effective. The ineffective
  portion is recognised immediately in the profit and loss account.
Share
  based payments
The Group
  operates a number of equity settled share based compensation plans for the employees
  of subsidiary undertakings, using the Company's equity instruments. The
  fair value of the compensation given in respect of these share based compensation
  plans is recognised as a capital contribution to the Company's subsidiary
  undertakings, over the vesting period. The capital contribution is reduced by
  any payments received from subsidiary undertakings in respect of these share
  based payments.
Dividends
  paid and received
Dividends
  paid and received are included in the financial statements in the period in
  which the related dividends are actually paid or received or, in respect of
  the Company's final dividend for the year, approved by shareholders.
134
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
3.   Fixed
  assets
Other
  investments
The
  Company's fixed asset investments comprises £133 million (2005: £nil)
  representing 30,252,460 ordinary shares in VenFin Limited (2005: £nil).
  The investment is held at fair value.
Shares in group
  undertakings
£m
Cost:
1
      April 2005
98,789
Adjustment
      for adoption of FRS 20
419
1 April
      2005, as restated
99,208
Additions
3,642
Capital
      contributions arising from share based payments
114
Contributions
      received in relation to share based payments
(150
)
Disposals
(30,654
)
31 March
      2006
72,160
Amounts
      provided for:
1 April
      2005
4,762
Amounts
      provided for during the year
3
31 March
      2006
4,765
Net
      book value:
31 March
      2006
67,395
31 March
      2005, as restated
94,446
At 31 March
  2006, the Company had the following principal subsidiary undertakings:
Country
      of
incorporation
Percentage
Name
Principal
      activity
or registration
shareholding
Vodafone
      International Operations Limited
Holding
      company
England
100
4.   Debtors
2006
2005
(restated)
£m
£m
Amounts
      falling due within one year:
Amounts
      owed by subsidiary undertakings
99,174
77,246
Taxation
      recoverable
72
37
Group
      relief receivable
–
43
Other
      debtors
171
140
99,417
77,466
Amounts
      falling due after more than one year:
Deferred
      taxation
5
5
Other
      debtors
231
365
236
370
5.   Investments
2006
2005
£m
£m
Liquid
      Investments
–
28
The Company's liquid investments at 31 March 2005 comprised of short term foreign exchange forward contracts.
Vodafone
      Group Plc
Annual Report 2006
135
Back to Contents
Notes
  to the Company Financial Statements
continued
6.   Creditors
2006
2005
(restated)
£m
£m
Amounts
      falling due within one year:
Bank
      loans and other loans
2,143
42
Amounts
      owed to subsidiary undertakings
74,229
89,652
Group
      relief payable
89
–
Other
      creditors
120
34
Accruals
      and deferred income
10
12
76,591
89,740
Amounts
      falling due after more than one year:
Bank
      loans
–
16
Other
      loans
13,321
9,316
Other
      creditors
166
48
13,487
9,380
Included
  in amounts falling due after more than one year are other loans of £5,942
  million, which are due in more than five years from 1 April 2006 and are payable
  otherwise than by instalments. Interest payable on this debt ranges from 3.625%
  and 7.875%.
7.   Share
  capital
2006
2005
Number
£m
Number
£m
Authorised:
Ordinary
      shares of US$0.10 each
78,000,000,000
4,875
78,000,000,000
4,875
Ordinary
      shares allotted, issued and fully paid:
1 April
68,380,866,539
4,286
68,263,933,048
4,280
Allotted
      during the year
120,466,245
7
116,933,491
6
Cancelled
      during the year
(2,250,000,000
)
(128
)
–
–
31 March
66,251,332,784
4,165
68,380,866,539
4,286
Notes:
(1)
At 31 March 2006 the Company held 6,120,129,348 (2005: 3,785,000,000) treasury shares with a nominal value of £352 million (2005: £205
million).
(2)
At 31 March 2006, 50,000 (2005: 50,000) 7% cumulative fixed rate shares of £1 each were authorised, allotted, issued and fully paid by the
Company.
Allotted during
  the year
Nominal
value
Proceeds
Number
£m
£m
UK share
      awards and option scheme awards
85,744,935
5
122
US share
      awards and option scheme awards
34,721,310
2
37
Total
      for share option schemes and restricted stock awards
120,466,245
7
159
Cancelled
  during the year
During
  the year 2,250,000,000 (2005: nil) treasury shares were cancelled in order to
  comply with Companies Act requirements in relation to the amount of issued share
  capital that can be held in treasury.
Share-based
  payments
The
  Company currently uses a number of equity settled share plans to grant options
  and shares to the directors and employees of its subsidiary undertakings, as
  listed below.
Share
  option schemes
Vodafone Group
  savings related and sharesave schemes
Vodafone Group executive schemes
Vodafone
  Group 1999 Long Term Stock Incentive Plan and ADSs
Other share option plans
Share
  plans
Share Incentive
  plan
Restricted share plans
As at 31
  March 2006, the Company had 786.9 million ordinary share options outstanding
  (2005: 1,122.6 million) and 7.7 million ADS options outstanding (2005: 11.2
  million).
The Company
  has made a capital contribution to its subsidiary undertakings in relation to
  share based payments. At 1 April 2005, the capital contribution net of payments
  received from subsidiary undertakings was £419 million. During the year
  ended 31 March 2006, the capital contribution arising from share based payments
  was £114 million, with payments of £150 million received from subsidiary
  undertakings. The Company does not incur a profit and loss account charge in
  relation to share based payments.
Full details
  of share based payments, share option schemes and share plans are disclosed
  in note 20 to the Consolidated Financial Statements.
136
Vodafone
    Group Plc
Annual Report 2006
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Financials
8.
Reserves
and reconciliation of movements in equity shareholders' funds
Share
Capital
Profit
Total equity
premium
redemption
Capital
Other
Own shares
and loss
shareholders'
Share capital
account
reserve
reserve
reserves
held
account
funds
£m
£m
£m
£m
£m
£m
£m
£m
1 April 2005 as previously reported
4,286
52,284
–
88
629
(5,085
)
18,992
71,194
Prior year adjustment – implementation of FRS 20
–
–
–
–
419
–
–
419
Prior year adjustment – implementation of FRS 21
–
–
–
–
–
–
1,395
1,395
Prior year adjustment – implementation of FRS 26
–
–
–
–
–
–
182
182
1 April 2005
4,286
52,284
–
88
1,048
(5,085
)
20,569
73,190
Issue of new shares
7
152
–
–
–
–
–
159
Purchase of own shares
–
–
–
–
–
(6,500
)
–
(6,500
)
Own shares released on vesting of share awards
–
8
–
–
–
346
–
354
Cancellation of own shares held
(128
)
–
128
–
–
3,053
(3,053
)
–
Profit for the financial year
–
–
–
–
–
–
12,671
12,671
Dividends
–
–
–
–
–
–
(2,753
)
(2,753
)
Capital contribution given relating to share based payments
–
–
–
–
114
–
–
114
Contribution received relating to share based payments
–
–
–
–
(150
)
–
–
(150
)
Other movements
–
–
–
–
–
–
18
18
31 March 2006
4,165
52,444
128
88
1,012
(8,186
)
27,452
77,103
In accordance
  with the exemption allowed by section 230 in the Companies Act 1985, no profit
  and loss account has been presented by the Company. The profit for the financial
  year
dealt with in the accounts of the Company is £12,671 million (2005 restated: £10,583
million). Under English law, the amount available for distribution to shareholders
is based upon the profit and loss reserve of the Company and is reduced by the
amount of own shares held and is limited by statutory or other restrictions.
The auditor remuneration
for audit services to the Company was £0.6 million (2005: £0.5 million).
The Company paid no audit fees in relation to non audit services to the Company
for the years ended 31 March 2006 and 31 March 2005.
The directors are remunerated by Vodafone Group Plc for their services to the
Group as a whole. No remuneration was paid to them specifically in respect of
their services to
Vodafone
Group Plc for either year. Full details of the directors' remuneration are
disclosed in the Directors' Remuneration Report in the Vodafone Group Plc
Annual Report 2006.
There were no employees other than directors of the Company throughout the current
or the preceding year.
9.   Equity
    dividends
2006
2005
£m
£m
Declared
      and paid during the financial year:
Final
      dividend for the year ended 31 March 2005: 2.16 pence per share
(2004:
      1.078 pence per share)
1,386
728
Interim
      dividend for the year ended 31 March 2006: 2.20 pence per share
(2005:
      1.91 pence per share)
1,367
1,263
2,753
1,991
Proposed
      or declared after the balance sheet date and not recognised as a liability:
Final
      dividend for the year ended 31 March 2006: 3.87 pence per share
(2005:
      2.16 pence per share)
2,327
1,386
Vodafone
            Group Plc
Annual Report 2006
137
Back to Contents
Notes
  to the Company Financial Statements
continued
10.   Contingent
  liabilities
2006
2005
£m
£m
Performance
      bonds
172
176
Credit
      guarantees – third party indebtedness
1,570
1,424
Other
      guarantees and contingent liabilities
1
1
Performance bonds
Performance bonds require the Company to make payments to third parties in the event that the Company or its subsidiary undertakings do not perform what is expected of it under the
terms of any related contracts.
