VODAFONE GROUP SERVICES LIMITED

The percentages provided in the payment statistics above include payments made to Vodafone Group entities providing goods or services to Vodafone Group Services Limited. Vodafone intercompany payment terms include many transactions with payment terms up to 120 days. These payments are included in our reported statistics as required and this therefore impacts the payment statistics. If intercompany payments are excluded from the statistics, they are as follows:
Average time to pay in days – 39 days
Split of payments made under qualifying contracts in the reporting period
Percentage of invoices paid between day 1 and day 30 (inclusive) – 54%
Percentage of invoices paid between day 31 and day 60 (inclusive) – 33%
Percentage of invoices paid on or after day 61 – 13%
The total value of these is:
Within 30 days: £ 327,398,061 (83%)
in 31 to 60 days: £ 47,752,312 (12%)
in 61 days or more: £ 20,042,192 (5%)

Payments due in the reporting period which have not been paid within the agreed period – 9%
Total value of payments due in the reporting period which have not been paid within the agreed period = £ 9,429,818
Our standard payment terms are as follows
General procurement agreements:
For external suppliers Vodafone Group Services Limited’s standard payment terms are 60 days from the date of receipt of invoice, or where a supplier is classed as a small supplier, in accordance with the UK Companies Act, 30 days from the date of receipt of invoice. Where the relevant agreement relates to the provisions of goods or services for supply to public sector customers, Vodafone Group Services Limited’s standard payment terms are 30 days from date of receipt of invoice. For procurement from other Vodafone Group companies, Vodafone Group Services Limited’s payment terms are up to 120 days.
Longer or shorter payment terms may be agreed as part of a wider commercial negotiation of the relevant agreement. Any deviation from standard terms will take into account, amongst other things, (i)the type of goods or services provided and undertaken, (ii) the size of the supplier and its wider corporate group, (iii)the supplier’s relationship with the wider Vodafone Group and (iv) any other relevant commercial factors. Additionally, Vodafone Group Services Limited has a number of legacy framework agreements which may be on longer or shorter terms which will be reviewed at renewal with the objective of reducing the payment terms for small suppliers to 30 days.

Any disputes on individual invoices should be raised to the Vodafone Accounts Payable team via our Supplier Digital Portal (http://supplier.ariba.com/) who will work with the supplier to resolve the issue. The supplier will generally receive a response the next day but we aim to respond to all queries within 5 working days.

Vodafone Group services Ltd does not currently have a process which records the percentage of payments not made within the payment period as a result of a dispute. As we are unable to accurately report our position, we have entered 0% whilst we work towards correcting this for future submissions.