Vodafone Group Plc Annual Report 2025 5
Strategic report
Governance
Financials
Other information
Operating in a rapidly changing industry
Our governance Governance
Mega trends Connected devices – The world is becoming more connected, driven by new devices across all sectors. This connectivity extends beyond smartphones to various IoT devices – IoT devices are increasingly used in consumer and business applications. As their number grows, physical assets communicate in real-time, establishing new digital markets – This leads to the Economy of Things, where devices trade securely on a user’s behalf without human intervention, offering businesses opportunities to transform goods into tradeable digital assets for new online markets
Principal risks and uncertainties Risks are not static and as the environment changes, so do risks – some diminish or increase, while new risks appear. We continuously review and improve our risk processes in order to ensure that the Company has the appropriate level of support in meeting its strategic objectives. Our risk framework clearly defines roles and responsibilities, and sets out a consistent end-to- end process for identifying and managing risks. We have embedded the risk framework across the Group as this allows us to take a holistic approach and to make meaningful comparisons. Our approach is continuously enhanced, enabling more dynamic risk detection and use of data, all of which are improving our risk visibility and our responses. Our Board oversees principal and emerging risks , which are reported to the various management committees and the Board throughout the year. Additionally, risk owners are invited to present in-depth reviews to ensure that risks are continuously monitored, and appropriate treatment plans are implemented to bring each risk within an acceptable tolerance level. Read more on pages 55 to 60 Watch our privacy and cyber experts explain how we protect customer data and our networks: investors.vodafone.com/videos This has been another good year for innovation at Vodafone with 161 new patent applications, bringing the size of our patent portfolio to over 3,200. Our research teams in Düsseldorf and Newbury have developed telecommunications standards and new solutions to improve our network. Our R&D hubs in Malaga and Dresden have further developed our technology in Open RAN, IoT, and AI solutions.
Generative artificial intelligence (‘Gen AI’) – Gen AI adoption has surged, with 65% of organisations using it in at least one business function, nearly double from the previous year – Common use cases include AI-generated recommendations, hyper-personalised marketing content, and software development. Enterprises are investing in Gen AI for customer service chatbots, automated IT testing, and content generation – These applications are expected to drive efficiency and profitability, enhancing customer interactions and operational processes. The technology is poised to create disruptive changes across industries, boosting productivity and opening new business opportunities Learn more about how Vodafone works with artificial intelligence (‘AI’): investors.vodafone.com/artificial-intelligence Adoption of cloud technology – Significant investment in cloud technology by large tech companies has led to advanced centralised data storage and remote processing capabilities – Corporates are adopting multi-cloud solutions for more flexibility and reduced risk. Smaller businesses are transitioning too, often needing network operator assistance – Demand for fast, secure connectivity with low latency is driving cloud adoption. AI and edge computing will enhance cloud capabilities, crucial for digital transformation Watch our Vodafone Technology investor briefing: investors.vodafone.com/vtbriefing
The Board held seven scheduled meetings this year. Discussion focused on strategy, including the turnaround plan in Germany, business developments and financial performance, purpose and culture, our people and stakeholder interests, in view of our three strategic priorities. The Nominations and Governance Committee monitors the composition, size and structure of the Board and its Committee to ensure that there is an appropriate balance of skills, knowledge, experience and diversity so that responsibilities can be discharged effectively. The Audit and Risk Committee oversees the governance of the Group’s risk management system, financial reporting, the external audit process, internal control and related assurance processes. The Technology Committee supports the Board with fulfilling the technology strategy for the Group, including assessing risks and exploring new innovations for future growth. The ESG Committee oversees our Environmental, Social and Governance (‘ESG’) programme, including our purpose, sustainability and responsible business practices, and our contribution to the societies we operate in under our social contract. The Remuneration Committee advises the Board on policies for executive remuneration and reward packages for the Chair, executives and senior management team. Read more on pages 67 to 93 Watch our Non-Executive Directors speak about their roles in short video interviews: investors.vodafone.com/videos
Read more about our partnership with Microsoft: investors.vodafone.com/microsoft-strategic- partnership Watch our Vodafone Business investor briefing: investors.vodafone.com/vbbriefing
Digital payments – Businesses in Europe are migrating sales channels online, driving demand for mobile enabled payment services and reliable connectivity. Consumers are shifting from cash to digital payments via mobile phones and smartwatches – In Africa, digital payments are primarily conducted via mobile phones through networks owned by operators – Rising smartphone penetration drives mobile payment adoption, enabling operators and FinTech start-ups to offer services like insurance, loans, and e-commerce, improving financial inclusion in underserved areas
Watch our Digital Services investor briefing: investors.vodafone.com/digital-services
Powered by FlippingBook