Company performance bonds include £152 million (2005: £149 million) in respect of undertakings to roll out third generation networks in Spain.
Credit guarantees – third party indebtedness
Credit guarantees comprise guarantees and indemnities of bank or other facilities.
At 31 March 2006, the Company had guaranteed debt of Vodafone Finance K.K. amounting
to £1,268 million (2005: £1,111 million) and issued guarantees in
respect of notes
issued by Vodafone Americas, Inc. amounting to £302 million (2005: £311
million). The Japanese facility expires by March 2011 and the majority of Vodafone
Americas, Inc. bond guarantees by July 2008.
Other guarantees and contingent liabilities
Other guarantees principally comprise commitments to support disposed entities.
Legal proceedings
Details regarding certain legal actions which involve the Company are set out in note 31 to the Consolidated Financial Statements.
138
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Financials
Independent Auditor's Report to the Members of Vodafone Group Plc
We have audited the individual Company Financial Statements of Vodafone Group Plc for the year ended 31 March 2006 which comprise the balance sheet and the related notes 1 to 10.
These individual Company Financial Statements have been prepared under the accounting policies set out therein.
The corporate governance
statement and the directors' remuneration report are included in the Group
annual report of Vodafone Group Plc for the year ended 31 March 2006. We have
reported separately on the Consolidated Financial Statements of Vodafone Group
Plc for the year ended 31 March 2006 and on the information in the directors' remuneration
report that is described as having been audited.
Respective responsibilities of directors and auditors
The directors' responsibilities
for preparing the annual report and the individual
Company
Financial Statements in accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice) are set out
in the
statement of directors' responsibilities.
Our responsibility
    is to audit the individual Company Financial Statements in accordance with
    relevant United Kingdom legal and regulatory requirements and International
  Standards on Auditing (UK and Ireland).
We report
    to you our opinion as to whether the individual Company Financial
Statements
    give a true and fair view in accordance with the relevant financial reporting
    framework and whether the individual Company Financial Statements have been
    properly prepared in accordance with the Companies Act 1985. We report to
    you if in our opinion
the information given in the directors' report is not consistent with the
individual Company Financial Statements. We also report to you if, in our opinion,
the Company has not kept proper accounting records, if we have not received all
the information and explanations we require for our audit, or if information
specified by law regarding directors' remuneration and other transactions
is not
disclosed.
We read the directors' report and the other information contained in the
annual report for the above year as described in the contents section and consider
the implications for our report if we become aware of any apparent misstatements
or material inconsistencies
with the individual Company Financial Statements.
Basis of audit opinion
We conducted
  our audit in accordance with International Standards on Auditing (UK and Ireland)
  issued by the Auditing Practices Board. An audit includes examination, on a
  test basis, of evidence relevant to the amounts and disclosures in the individual
  Company Financial Statements. It also includes an assessment of the significant
  estimates and judgements made by the directors in the preparation of the individual
  Company
Financial Statements, and of whether the accounting policies are appropriate
  to the Company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence
to give reasonable assurance that the individual Company Financial Statements
are free from material misstatement, whether caused by fraud or other irregularity
or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of
information in the individual Company Financial Statements.
Opinion
In our opinion:
•
the
        individual Company Financial Statements give a true and fair view, in
        accordance with United Kingdom Generally Accepted Accounting Practice,
        of the state of the Company's affairs as at 31 March 2006;
•
the
        individual Company Financial Statements have been properly prepared in
        accordance with the Companies Act 1985; and
•
the
        information given in the directors' report is consistent with the
        Company Financial Statements.
Deloitte & Touche
LLP
Chartered
Accountants and Registered Auditors
London
United Kingdom
30 May 2006
Vodafone
            Group Plc
Annual Report 2006
139
Back to Contents
Contents
Page
Investor Information
140
– Financial
    calendar for the 2007 financial year
140
– Dividends
140
– Telephone
    share dealing
140
– Postal
    share dealing
140
– Registrars
    and transfer office
140
– Online
    shareholder services
141
– Annual
    General Meeting
141
– Corporate
    sponsored nominee service for shareholders
141
– ShareGift
141
– The
    Unclaimed Assets Register
141
– Share
    price history
141
– Markets
142
– Memorandum
    and Articles of Association and Applicable English Law
142
– Documents
    on display
144
– Material
    contracts
144
– Exchange
    controls
144
– Taxation
144
Form 20-F cross reference guide
146
Investor
        information
Financial
  calendar for the 2007 financial year
Annual General Meeting (see below)
25 July 2006
Interim Results announcement
14 November 2006
Preliminary announcement of full year results
23 May 2007
Dividends
Full
  details on the dividend amount per share or ADS can be found on page 38. Set
  out below is information relevant to the final dividend for the year ended
  31 March 2006.
Ex-dividend date
7 June 2006
Record date
9 June 2006
Dividend reinvestment plan election date
14 July 2006
Dividend payment date
4 August 2006
(1)
Note:
(1)
Payment date for both ordinary shares and ADSs.
Dividend payment methods
Holders of ordinary shares can:
•
have cash dividends paid direct to a bank or building society account; or
•
have cash dividends paid in the form of a cheque; or
•
elect to use the cash dividends to purchase more Vodafone shares under the Dividend Reinvestment Plan (see below).
If a holder
  of ordinary shares does decide to receive cash dividends, it is recommended
  that these are paid directly to the shareholder's bank or building society account via
BACS or EFTS. This avoids the risk of cheques being lost in the post and means the dividend will be in the shareholder's
account on the dividend payment date. The shareholder will be sent a tax voucher
confirming the amount of dividend and the
account into which it has been paid.
Please contact the
Company's Registrars for further details.
Holders of ADSs can:
•
have cash dividends paid direct to a bank account; or
•
have cash dividends paid by cheque; or
•
elect to have the dividends reinvested to purchase additional Vodafone ADSs (see below for contact details).
Dividend reinvestment
The Company offers a Dividend Reinvestment Plan which allows holders of ordinary shares who choose to participate to use their cash dividends to acquire additional shares in the
Company. These are purchased on their behalf by the Plan Administrator through a low cost dealing arrangement. Further details can be obtained from the Plan Administrator on +44 (0) 870 702 0198.
For ADS holders, The Bank of New York maintains a Global BuyDIRECT Plan for the
Company, which is a direct purchase and sale plan for depositary receipts, with
a dividend reinvestment facility. For additional information, please call toll-free
from within the US on +1 800 233 5601, or write to:
The
        Bank of New York
Shareholder
Relations Department
Global BuyDIRECT
P.O.
Box 1958
Newark
New
Jersey 07101-1958
USA
For calls
    from outside
the US, call +1 212 815 3700.
Please note that this number is not toll-free.
Telephone share dealing
A telephone
  share dealing service with the Company's Registrars is available for holders
  of ordinary shares. The service is available from 8.00 am to 4.30 pm, Monday
  to Friday,
excluding bank holidays, on telephone number +44 (0) 870 703 0084.
Detailed terms and conditions are available on request by calling the above number.
Postal share dealing
A postal share dealing service is available for holders of ordinary shares with 1,000 shares or fewer who want to either increase their holding or sell their entire holding.
Further information
about this service can be obtained from the Company's Registrars on +44
(0) 870 702 0198.
Registrars and transfer office
The Company's
  ordinary share register is maintained by:
Computershare
        Investor
Services PLC
P.O. Box 82
The Pavilions, Bridgwater Road
Bristol BS99 7NH
England
Telephone:
        +44 (0)
870 702 0198 Fax: + 44 (0) 870 703 6101
Email: web.queries@computershare.co.uk
Holders
  of ordinary shares resident in Ireland should contact:
Computershare
        Investor
Services (Ireland) Limited
P.O. Box 9742
Dublin 18
Ireland
Telephone:
        +353 (0)
818 300 999 or Fax: +353 (0) 1 216 3151
Email: web.queries@computershare.ie
Any queries
    about the administration of holdings of ordinary shares, such as change of
    address, change of ownership or dividend payments, should be directed to
    the Company's Registrars at the relevant address or telephone number
    immediately above. Holders of ordinary shares may also check details of their
    shareholding, subject to passing an identity check, on the Registrars' website
  at www.computershare.com
The Depositary Bank
for the Company's ADR programme is:
The
        Bank of New York
Investor
Relations Dept, P.O. Box 11258
Church St. Station
New York, NY 10286-1258
USA
Telephone:
      +1 (800) 233 5601 (Toll free)
ADS holders
    should address any queries or instructions regarding their holdings to The
    Bank of New York at the above address or telephone number. ADS holders can
    also, subject to passing an identity check, view their account balances and
    transaction history, sell shares and request certificates from their Global
  BuyDIRECT Plan at www.stockbny.com.
