Consolidated income statementfor the years ended 31 March

2013 2012 2011 Note m m m

Revenue A2 44,445 46,417 45,884Cost of sales (30,505) (31,546) (30,814)Gross profit 13,940 14,871 15,070Selling and distribution expenses (3,258) (3,227) (3,067)Administrative expenses (5,199) (5,075) (5,300)Share of result in associates 15 6,477 4,963 5,059Impairment losses 12 (7,700) (4,050) (6,150)Other income and expense 11 468 3,705 (16)Operating profit 3 4,728 11,187 5,596Non-operating income and expense 11 10 (162) 3,022Investment income 6 305 456 1,309Financing costs 6 (1,788) (1,932) (429)Profit before taxation 3,255 9,549 9,498Income tax expense 7 (2,582) (2,546) (1,628)Profit for the financial year 673 7,003 7,870

Attributable to: Equity shareholders 429 6,957 7,968 Non-controlling interests 244 46 (98) 673 7,003 7,870

Basic earnings per share 8 0.87p 13.74p 15.20p

Diluted earnings per share 8 0.87p 13.65p 15.11p

Consolidated statement of comprehensive incomefor the years ended 31 March

2013 2012 2011 m m m

(Losses)/gains on revaluation of available-for-sale investments, net of tax (73) (17) 310Foreign exchange translation differences, net of tax 362 (3,673) (2,132)Net actuarial (losses)/gains on defined benefit pension schemes, net of tax (198) (272) 136Foreign exchange losses/(gains) transferred to the income statement 1 (681) (630)Fair value gains transferred to the income statement (12) (2,192)Other, net of tax (4) (10) 19Other comprehensive income/(loss) 76 (4,653) (4,489)Profit for the financial year 673 7,003 7,870Total comprehensive income for the year 749 2,350 3,381

Attributable to: Equity shareholders 604 2,383 3,567 Non-controlling interests 145 (33) (186) 749 2,350 3,381

The accompanying notes are an integral part of these consolidated financial statements.

90 Vodafone Group Plc Annual Report 2013

Commentary on the consolidated income statement and statement of comprehensive incomeThe consolidated income statement includes the majority of our income and expenses for the year with the remainder recorded in the statement of comprehensive income.Further details on the major movements in the year are set out below:

RevenueRevenue fell by 4.2% to 44.4 billion. The decrease was primarily due to the negative impact of adverse foreign exchange rate movements, as much of the Groups revenue is generated in currencies other than sterling, and the challenging economic conditions in southern Europe. Our operating results on pages 40 to 44 explain in more detail the geographical split of our revenue.

Share of result in associatesShare of results in associates increased 30.5% to 6.5 billion. Thisis primarily due to the strong performance of VZW, in which we have a 45% interest. For more information on what has driven thegrowth at VZW, see page 44.

Impairment lossesAn impairment loss of 7.7 billion was recorded in relation to Italy and Spain, primarily driven by adverse performance against previous plans and adverse movements in discount rates. Note 12 provides more information on how we test for impairment.

Other income and expense Other income and expense has decreased from a gain of 3.7 billion in the prior year to a gain of 0.5 billion this year. The decrease is primarily due to the 3.7 billion gain on disposal of the Groups 44% interest in SFR and 24.4% interest in Polkomtel recognised in the prior year, whereas in the current year we recognised a gain on acquisition of CWW of 0.5 billion. Note 11 provides more information on our acquisitions and disposals.

Income tax expenseOur income tax expense was stable at 2.6 billion. Our adjusted effective tax rate, a non-GAAP measure used by management to measure the rate of tax on our adjusted profit before tax, continued to be in the midtwenties range and is calculated as set out below.

2013 2012 m m

Income tax expense 2,582 2,546Tax on adjustments to derive adjusted profit before tax 12 (242)Adjusted income tax expense 2,594 2,304Share of associates tax 11 302Adjusted income tax expense for calculating adjusted tax rate 2,605 2,606

Profit before tax 3,255 9,549Adjustments to derive adjusted profit before tax1 7,273 369Adjusted profit before tax 10,528 9,918Add: Share of associates tax and non-controlling interest 105 382Adjusted profit before tax for calculating adjusted effective taxrate 10,633 10,300

Adjusted effective tax rate 24.5% 25.3%

Note:1 See Earnings per share opposite.

The Groups share of associates tax has fallen as a result of a greater share of the VZW profits being taxed at the partnership level.

Earnings per shareBasic earnings per share was 0.87 pence, a reduction of 12.87 pence from the prior year. This was driven by higher impairment losses in the current year, whilst the prior year benefited from a gain on disposal of our 44% interest in SFR and 24.4% interest in Polkomtel.

