Vodafone 1999 Annual Report Download - page 18

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Financial Review
Average exchange rates
Year to
31 March
Year to
31 March
Percentage
change
Currency 1999 1998 %
Australian Dollar 2.68 2.30 16.5
Dutch Guilder 3.26 3.28 (0.6)
French Franc 9.68 9.80 (1.2)
German Mark 2.89 2.92 (1.0)
Greek Drachma 488.69 462.40 5.7
South African Rand 9.61 7.75 24.0
Swedish Krona 13.18 12.85 2.6
The
adverse
impact of
exchange
rates on
total
Group
operating
profit
was
£22.7m,
due
primarily
to the
strength
of
sterling
against
the
South
African
Rand
and
Greek
Drachma.
Proportionate EBITDA, which reflects the cash flow of all the Group’s activities, increased
by 33% to £1,218.0m from £919.0m. Proportionate EBITDA is defined as operating profit
before exceptional reorganisation costs plus depreciation and amortisation of
subsidiaries, associated undertakings and investments, proportionate to equity stakes.
Profit on disposal of fixed asset investments and businesses
The profit on disposal of fixed asset investments of £66.7m arose principally from the
part-disposal of the Group’s interest in Globalstar, reducing its interest from 5.2% to
3.0%. The Group also disposed of the business and net assets of its French service
provider business, which was operated by Vodafone SA, in November 1998.
Interest
The Group’s net interest cost increased by £33.0m as net borrowings increased by £391.0m to finance international
acquisitions.
Taxation
The effective tax rate decreased by 4.3% to 27.0% primarily as a result of the utilisation of brought forward losses in
overseas operations. Excluding the effect of disposals, the effective rate decreased from 32.5% to 28.7%.
Minority interests
http://www.vodafone.com/download/investor/reports/annual99/financial_review.htm (3 of 10)30/03/2007 00:08:22