140
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Shareholder
      Information
Online shareholder services
The Company provides a number of shareholder services online at www.vodafone.com/shareholder, where shareholders may:
•
Register to receive electronic shareholder communications. Benefits to shareholders include faster receipt of communications such as annual reports, with cost and
time savings for the Company. Electronic shareholder communications are also more environmentally friendly;
•
View a live webcast of the AGM of the Company on 25 July 2006. A recording will be available to review after that date;
•
View and/or download the Annual Report and the Annual Review & Summary Financial Statement 2006;
•
Check the current share price;
•
Calculate dividend payments; and
•
Use interactive tools to calculate the value of shareholdings, look up the historic price on a particular date and chart Vodafone ordinary share price changes
against indices.
Shareholders and other interested parties can also receive Company press releases,
including London Stock Exchange announcements, by registering for Vodafone News
via the
Company's website at www.vodafone.com/news.
Registering for Vodafone News will enable users to:
•
be alerted by free SMS as soon as news breaks;
•
access the latest news from their mobile; and
•
have news automatically e-mailed to them.
Annual General Meeting
The twenty-second AGM of the Company will be held at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1 on 25 July 2006 at 11.00 a.m. or, if later, on
conclusion of the Extraordinary General Meeting to be held immediately before it at 10.45 a.m.
The Notice of Meeting, together with details of the business to be conducted
at the Meeting, is being circulated to shareholders with this Annual Report or
the Annual Review & Summary Financial Statement and can be viewed at the
Company's website – www.vodafone.com/agm.
The AGM will be transmitted
via a live webcast and can be viewed at the Company's website – www.vodafone.com/agm – on
the day of the meeting and a recording will be available to review after that
date.
To find out more about the AGM and how to view the webcast, visit www.vodafone.com/agm.
Corporate sponsored nominee service for shareholders
Subject to
  changes to the Company's Articles of Association being approved at the Annual General Meeting on 25 July 2006, the Company intends to establish a Corporate Nominee
Service for Shareholders, which would be operated by the Company's Registrar. The service provides a facility for shareholders to remove their shares from the Vodafone Group Plc share register and hold them, together with other shareholders
through a nominee. There would be no need for a share certificate and, in addition, shareholders' details
will not be held on the main register and so will remain confidential.
Details will be available
frollowing the AGM on the Company's website at www.vodafone.com/shareholder.
ShareGift
The Company supports ShareGift, the charity share donation scheme (registered charity number 1052686). Through ShareGift, shareholders who have only a very small number of shares
which might be considered uneconomic to sell are able to donate them to charity. Donated shares are aggregated and sold by ShareGift, the proceeds being passed on to a wide range of UK charities. Donating shares to charity gives rise neither to a
gain nor a loss for UK Capital Gains purposes and UK taxpayers may also be able to claim income tax relief on the value of the donation.
ShareGift transfer
forms specifically for the Company's shareholders are available from the
Company's Registrars, Computershare Investor Services PLC and, even if the
share certificate has been lost or destroyed, the gift can be completed. The
service is generally free. However, there may be an indemnity charge for a lost
or destroyed share certificate where the value of the shares exceeds £100.
Further details about ShareGift can be obtained from its website at www.ShareGift.org
or at 5 Lower Grosvenor Place, London SW1W 0EJ (telephone: +44 (0) 20 7828 1151).
The Unclaimed Assets Register
The Company participates in the Unclaimed Assets Register, which provides a search facility for financial assets which may have been forgotten and which donates a proportion of its
public search fees to a group of three UK charities (Age Concern, NSPCC and Scope). For further information, contact The Unclaimed Assets Register, Garden Floor, Bain House, 16 Connaught Place, London W2 2ES (telephone: +44 (0) 870 241 1713), or
visit its website at www.uar.co.uk.
Share price history
Upon flotation of the Company on 11 October 1988, the ordinary shares were valued at 170 pence each. On 16 September 1991, when the Company was finally demerged, for UK taxpayers the
base cost of Racal Electronics Plc shares was apportioned between the Company and Racal Electronics Plc for Capital Gains Tax purposes in the ratio of 80.036% and 19.964% respectively. Opening share prices on 16 September 1991 were 332 pence for
each Vodafone share and 223 pence for each Racal share.
On 21 July 1994, the Company effected a bonus issue of two new shares for every
one then held and, on 30 September 1999, it effected a bonus issue of four new
shares for every one held at that date. The flotation and demerger share prices,
therefore, may be restated as 11.333 pence and 22.133 pence, respectively.
The share price at 31 March 2006 was 120.50 pence (31 March 2005: 140.50 pence).
The share price on 26 May 2006 was 119.75 pence.
The following tables set out, for the periods indicated, (i) the reported high
and low middle market quotations of ordinary shares on the London Stock Exchange,
(ii) the reported high and low sales prices of ordinary shares on the Frankfurt
Stock Exchange, and (iii) the reported high and low sales prices of ADSs on the
NYSE.
The Company's ordinary shares were traded on the Frankfurt Stock Exchange
from 3 April 2000 until 23 March 2004 and, therefore, information has not been
provided for periods
outside these dates.
Five year data on an annual basis
London Stock
Frankfurt
Exchange
Stock Exchange
NYSE
Pounds per
Euros per
Dollars
ordinary share
ordinary share
per ADS
Financial Year
High
Low
High
Low
High
Low
2001/2002
2.29
1.24
3.70
2.00
33.26
17.88
2002/2003
1.31
0.81
2.15
1.26
20.30
12.76
2003/2004
1.50
1.12
2.22
1.59
27.88
18.10
2004/2005
1.49
1.14
–
–
28.54
20.83
2005/2006
1.55
1.09
–
–
28.04
19.32
Two year data on a quarterly basis
London Stock
Exchange
NYSE
Pounds per
Dollars
ordinary share
per ADS
Financial Year
High
Low
High
Low
2004/2005
First Quarter
1.44
1.21
25.90
21.87
Second Quarter
1.34
1.14
24.21
20.83
Third Quarter
1.49
1.32
28.54
24.06
Fourth Quarter
1.46
1.35
27.53
25.60
2005/2006
First Quarter
1.47
1.34
26.87
24.32
Second Quarter
1.55
1.36
28.04
23.90
Third Quarter
1.52
1.23
26.65
21.29
Fourth Quarter
1.33
1.09
23.39
19.32
2006/2007
First Quarter
(1)
1.30
1.14
24.23
21.07
Note:
(1)
Covering
    period up to 26 May 2006.
Vodafone
            Group Plc
Annual Report 2006
141
Back to Contents
Investor information
continued
Six month data on a monthly basis
London Stock
Exchange
NYSE
Pounds per
Dollars
ordinary share
per ADS
Financial Year
Hig
h
Low
High
Low
November 2005
1.52
1.25
26.65
21.55
December 2005
1.29
1.23
22.66
21.29
January 2006
1.33
1.18
23.39
20.86
February 2006
1.25
1.09
21.81
19.32
March 2006
1.30
1.12
22.74
19.55
April 2006
1.30
1.21
23.70
21.07
May 2006
(1)
1.30
1.14
24.23
21.53
Note:
(1)
High
    and low share prices for May 2006 only reported until 26 May 2006.
The
        current authorised share capital comprises 78,000,000,000 ordinary shares
        of $0.10
each and 50,000 7% cumulative fixed rate shares of £1.00 each.
Markets
Ordinary
shares of Vodafone Group Plc are traded on the London Stock Exchange and, in
the form of ADSs, on the New York Stock Exchange.
ADSs, each representing ten ordinary shares, are traded on the New York Stock
Exchange under the symbol 'VOD'. The ADSs are evidenced by ADRs issued
by The Bank of New York, as Depositary, under a Deposit Agreement, dated as of
12 October 1988, as amended and restated as of 26 December 1989, as further amended
and restated as of 16 September 1991 and as further amended and restated as of
30 June 1999, between the Company, the Depositary and the holders from time to
time of ADRs issued thereunder.
ADS holders are not members of the Company but may instruct The Bank of New York
on the exercise of voting rights relative to the number of ordinary shares represented
by their ADSs.
See "Memorandum and Articles of Association and Applicable English Law –Rights
attaching to the Company's shares – Voting rights" below.
Shareholders at 31 March 2006
Number of
% of total
ordinary shares
Number of
issued
held
accounts
shares
1 – 1,000
439,814
0.19
1,001 – 5,000
102,534
0.33
5,001– 50,000
28,540
0.57
50,001 – 100,000
1,451
0.15
100,001– 500,000
1,292
0.45
More than 500,000
1,937
98.31
575,568
100.00
Geographical analysis of shareholders
At
31 March 2006, approximately 52.68% of the Company's shares were held in
the UK, 32.04% in North America, 12.86% in Europe (excluding the UK) and 2.42%
in the Rest of the
World.
