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9. Equity dividends<br />
2008 2007<br />
£m £m<br />
Declared during <strong>the</strong> financial year:<br />
Final dividend for <strong>the</strong> year ended 31 March 2007: 4.41 pence per share (2006: 3.87 pence per share) 2,331 2,328<br />
Interim dividend for <strong>the</strong> year ended 31 March 2008: 2.49 pence per share (2007: 2.35 pence per share) 1,322 1,238<br />
Proposed after <strong>the</strong> balance sheet date and not recognised as a liability:<br />
Final dividend for <strong>the</strong> year ended 31 March 2008: 5.02 pence per share<br />
3,653 3,566<br />
(2007: 4.41 pence per share) 2,667 2,331<br />
10. Contingent liabilities<br />
2008 2007<br />
£m £m<br />
Performance bonds 30 87<br />
Credit guarantees – third party indebtedness 4,208 1,278<br />
O<strong>the</strong>r guarantees and contingent liabilities 255 10<br />
Performance bonds<br />
Performance bonds require <strong>the</strong> Company to make payments to third parties in <strong>the</strong> event that <strong>the</strong> Company or its subsidiary undertakings do not perform what is<br />
expected of <strong>the</strong>m under <strong>the</strong> terms of any related contracts.<br />
Company performance bonds include £26 million (2007: £57 million) in respect of undertakings to roll out third generation networks in Spain.<br />
Credit guarantees – third party indebtedness<br />
Credit guarantees comprise guarantees and indemnities of bank or o<strong>the</strong>r facilities.<br />
During <strong>the</strong> year ended 31 March 2008, a subsidiary of <strong>the</strong> Company granted put options exercisable between 8 May 2010 and 8 May 2011 to members of <strong>the</strong> Essar<br />
group of companies that, if exercised, would allow <strong>the</strong> Essar group to sell its 33% shareholding in <strong>Vodafone</strong> Essar to <strong>the</strong> Group for US$5 billion or to sell between<br />
US$1 billion and US$5 billion worth of <strong>Vodafone</strong> Essar shares to <strong>the</strong> Group at an independently appraised fair market value. The Company has guaranteed payment<br />
of up to US$5 billion related to <strong>the</strong>se options.<br />
At 31 March 2008, <strong>the</strong> Company had also guaranteed debt of <strong>Vodafone</strong> Finance K.K. amounting to £1,303 million (2007: £1,117 million) and issued guarantees in<br />
respect of notes issued by <strong>Vodafone</strong> Americas, Inc. amounting to £163 million (2007: £161 million). The Japanese facility expires by March 2011 and <strong>the</strong> majority<br />
of <strong>Vodafone</strong> Americas, Inc. bond guarantees expire by July 2008.<br />
O<strong>the</strong>r guarantees and contingent liabilities<br />
O<strong>the</strong>r guarantees principally comprise of a guarantee relating to a bid for a second licence in Qatar of £57 million (2007: nil) and a commitment to <strong>the</strong> Spanish tax<br />
authorities of £197 million (2007: nil).<br />
Legal proceedings<br />
Details regarding certain legal actions which involve <strong>the</strong> Company are set out in note 32 to <strong>the</strong> Consolidated Financial Statements.<br />
<strong>Vodafone</strong> Group Plc Annual Report 2008 139
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