Adjusted earnings per share, which is a non-GAAP measure used by management and which excludes the one-off items noted above together with items that we do not view as being reflective of our performance, was 15.65 pence, an increase of 5.0% compared to the prior year. The increase was primarily due to an increase in earnings on higher adjusted operating profit. Our calculation of the adjusted earnings on which we base our adjusted earnings per share calculation is set out below. Note 8 provides information on the number of shares.

2013 2012 m m

Profit attributable to equity shareholders 429 6,957

Pre-tax adjustments: Impairment loss 7,700 4,050Other income and expense1 (468) (3,705)Non-operating income and expense (10) 162Investment income and financing costs 51 (138) 7,273 369

Taxation2 (12) 242Non-controlling interests 6 (18)Adjusted profit attributable to equityshareholders 7,696 7,550

Notes:1 Other income and expense for the year ended 31 March 2013 included a 473 million gain on acquisition

of CWW. The year ended 31 March 2012 included a 3,419 million gain on disposal of the Groups 44% interest in SFR and a 296 million gain on disposal of the Groups 24.4% interest in Polkomtel.

2 Taxation for the year ended 31 March 2012 included a 206 million charge in respect of the disposal of the Groups 24.4% interest in Polkomtel. The gain arising on our acquisition of CWW in the year ended 31 March 2013 and the disposal of our 44% interest in SFR in the 2012 financial year did not give rise to a tax charge. The impairment charges of 7,700 million and 4,050 million in the years ended 31 March 2013 and 2012 respectively did not result in any tax consequences.

The consolidated statement of comprehensive income records all of the income and losses generated for the year. Total comprehensive income was over 0.7 billion, comprising a profit of 0.7 billion and other comprehensive income of 0.1 billion. Further details on the major movements in the year are set out below:

Foreign exchange differences, net of taxForeign exchange translation differences arise when we translate the results and net assets of our operating companies and associates, which transact their operations in foreign currencies including the euro, South African rand and Indian rupee, as well as US dollars for VZW, into our presentation currency of sterling. The net movement in foreign exchange rates resulted in a gain of 0.4 billion for the year. In the prior year there was a loss of 3.7 billion.

Net actuarial (losses)/gains on defined benefit schemesWe incurred a loss of 0.2 billion from the revaluation of the Groups defined benefit pension schemes after comparing the outcomes to those anticipated by the Groups actuary. In the prior year there was a loss of 0.3 billion.

Foreign exchange losses/(gains) transferred to the income statementThe prior year gains were a result of the recycling of foreign exchange losses on the disposal of our investments in SFR and Polkomtel.

Profit for the financial yearThe reasons underlying the 6.3 billion decrease in profit for the financial year are provided above.

The financial commentary on this page forms part of the business review and is unaudited.

91 Vodafone Group Plc Annual Report 2013Overview Business review Performance Governance Financials Additional information

Consolidated statement of financial positionat 31 March

2013 2012 Note m m

Non-current assets Goodwill 10 30,372 38,350Other intangible assets 10 22,025 21,164Property, plant and equipment 13 20,331 18,655Investments in associates 15 38,635 35,108Other investments 16 774 791Deferred tax assets 7 2,920 1,970Post employment benefits A5 52 31Trade and other receivables 17 4,302 3,482 119,411 119,551

Current assets Inventory A3 450 486Taxation recoverable 452 334Trade and other receivables 17 9,412 10,744Other investments 16 5,350 1,323Cash and cash equivalents 23 7,623 7,138 23,287 20,025Total assets 142,698 139,576

Equity Called up share capital 25 3,866 3,866Additional paid-in capital 154,279 154,123Treasury shares (9,029) (7,841)Retained losses (88,785) (84,184)Accumulated other comprehensive income 11,146 10,971Total equity shareholders funds 71,477 76,935

Non-controlling interests 1,890 2,090Put options over non-controlling interests (879) (823)Total non-controlling interests 1,011 1,267 Total equity 72,488 78,202

Non-current liabilities Long-term borrowings 24 29,108 28,362Taxation liabilities 150 250Deferred tax liabilities 7 6,698 6,597Post employment benefits A5 629 337Provisions 19 907 479Trade and other payables 18 1,494 1,324 38,986 37,349Current liabilities Short-term borrowings 24 12,289 6,258Taxation liabilities 1,919 1,898Provisions 19 818 633Trade and other payables 18 16,198 15,236 31,224 24,025Total equity and liabilities 142,698 139,