Major shareholders
The
Bank of New York, as custodian of the Company's ADR programme, held approximately 12.8% of the Company's
ordinary shares of $0.10 each at 26 May 2006 as nominee. The total number of
ADRs outstanding at 26 May 2006 was 773,146,523. At this date, 1,147 holders
of record of ordinary shares had registered addresses in the United States and
in total held approximately 0.006% of the ordinary shares of the Company. As
at 26 May 2006, the following percentage interests in the ordinary share capital
of the Company, disclosable under Part VI of the Companies Act 1985, have been
notified to the directors:
Shareholder
Shareholding
The Capital Group Companies, Inc.
5.56%
Barclays PLC
3.92%
Legal & General Investment Management
3.67%
The rights attaching to the ordinary shares of the Company held by these shareholders are identical in all respects to the rights attaching to all the ordinary shares of the Company.
  The directors are not aware, as at 26 May 2006, of any other interest of 3% or more in the ordinary share capital of the Company. The Company is not directly or indirectly owned or controlled by any foreign government or any other legal entity.
  There are no arrangements known to the Company that could result in a change of control of the Company.
Memorandum
    and Articles of Association and Applicable
English law
The following
    description summarises certain provisions of the Company's Memorandum
    and Articles of Association and applicable English law. This summary is qualified
    in its entirety by reference to the Companies Act 1985 of Great Britain (the
    "Companies Act"), as amended, and the Company's Memorandum
    and Articles of Association. Information on where shareholders can obtain
    copies of the Memorandum and Articles of Association is provided under "Documents
    on Display".
All of the Company's ordinary shares are fully paid. Accordingly, no further
contribution of capital may be required by the Company from the holders of such
shares.
English law specifies that any alteration to the Articles of Association must
be approved by a special resolution of the shareholders.
The Company's Objects
The
Company is a public limited company under the laws of England and Wales. The
Company is registered in England and Wales under the name Vodafone Group Public
Limited Company, with
the registration number 1833679. The Company's objects are set out in the fourth clause of its Memorandum of Association and cover a wide range of activities, including to carry on the business of a holding company, to carry on business as
dealers in, operators, manufacturers, repairers, designers, developers, importers and exporters of electronic, electrical, mechanical and aeronautical equipment of all types as well as to carry on all other businesses necessary to attain the
Company's objectives. The Memorandum of Association grants the Company a
broad range of powers to effect its objects.
Directors
The
Company's Articles of Association provide for a Board of directors, consisting
of not fewer than three directors, who shall manage the business and affairs
of the
Company.
Under the Company's Articles of Association, a director cannot vote in respect
of any proposal in which the director, or any person connected with the director,
has a material
interest other than by virtue of the director's interest in the Company's
shares or other securities. However, this restriction on voting does not apply
to resolutions (a) giving the director or a third party any guarantee, security
or indemnity in respect of obligations or liabilities incurred at the request
of or for the benefit of the Company, (b) giving any guarantee, security or indemnity
to the director or a third party in respect of obligations of the Company for
which the director has assumed responsibility under an indemnity or guarantee,
(c) relating to an offer of securities of the Company in which the director participates
as a holder of shares or other securities or in the underwriting of such shares
or securities, (d) concerning any other company in which the director (together
with any connected person) is a shareholder or an officer or is otherwise interested,
provided that the director (together with any connected person) is not interested
in
1% or more of any class of the company's equity share capital or the voting
rights available to its shareholders, (e) relating to the arrangement of any
employee benefit in which the director will share equally with other employees
and (f) relating to any insurance that the Company purchases or renews for its
directors or any group of people, including directors.
The directors are empowered to exercise all the powers of the Company to borrow
money, subject to the limitation that the aggregate amount of all liabilities
and obligations of the Group outstanding at any time shall not exceed an amount
equal to 1.5 times the aggregate of the Group's share capital and reserves
calculated in the manner prescribed in the Articles of Association, unless sanctioned
by an ordinary resolution
of the Company's shareholders.
In accordance with the Company's Articles of Association, directors retiring
at each AGM are those last elected or re-elected at or before the AGM held in
the third calendar year before the current year. In 2005, the Company reviewed
its policy regarding the retirement and re-election of directors and, although
it is not intended to amend the Company's Articles in this regard, the Board
has decided, in the interests of good corporate governance, that all the directors
should offer themselves for re-election annually. Accordingly, all the directors
will submit themselves for re-election at the 2006 AGM, except for Lord MacLaurin
of Knebworth, Sir Julian Horn-Smith,
Paul Hazen and Penny Hughes, who are retiring.
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    Group Plc
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Shareholder
          Information
No person
      is disqualified from being a director or is required to vacate that office
      by reason of age. If, at a general meeting, a director who is 70 or more
      years of age is proposed
  for election or re-election, that director's age must be set out in the
  notice of the meeting.
Directors are not
required, under the Company's Articles, to hold any shares of the
Company
as a qualification to act as a director, although executive directors participating
in long term
incentive plans must comply with the Company's share ownership guidelines.
In accordance with best practice in the UK for corporate governance, compensation
awarded to executive directors is decided by a remuneration committee consisting
exclusively of non-executive directors.
In addition, as required
by The Directors' Remuneration Report Regulations, the Board has, since
2003, prepared a report to shareholders on the directors' remuneration which
complies with the Regulations (see pages 61 to 69). The report is also subject
to a shareholder vote.
Rights attaching to the Company's shares
Dividend rights
Holders
of the Company's ordinary shares may by ordinary resolution declare dividends
but may not declare dividends in excess of the amount recommended by the directors.
The Board of directors may also pay interim dividends. No dividend may be paid
other than out of profits available for distribution. Dividends on ordinary shares
will be announced in pounds sterling. Holders of ordinary shares with a registered
address in a euro-zone country (defined, for this purpose, as a country that
has adopted the euro as its national currency) will receive their dividends in
euro, exchanged from pounds sterling at a rate fixed by the Board of directors
in accordance with the Articles of Association. Dividends for ADS holders represented
by ordinary shares held by the Depositary will be paid to the Depositary in US
dollars, exchanged from pounds sterling at a rate fixed by the directors in accordance
with the Articles of Association, and the Depositary will distribute them to
the ADS holders.
If a dividend has not been claimed for one year after the later of the resolution
passed at a general meeting declaring that dividend or the resolution of the
directors providing for payment of that dividend, the directors may invest the
dividend or use it in some other way for the benefit of the Company until the
dividend is claimed. If the dividend remains unclaimed for 12 years after the
relevant resolution either declaring that dividend or providing for payment of
that dividend, it will be forfeited and belong to the Company.
Voting rights
The
Company's Articles of Association provide that voting on Substantive Resolutions
(i.e. any resolution which is not a Procedural Resolution) at a general meeting
shall be decided on a poll. On a poll, each shareholder who is entitled to vote
and is present in person or by proxy has one vote for every share held. Procedural
Resolutions (such as a resolution to adjourn a General Meeting or a resolution
on the choice of Chairman of a General Meeting) shall be decided on a show of
hands, where each shareholder who is present at the meeting has one vote regardless
of the number of shares held, unless a poll is demanded. In addition, the Articles
of Association allow persons appointed as proxies of shareholders entitled to
vote at general meetings to vote on a show of hands, as well as to vote on a
poll and attend and speak at general meetings. Holders of the Company's
ordinary shares do not have cumulative
voting rights.
Under English law, two shareholders present in person constitute a quorum for
purposes of a general
meeting, unless a company's articles of association specify otherwise. The
Company's Articles of Association do not specify otherwise, except that
the shareholders do not need to be present in person, and may instead be present
by proxy, to constitute a quorum.
Under English law, shareholders of a public company such as the Company are not
permitted to pass resolutions by written consent.
Record holders of
the Company's ADSs are entitled to attend, speak and vote on a poll or a
show of hands at any general meeting of the Company's shareholders by the
Depositary's appointment of them as corporate representatives with respect
to the underlying ordinary shares represented by their ADSs. Alternatively, holders
of ADSs are entitled to vote by supplying their voting instructions to the Depositary
or its nominee, who will vote the ordinary shares underlying their ADSs in accordance
with their instructions.
Employees are able to vote any shares held under the Vodafone Group Share Incentive
Plan and "My ShareBank" (a vested share account) through the respective
plan's
trustees, Mourant ECS Trustees Limited.
Liquidation rights
In
the event of the liquidation of the Company, after payment of all liabilities
and deductions in
accordance with English law, the holders of the Company's 7% cumulative
fixed rate shares would be entitled to a sum equal to the capital paid up on
such shares,
together
    with certain dividend payments, in priority to holders of the Company's
    ordinary shares. The holders of the fixed rate shares do not have any other
  right to share in the Company's surplus assets.
Pre-emptive rights and new issues of shares
Under
Section 80 of the Companies Act, directors are, with certain exceptions, unable
to allot relevant securities without the authority of the shareholders in a general
meeting. Relevant
securities as defined in the Companies Act include the Company's ordinary
shares or securities convertible into the Company's ordinary shares. In
addition, Section 89 of the Companies Act imposes further restrictions on the
issue of equity securities (as defined in the Companies Act, which include the
Company's ordinary shares and securities convertible into ordinary shares)
which are, or are to be, paid up wholly in cash and not first offered to existing
shareholders.
The Company's Articles of Association allow shareholders to authorise directors
for a period up to five years to allot (a) relevant securities generally up to
an amount fixed by the shareholders and (b) equity securities for cash other
than in connection with a rights issue up to an amount specified by the shareholders
and free of the restriction in Section 89. In accordance with institutional investor
guidelines, the amount of relevant securities to be fixed by shareholders is
normally restricted to one third of the existing issued ordinary share capital,
and the amount of equity securities to be issued for cash other than in connection
with a rights issue is restricted to 5% of the existing issued ordinary share
capital.
Disclosure of interests in the Company's shares
There are
  no provisions in the Articles of Association whereby persons acquiring, holding
  or disposing of a certain percentage of the Company's shares are required
  to make disclosure of their ownership percentage, although such requirements
  exist under the Companies Act.
The basic disclosure requirement under Sections 198 to 211 of the Companies Act
imposes upon a person interested in the shares of the Company a statutory obligation
to provide written notification to the Company, including certain details as
set out in the Companies Act, where:
(a)
he
       acquires (or becomes aware that he has acquired) or ceases to have (or
       becomes aware that he has ceased to have) an interest in shares comprising
    any class of the Company's issued and voting share capital; and
(b)
as a result, EITHER he obtains, or ceases to have:
(i)
a "material interest" in
    3%, or more; or
(ii)
an
       aggregate interest (whether "material" or not) in 10%, or more of the Company's
    voting capital; or
(iii)
the
      percentage of his interest in the Company's voting capital remains
    above the relevant level and changes by a whole percentage point.
A "material
    interest" means, broadly, any beneficial interest (including those of
    a spouse or a child or a step-child (under the age of 18), those of a company
    which is accustomed to act
in accordance with the relevant person's instructions or in which one third
or more of the votes are controlled by such person and certain other interests
set out in the Companies Act) other than those of an investment manager or an
operator of a unit trust/recognised scheme/collective investment scheme/open-ended
investment company.
Sections
      204 to 206 of the Companies Act set out particular rules of disclosure
    where two or more parties (each a "concert party") have entered
    into an agreement to acquire interests in shares of a public company, and
    the
      agreement imposes obligations/restrictions on any concert party with respect
      to the use, retention or disposal of the shares in the company and an acquisition
  of shares by a concert party pursuant to the agreement has taken place.
Under Section
    212 of the Companies Act, the Company may by notice in writing require a
    person that the Company knows or has reasonable cause to believe is or was
    during the preceding three years interested in the Company's shares
    to indicate whether or not that is correct and, if that person does or did
    hold an interest in the Company's shares, to provide certain information
    as set out in
the Companies Act.
Sections
    324 to 329 of the Companies Act further deal with the disclosure by persons
    (and
certain members of their families) of interests in shares or debentures of the
companies of which they are directors and certain associated companies.
There are
    additional disclosure obligations under Rule 3 of the Substantial Acquisitions
    Rules where a person acquires 15% or more of the voting rights of a listed
    company or when an acquisition increases his holding of shares or rights
    over shares so as to increase his voting rights beyond that level by a whole
    percentage point. Notification in this case should be to the Company, the
    Panel on Takeovers and Mergers and the UK Listing Authority through one of
    its approved regulatory information services no later than 12 noon on the
business day following the date of the acquisition.
Vodafone
            Group Plc
Annual Report 2006
143
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Shareholder
      Information
Investor information
continued
The City Code on Takeovers and Mergers also contains strict disclosure requirements on all parties to a takeover with regard to dealings in the securities of an offeror or offeree
  company and also on their respective associates during the course of an offer period.
General meetings and notices
Annual general meetings are held at such times and place as determined by the directors of the Company. The directors may also, when they think fit, convene an extraordinary general
meeting of the Company. Extraordinary general meetings may also be convened on requisition as provided by the Companies Act.
An annual general meeting and an extraordinary general meeting called for the
passing of a special resolution need to be called by not less than twenty-one
days' notice in writing and all other extraordinary general meetings by
not less than fourteen days' notice in writing. The directors may determine
that persons entitled to receive notices of meetings are those persons entered
on the register at the close of business on a day determined by the directors
but not later than twenty-one days before the date the relevant notice is sent.
The notice may also specify the record date, which shall not be more than forty-eight
hours before the time fixed for
the
meeting.
Shareholders must provide the Company with an address or (so far as the Companies
Act allows) an electronic address or fax number in the United Kingdom in order
to be entitled
to
receive notices of shareholders' meetings and other notices and documents.
In certain circumstances, the Company may give notices to shareholders by advertisement
in newspapers in the United Kingdom. Holders of the Company's ADSs are entitled
to receive notices under the terms of the Deposit Agreement
relating to the ADSs.
Under Section 366
of the Companies Act 1985 and the Company's Articles of
Association,
the annual general meeting of shareholders must be held each calendar year with
no more than fifteen months elapsing since the date of the preceding annual general
meeting.
Variation of rights
If, at any
  time, the Company's share capital is divided into different classes of
  shares, the rights attached to any class may be varied, subject to the provisions
  of the Companies Act, either with the consent in writing of the holders of
  three fourths in nominal value of the shares of that class or upon the adoption
  of an extraordinary resolution passed at a separate meeting of the holders
  of the shares of that
class.
At every such separate meeting, all of the provisions of the Articles of Association
relating to proceedings at a general meeting apply, except that (a) the quorum
is to be the number of persons (which must be at least two) who hold or represent
by proxy not less than one-third in nominal value of the issued shares of the
class or, if such quorum is not present on an adjourned meeting, one person who
holds shares of the class regardless of the number of shares he holds, (b) any
person present in person or by proxy may demand a poll, and (c) each shareholder
will have one vote per share held in that particular class in the event a poll
is taken.
Class rights are deemed not to have been varied by the creation or issue of new
shares ranking equally with or subsequent to that class of shares in sharing
in profits or assets of the Company or by a redemption or repurchase of the shares
by the Company.
Limitations on voting and shareholding
There are no
limitations imposed by English law or the Company's Articles of Association on the right of non-residents or foreign persons to hold or vote the Company's
shares other than those limitations that would generally apply to all of the
shareholders.
Documents on display
The Company
is subject to the information requirements of the US Securities and Exchange
Act of 1934 applicable to foreign private issuers. In accordance with these requirements,
the Company files its Annual Report on Form 20-F and other related documents
with the SEC. These documents may be inspected at the SEC's public reference rooms located at 450 Fifth Street, NW Washington, DC 20549. Information on the operation of
the public reference room can be obtained in the US by calling the SEC on +1-800-SEC-0330. In addition, some of the Company's SEC filings, including all those filed on or after 4 November 2002, are available on the SEC's website at
www.sec.gov. Shareholders can also obtain copies of the Company's Memorandum and Articles of Association from the Vodafone website at www.vodafone.com or from the Company's
registered office.
Material contracts
At the date
of this Annual Report, the Group is not party to any contracts that are considered
material to the Group's results or operations, except for its $10.9 billion credit
facilities which are discussed under "Financial Position and Resources – Liquidity and Cash Resources".
Exchange controls
There are no
  UK government laws, decrees or regulations that restrict or affect the export
  or import of capital, including but not limited to, foreign exchange controls
  on remittance
  of dividends on the ordinary shares or on the conduct of the Group's operations, except as otherwise set out under "Taxation" below.
Taxation
As this is a complex area, investors should consult their own tax adviser regarding the US federal, state and local, the UK and other tax consequences of owning and disposing of
shares and ADSs in their particular circumstances.
This section describes for a US holder (as defined below), in general terms,
the principal US federal income tax and UK tax consequences of owning shares
or ADSs in the Company as capital assets (for US and UK tax purposes). This section
does not, however, cover the tax consequences for members of certain classes
of holders subject to special rules and holders that, directly or indirectly,
hold 10 per cent or
more of the
Company's voting stock.
A US holder is a beneficial owner of shares or ADSs that is for US federal income
tax purposes:
(i)
a citizen or resident of the United States;
(ii)
a US domestic corporation;
(iii)
an
      estate the income of which is subject to US federal income tax regardless
      of its source; or
(iv)
a
      trust if a US court can exercise primary supervision over the trust's
      administration and one or more US persons are authorised to control all
      substantial
decisions of the trust.
This section is based on the Internal Revenue Code of 1986, as amended, its legislative
history, existing and proposed regulations thereunder, published rulings and
court decisions, and on the tax laws of the United Kingdom and the Double Taxation
Convention between
the United States and the United Kingdom (the "Treaty"), all as currently
in effect. These laws are subject to change, possibly on a retroactive
basis.
This section is further based in part upon the representations of the Depositary
and assumes that each obligation in the Deposit Agreement and any related agreement
will be performed
in accordance with its terms.
Based on this assumption, for purposes of the Treaty and the US-UK double taxation
convention relating
to estate and gift taxes (the "Estate Tax Convention"), and for US
federal income tax and UK tax purposes, a holder of ADRs evidencing ADSs will
be treated as the owner of the shares in the Company represented by those ADSs.
Generally, exchanges of shares for ADRs, and ADRs for shares, will not be subject
to US federal income tax or to UK tax, other than stamp duty or stamp duty reserve
tax (see the section on these taxes below).
Taxation of dividends
UK taxation
Under
current UK tax law, no withholding tax will be deducted from dividends paid by
the Company.
A shareholder that is a company resident for UK tax purposes in the United Kingdom
will not be taxable on a dividend it receives from the Company. A shareholder
in the Company who is an individual resident for UK tax purposes in the United
Kingdom is entitled, in calculating their liability to UK income tax, to a tax
credit on cash dividends paid on shares in the Company or ADSs, and the tax credit
is equal to one-ninth of the
cash dividend.
US federal income taxation
A
US holder is subject to US federal income taxation on the gross amount of any
dividend paid by the Company out of its current or accumulated earnings and profits
(as determined for US federal income tax purposes). Dividends paid to a non-corporate
US holder in tax years beginning before 1 January 2009 that constitute qualified
dividend income will be taxable to the holder at a maximum tax rate of 15%, provided
that the ordinary shares or ADSs are held for more than 60 days during the 121
day period beginning 60 days before the ex-dividend date and the holder meets
other holding period requirements. Dividends paid by the Company with respect
to the shares or ADSs
will generally be qualified dividend income.
A US holder is not subject to a UK withholding tax. The US holder includes in
gross income for US federal income tax purposes only the amount of the dividend
actually received from the Company, and the receipt of a dividend does not entitle
the US holder to a foreign tax credit.
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    Group Plc
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Shareholder
      Information
Dividends
    must be included in income when the US holder, in the case of shares, or
    the Depositary, in the case of ADSs, actually or constructively receives
    the dividend
    and will not be eligible for the dividends-received deduction generally allowed
    to US corporations in respect of dividends received from other US corporations.
    Dividends will be income from sources outside the United States. Dividends
    paid in taxable years
  beginning before 1 January 2007 generally will be "passive" or "financial services" income, and dividends paid in taxable years beginning after 31 December 2006 generally will be "passive" or "general" income,
  which in either case is treated separately from other types of income for the
  purposes of computing any allowable foreign tax credit.
In the case of shares, the amount of the dividend distribution to be included
in income will be the US dollar value of the pound sterling payments made, determined
at the spot pound sterling/US dollar rate on the date of the dividend distribution,
regardless of whether the payment is in fact converted into US dollars. Generally,
any gain or loss resulting from currency exchange fluctuations during the period
from the date the dividend payment is to be included in income to the date the
payment is converted into US dollars will be treated as ordinary income or loss.
Generally, the gain or loss will be income or loss from sources within the United
States for foreign tax
credit limitation purposes.
Taxation of capital gains
UK taxation
A
US holder may be liable for both UK and US tax in respect of a gain on the disposal
of the Company's
shares or ADSs if the US holder is:
(i)
a citizen of the United States resident or ordinarily resident for UK tax purposes in the United Kingdom;
(ii)
a
       citizen of the United States who has been resident or ordinarily resident
       for UK tax purposes in the United Kingdom, ceased to be so resident or
       ordinarily resident for a period of less than 5 years of assessment and
       who disposed of the shares or ADSs during that period (a "Temporary Non-Resident"), unless the shares or ADSs were also acquired during that period, such liability arising on
that individual's return to the UK;
(iii)
a
      US domestic corporation resident in the United Kingdom by reason of being
      centrally managed and controlled in the United Kingdom; or
(iv)
a
      citizen of the United States or a corporation that carries on a trade,
      profession or vocation in the United Kingdom through a branch or agency
      or, in respect of companies, through a permanent establishment and that
      has used the shares or ADSs for the purposes of such trade, profession
      or vocation or has used, held or acquired the shares or ADSs for the purposes
      of such branch or agency or permanent
establishment.
Under the Treaty, capital gains on dispositions of the shares or ADSs are generally
subject to tax only in the country of residence of the relevant holder as determined
under both the laws of the United Kingdom and the United States and as required
by the terms of the Treaty. However, individuals who are residents of either
the United Kingdom or the United States and who have been residents of the other
jurisdiction (the US or the UK, as the case may be) at any time during the six
years immediately preceding the relevant disposal of shares or ADSs may be subject
to tax with respect to capital gains arising from the dispositions of the shares
or ADSs not only in the country of which the holder is a resident at the time
of the disposition but also in that other country (although, in respect of UK
taxation, generally only to the extent that such an individual comprises a Temporary
Non-Resident).
US federal income taxation
A
US holder that sells
or otherwise disposes of the Company's shares or ADSs will recognise a capital
gain or loss for US federal income tax purposes equal to the difference between
the US dollar value of the amount realised and the holder's tax basis, determined
in US dollars, in the shares or ADSs. Generally, a capital gain of a non-corporate
US holder that is recognised before 1 January 2009 is taxed at a maximum rate
of 15%, provided the holder has a holding period of more than one year. The gain
or loss will generally be income or loss from sources within the United States
for foreign tax credit limitation purposes. The deductibility of losses is subject
to limitations.
Additional tax considerations
UK inheritance tax
An
    individual who is domiciled in the United States (for the purposes of the
    Estate Tax Convention) and is not a UK national will not be subject to UK
    inheritance tax in respect of the Company's shares or ADSs on the individual's
    death or on a transfer of the shares or ADSs during the individual's
    lifetime, provided that any applicable US federal gift or estate tax is paid,
    unless the shares or ADSs are part of the business property of a UK permanent
    establishment or pertain to a UK fixed base used for the performance of independent
    personal services. Where the shares or ADSs have been placed in trust by
    a settlor, they may be subject to UK inheritance tax unless, when the trust
    was created, the settlor was domiciled in the United States and was not a
    UK national. Where the shares or ADSs are subject to both UK inheritance
    tax and to US federal gift or estate tax, the Estate Tax Convention generally
    provides a credit against US federal tax liabilities for UK inheritance tax
    paid.
UK stamp duty and stamp duty reserve tax
Stamp
duty will, subject to certain exceptions, be payable on any instrument transferring
shares in the Company to the Custodian of the Depositary at the rate of 1.5%
on the amount or value of the consideration if on sale or on the value of such
shares if not on sale. Stamp duty reserve tax (SDRT), at the rate of 1.5% of
the price or value of the shares, could also be payable in these circumstances,
and on issue to such a person, but no SDRT will be payable if stamp duty equal
to such SDRT liability is paid. In accordance with the terms of the Deposit Agreement,
any tax or duty payable on deposits of shares by the Depositary or the Custodian
of the Depositary will be charged to the party to whom ADSs are delivered against
such deposits.
No stamp duty will be payable on any transfer of ADSs of the Company, provided
that the ADSs and any separate instrument of transfer are executed and retained
at all times outside the
United Kingdom.
A transfer of shares in the Company in registered form will attract ad valorem
stamp duty generally at the rate of 0.5% of the purchase price of the shares.
There is no charge to ad valorem stamp duty on gifts. On a transfer from nominee
to beneficial owner (the nominee having at all times held the shares on behalf
of the transferee) under which no beneficial interest passes and which is neither
a sale nor in
contemplation of a
sale, a fixed £5.00 stamp duty will be payable.
SDRT is generally payable on an unconditional agreement to transfer shares in
the Company in registered form at 0.5% of the amount or value of the consideration
for the transfer, but is repayable if, within six years of the date of the agreement,
an instrument transferring the shares is executed or, if the SDRT has not been
paid, the liability to pay the tax (but not necessarily interest and penalties)
would be cancelled. However, an agreement to transfer the ADSs of the Company
will not give rise to SDRT.
Vodafone
            Group Plc
Annual Report 2006
145
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Form 20-F Cross Reference Guide
Certain of the information in this document that is referenced in the following table is included in the Company's Annual Report on Form 20–F for 2006 filed with the SEC
(the "2006 Form 20–F"). No other information in this document is included in the 2006 Form 20–F or incorporated by reference into any filings by the Company under the US Securities Act of 1933, as amended. Please see
"Documents on display" for information on how to access the 2006 Form 20–F as filed with the SEC. The 2006 Form 20–F has not been approved or disapproved by the SEC nor has the SEC passed judgement upon the adequacy or accuracy
of the 2006 Form 20–F.
Item
Form 20–F caption
Location in this document
Page
1
Identity of Directors, Senior Management
and Advisers
Not applicable
–
2
Offer Statistics and Expected Timetable
Not applicable
–
3
Key Information
3A Selected Financial Data
Financial Highlights
2
Introduction – Foreign Currency Translation
25
3B Capitalisation and indebtedness
Not applicable
–
3C Reasons for the offer and use of proceeds
Not applicable
–
3D Risk Factors
Risk factors, Trends and Outlook – Risk Factors
43
4
Information on the Company
4A History and Development of the Company
Business Overview – History and Development of the Company
19
Investor Information – Contact Details
back cover
4B Business Overview
Business Overview
12
Operating Results – Review of Operations
32
Risk Factors, Trends and Outlook – Trend Information
44
Investor Information – Material Contracts
144
4C Organisational Structure
Note 12 "Principal subsidiary undertakings"
94
Note 13 "Investments in joint ventures"
95
Note 14 "Investments in associated undertakings"
96
Note 15 "Other investments"
96
4D Property, Plant and Equipment
Business Overview – Licences and network infrastructure – Mobile network infrastructure
14
Financial Position and Resources
38
Corporate Responsibility and Environmental Issues – Environmental Issues
60
4A
Unresolved Staff Comments
None
–
5
Operating and Financial Review and Prospects
5A Operating Results
Operating Results
30
Note 24 "Borrowings"
102
Introduction – Inflation
25
5B Liquidity and Capital Resources
Financial Position and Resources – Liquidity and Capital Resources
39
5C Research and Development, Patents and
Licences, etc.
Business Overview – Global Services – Research and Development
19
5D Trend Information
Risk Factors, Trends and Outlook – Trend Information
44
5E Off-balance sheet arrangements
Financial Position and Resources – Liquidity and Capital Resources – Off-balance sheet arrangements
42
Note 30 "Commitments"
116
Note 31 "Contingent liabilities"
117
5F Tabular disclosure of contractual obligations
Financial Position and Resources – Contractual Obligations
39
5G Safe harbor
Cautionary Statement Regarding Forward–Looking Statements
46
6
Directors, Senior Management and Employees
6A Directors and Senior Management
Board of Directors and Group Management
50
6B Compensation
Board's Report to Shareholders on Directors' Remuneration
61
6C Board Practices
Corporate Governance
53
Board's Report to Shareholders on Directors' Remuneration
61
Board of Directors and Group Management
50
6D Employees
Employees
58
Note 34 "Employees"
119
6E Share Ownership
Board's Report to Shareholders on Directors' Remuneration – Directors' interests in the shares of the Company
66
Note 19 "Called up share capital"
98
7
Major Shareholders and Related Party Transactions
7A Major Shareholders
Investor Information – Major shareholders
142
7B Related Party Transactions
Board's Report to Shareholders on Directors' Remuneration
61
Note 36 "Related party transactions"
120
Note 31 "Contingent liabilities"
117
7C Interests of experts and counsel
Not applicable
–
8
Financial Information
8A Consolidated Statements and Other Financial
Consolidated Financial Statements
71
Information
Report of Independent Auditors
131
Note 31 "Contingent liabilities"
117
Financial Position and Resources – Equity Dividends
38
8B Significant Changes
Note 35 "Subsequent events"
119
146
Vodafone
    Group Plc
Annual Report 2006
Back to Contents
Shareholder
      Information
Item
Form 20–F caption
Location in this document
Page
9
The Offer and Listing
9A Offer and listing details
Investor Information – Share Price History
141
9B Plan of distribution
Not applicable
–
9C Markets
Investor Information – Markets
142
9D Selling shareholders
Not applicable
–
9E Dilution
Not applicable
–
9F Expenses of the issue
Not applicable
–
10
Additional Information
10A Share capital
Not applicable
–
10B Memorandum and articles of association
Investor Information – Memorandum and Articles of Association and Applicable English law
144
10C Material contracts
Investor Information – Material Contracts
144
10D Exchange controls
Investor Information – Exchange Controls
144
10E Taxation
Investor Information – Taxation
144
10F Dividends and paying agents
Not applicable
–
10G Statement by experts
Not applicable
–
10H Documents on Display
Investor Information – Documents on Display
144
10I Subsidiary information
Not applicable
–
11
Quantitative and Qualitative Disclosures
About Market Risk
Note
    24 "Borrowings"
102
12
Description of Securities Other than Equity
Securities
Not
    applicable
–
13
Defaults, Dividend Arrearages and
Delinquencies
Not
    applicable
–
14
Material Modifications to the Rights of
Security Holders and Use of Proceeds
Not
    applicable
–
15
Controls and Procedures
Corporate Governance
53
16
16A Audit committee financial expert
Corporate Governance – Committees of the Board – The Audit Committee
55
16B Code of Ethics
Corporate Governance – Introduction – US Listing Requirements
53
16C Principal Accountant Fees and Services
Note 4 "Operating (loss)/profit"
83
Corporate Governance – Auditors
57
16D Exemptions from the Listing Standards for
Audit Committees
Corporate
    Governance – Committees of the Board – The Audit Committee
55
16E Purchase of Equity Securities by the Issuer
and Affiliated Purchasers
Financial
       Position and Resources – Liquidity and Capital Resources – Treasury
    shares
41
Note
    21 "Transactions with equity shareholders"
102
17
Financial Statements
Not applicable
–
18
Financial Statements
Consolidated Financial Statements
71
19
Exhibits
Filed with the SEC
–
Vodafone
            Group Plc
Annual Report 2006
147
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Back to Contents
Back
        to Contents
SIGNATURE
The registrant hereby certifies that it meets all of the requirements for
  filing on Form 20-F and that it has duly caused and authorized the undersigned
  to sign this transition report on its behalf.
VODAFONE GROUP PUBLIC LIMITED COMPANY
(Registrant)
/s/
Arun Sarin
Arun Sarin
Chief Executive
Dated: 14 June 2006
Back
        to Contents
Index to Exhibits to Form
20-F for year ended 31 March 2006
1.
Memorandum, as adopted on June
          13, 1984 and including all amendments made on July 28, 2000 and July
          26, 2005, and Articles of Association, as adopted on June 30, 1999
          and including all amendments made on July 25, 2001 and July 26, 2005,
          of the Company.
2.
Indenture, dated
          as of February 10, 2000, between the Company and Citibank, N.A. as
          Trustee, including forms of debt securities (incorporated by reference
          to Exhibit 4(a) of Amendment No. 1 to the Company's Registration
          Statement on Form F-3, dated November 24, 2000). (File No. 333-10762)).
4.1.
Agreement for US $5,525,000,000
          5 year Revolving Credit Facility (subsequently increased by accession
          of further lenders to US$5,925,000,000), dated 24 June 2004, among,
          inter alia, the Company, ABN Amro Bank N.V.; Banco Bilbao Vizcaya Argentaria
          S.A. ; Bank of America, N.A.; Barclays Bank PLC; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas ; CALYON; Citibank, N.A.; Commerzbank Aktiengesellschaft,
          London Branch; Deutsche Bank AG; HSBC Bank plc; ING Bank, N.V.; JPMorgan
          Chase Bank; Lehman Brothers Bankhaus AG; Lloyds TSB Bank plc; Morgan
          Stanley Dean Witter Bank Limited and Morgan Stanley Bank; Mizuho Corporate
          Bank, Ltd.; National Australia Bank Limited ABN 12 004 044 937; Sumitomo
          Mitsui Banking Corporation Europe Limited; The Bank of Tokyo-Mitsubishi,
          Ltd.; The Royal Bank of Scotland Plc; UBS AG; WestLB AG; Banco Santander
          Central Hispano, S.A.; William Street Commitment Corporation; Banca
          Intesa SpA; KBC Bank NV; Standard Chartered Bank; TD Bank Europe Limited;
          and The Bank of New York with The Royal Bank of Scotland plc as Agent
          and US Swingline Agent
, as amended and restated on 24 June 2005
          by Supplemental Agreement
among, inter alia,the Company, ABN AMRO
          Bank N.V.
;
Banc of America Securities Limited; Banco Bilbao
          Vizcaya Argentaria S.A.; Banco Santander Central Hispano, S.A. London
          Branch; Barclays Capital; Bayerische Hypo-und Vereinsbank AG; BNP Paribas;
          Calyon; Citigroup Global Markets Limited; Commerzbank Aktiengesellschaft,
          London Branch; Deutsche Bank AG London; HSBC Bank Plc; ING Bank N.V.,
          London Branch; JPMorgan Chase Bank, N.A.; J.P. Morgan Plc; Lehman Commercial
          Paper Inc.; Llloyds TSB Bank Plc; Mizuho Corporate Bank, Ltd; Morgan
          Stanley Bank International Limited; National Australia Bank Limited
          ABN 12 004 044 937; Sumitomo Mitsui Banking Corporation Europe Limited;
          The Bank of Tokyo-Mitsubishi, Ltd.; The Royal Bank of Scotland Plc;
          UBS Limited; WestLB AG, London Branch; William Street Commitment Corporation;
          Banca Intesa SpA; KBC Bank NV; Standard Chartered Bank; TD Bank Europe
          Limited; The Bank of New York; ABN AMRO Bank N.V.; Banca Intesa SpA;
          Banco Bilbao Vizvcaya Argentaria S.A.; Banco Bilbao Vizvcaya Argentaria
          S.A. (New York Branch); Banco Santander Central Hispano, S.A. London
          Branch; Bank of America, N.A.; Barclays Bank Plc; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas (London Branch); BNP Paribas (acting through
          its New York Branch); Calyon; Citibank, N.A.; Commerzbank Aktiengesellschaft,
          London Branch; Commerzbank Aktiengesellschaft, New York Branch; Deutsche
          Bank AG London; Deutsche Bank AG New York; HSBC Bank Plc; ING Bank
          N.V., London Branch; JPMorgan Chase Bank, N.A.; KBC Bank NV; Lehman
          Commercial Paper Inc.; Lloyds TSB Bank Plc; Mizuho Corporate Bank,
          Ltd.; Morgan Stanley Bank; Morgan Stanley Bank International Limited;
          National Australia Bank Limited ABN 12 004 044 937; Standard Chartered
          Bank; Sumitomo Mitsui Banking Corporation Europe Limited; TD Bank Europe
          Limited; The Bank of New York; The Bank of Tokyo-Mitsubishi, Ltd.;
          The Royal Bank of Scotland Plc; The Royal Bank of Scotland Plc (New
          York Branch); UBS AG, London Branch; UBS AG, Stamford Branch; UBS Loan
          Finance LLC; WestLB AG, London Branch; WestLB AG, New York Branch;
          William Street Commitment Corporation; and The Royal Bank of Scotland
          Plc with The Royal Bank of Scotland Plc (New York Branch) as Agent
          and U.S. Swingline Agent.
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4.2.
Agreement
            for US$4,675,000,000 7 year Revolving Credit Facility (subsequently
            increased by accession
          of further lenders to US$5,025,000,000), dated June 24, 2005, among,
          inter alia, the Company, Banc of America Securities Limited; Banca
          Intesa SpA; Banco Bilboa Vizcaya Argentaria S.A.; Banco Santander Central
          Hispano, S.A. London Branch; Barclays Capital; Bayerische Hypo-und
          Vereinsbank AG; BNP Paribas; Calyon; Citigroup Global Markets Limited;
          Deutsche Bank AG London; HSBC Bank Plc; ING Bank N.V., London Branch;
          J.P. Morgan Plc; Lehman Commercial Paper Inc., UK Branch; Lloyds TSB
          Bank Plc; Mizuho Corporate Bank, Ltd; Morgan Stanley Bank International
          Limited; National Australia Bank Limited ABN 12 004 044 937; The Bank
          of Tokyo-Mitsubishi, Ltd; The Royal Bank of Scotland Plc; UBS Limited;
          Unicredit Banca d'Impresa SpA; WestLB AG, London Branch; William
          Street Commitment Corporation; Commerzbank Aktiengesellschaft, Filiale
          Düsseldorf; KBC Bank NV; Standard Chartered Bank; TD Bank Europe
          Limited; The Bank of New York; Banca Intesa SpA; Banco Bilbao Vizcaya
          Argentaria S.A.; Banco Bilbao Vizcaya Argentaria S.A. (New York Branch);
          Banco Santander Central Hispano, S.A. London Branch; Bank of America,
          N.A., Barclays Bank Plc; Bayerische Hypo-und Vereinsbank AG; BNP Paribas
          (London Branch); BNP Paribas, New York Branch; Calyon; Citibank, N.A.;
          Commerzbank Aktiengesellschaft, Filiale Düsseldorf; Deustche Bank
          AG London; Deutsche Bank AG New York; HSBC Bank Plc; ING Bank N.V.,
          London Branch; JPMorgan Chase Bank, N.A.; KBC Bank NV; Lehman Commercial
          Paper Inc., UK Branch; Lloyds TSB Bank Plc; Mizuho Corporate Bank,
          Ltd.; Morgan Stanley Senior Funding, Inc.; Morgan Stanley Bank International
          Limited; National Australia Bank Limited ABN 12 004 044 937; Standard
          Chartered Bank; TD Bank Europe Limited; The Bank of New York; The Bank
          of Tokyo-Mitsubishi, Ltd.; The Royal Bank of Scotland Plc; The Royal
          Bank of Scotland Plc (New York Branch); UBS AG, London Branch; UBS
          Loan Finance LLC; Unicredit Banca d'Impresa SpA; WestLB AG, London
          Branch; WestLB AG, New York Branch; William Street Commitment Corporation;
          and The Royal Bank of Scotland plc with The Royal Bank of Scotland
          Plc (New York Branch) as Agent and US Swingline Agent.
4.3.
Vodafone Group Long Term Incentive
          Plan (incorporated by reference to Exhibit 4.5 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2001).
4.4.
Vodafone Group Short Term Incentive
          Plan (incorporated by reference to Exhibit 4.6 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2001).
4.5.
Vodafone Group 1999 Long Term
          Stock Incentive Plan (incorporated by reference to Exhibit 4.7 to the
          Company's Annual Report on Form 20-F for the financial year ended
          March 31, 2001).
4.6.
Vodafone Group 1998 Company Share
          Option Scheme (incorporated by reference to Exhibit 4.8 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2001).
4.7.
Vodafone Group 1998 Executive
          Share Option Scheme (incorporated by reference to Exhibit 4.9 to the
          Company's Annual Report on Form 20-F for the financial year ended
          March 31, 2001).
4.8.
Vodafone Group 2005 Global Incentive
          Plan.
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4.9.
Agreement for Services with Lord
          MacLaurin of Knebworth (incorporated by reference to Exhibit 4.10 to
          the Company's Annual Report on Form 20-F for the financial year
          ended March 31, 2001).
4.10.
Letter of Appointment of Paul
          Hazen (incorporated by reference to Exhibit 4.15 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2003).
4.11.
Service Contract of Arun Sarin
          (incorporated by reference to Exhibit 4.20 to the Company's Annual
          Report on Form 20-F for the financial year ended March 31, 2003).
4.12.
Service Contract of Julian Horn-Smith
          (incorporated by reference to Exhibit 4.10 to the Company's Annual
          Report on Form 20-F for the financial year ended March 31, 2001).
4.13.
Service Contract of Peter Bamford
          (incorporated by reference to Exhibit 4.10 to the Company's Annual
          Report on Form 20-F for the financial year ended March 31, 2001).
4.14.
Service Contract of Thomas Geitner
          (incorporated by reference to Exhibit 4.13 to the Company's Annual
          Report on Form 20-F for the financial year ended March 31, 2005).
4.15.
Service Contract of Kenneth Hydon
          (included in and incorporated by reference to Exhibit 4.10 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2001).
4.16.
Service Contract of Andrew Halford.
4.17.
Letter of Appointment of Sir
          John Bond (incorporated by reference to Exhibit 4.15 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2005).
4.18.
Letter of Appointment of Dr.
          Michael Boskin(incorporated by reference to Exhibit 4.9 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2003).
4.19.
Letter of Appointment of Professor
          Sir Alec Broers, now Lord Broers, (incorporated by reference to Exhibit
          4.10 to the Company's Annual Report on Form 20-F for the financial
          year ended March 31, 2003; at a meeting of the Directors of the Company
          held on September 16, 2003, the term of office of Professor Sir Alec
          Broers was extended until December 31, 2006).
4.20.
Letter of Appointment of Dr.
          John Buchanan(incorporated by reference to Exhibit 4.11 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2003).
4.21.
Letter of Appointment of Penelope
          Hughes(incorporated by reference to Exhibit 4.17 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2003;
          at a meeting of the Directors of the Company held on September 16,
          2003, the term of office of Penelope Hughes was extended until August
          31, 2007).
4.22.
Letter of Appointment of Anne
          Lauvergeon.
4.23.
Letter of Appointment of Sir
          David Scholey (incorporated by reference to Exhibit 4.21 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31, 2003;
          at a meeting of the Directors of the Company held on September 16,
          2003, the term of office of Sir David Scholey was extended until the
          Annual General Meeting of the Company in 2005).
Back to Contents
4.24.
Letter of Appointment of Jurgen
          Schrempp (incorporated by reference to Exhibit 4.21 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31,
          2004).
4.25.
Letter of Appointment of Luc
          Vandevelde (incorporated by reference to Exhibit 4.22 to the Company's
          Annual Report on Form 20-F for the financial year ended March 31,
          2004).
4.26.
Letter of Appointment of Anthony
          Watson.
4.27.
Letter of Appointment of Philip
          Yea.
7.1
Computation of
          the ratio of earnings to fixed charges for the years ended 31 March
          2006 and 2005.
7.2
Computation
            of the ratio of earnings to fixed charges for the years ended 31
            March
          2004, 2003 and 2002.
8.
The list of the Company's
          subsidiaries is incorporated by reference to note 12 to the Consolidated
          Financial Statements included in the Annual Report.
12.
Rule
          13a – 14(a)
        Certifications.
13.
Rule
    13a – 14(b) Certifications.
15.
Consent
          of Deloitte & Touche
        LLP.