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64
Vodafone Group Plc
Annual Report & Accounts
for the year ended
31 March 2001
UNAUDITED PRO FORMA PROPORTIONATE FINANCIAL INFORMATION
Pro forma p roportion ate fin an cial in formation
The following tables of unaudited pro forma financial information are presented on a proportionate basis. The basis of preparation of pro forma
information is given below. Proportionate presentation is not required by UK GAAP and is not intended to replace the consolidated financial
statements prepared in accordance with UK GAAP. However, since significant entities in which the Group has an interest are not consolidated,
proportionate information is provided as supplemental data to facilitate a more detailed understanding and assessment of the consolidated
financial statements prepared in accordance with UK GAAP.
UK GAAP requires consolidation of entities controlled by the Group and the equity method of accounting for entities in which the Group has
significant influence but not a controlling interest. Proportionate presentation is a pro rata consolidation, which reflects the Group’s share of
turnover and expenses in both its consolidated and unconsolidated entities. Proportionate results are calculated by multiplying the Group’s
ownership interest in each entity by each entity’s results.
Proportionate information includes results from the Group’s equity accounted investments and investments held at cost. The Group does not have
control over the turnover, expenses or cash flow of these investments and is only entitled to cash from dividends received from these entities.
The Group does not own the underlying assets of these investments.
Basis of preparation of un audited pro form a in form ation
Pro forma financial information for the year ended 31 March 2000 has been derived from the audited consolidated financial statements of the
Group for the relevant period, the unaudited financial results of AirTouch Communications, Inc. for the three month period ended 30 June 1999
and the unaudited financial results of Mannesmann AG for the year ended 31 March 2000. The financial results of Mannesmann AG for the
relevant periods have been adjusted to exclude the results of businesses held for resale on acquisition. The financial statements of AirTouch
Communications, Inc. and Mannesmann AG, previously prepared under US GAAP and German GAAP, respectively, have been adjusted to conform
materially with Vodafone Group’s accounting policies under UK GAAP.
The pro forma adjustments for the year ended 31 March 2000 have been determined as if the merger with AirTouch Communications, Inc. and
the acquisition of Mannesmann AG took place on 1 April 1999.
Pro forma financial information for the year ended 31 March 2001 has been derived from the Group’s consolidated financial results for the year
then ended and the unaudited financial results of Mannesmann AG, excluding the results of businesses held for resale on acquisition, for the
period from 1 April 2000 to 12 April 2000.
Pro forma adjustments include assumptions made by Vodafone Group’s management that it believes to be reasonable. The unaudited pro forma
financial information does not take into account any synergies, including cost savings, or any severance and restructuring cost, which may or are
expected to occur as a result of the merger with AirTouch Communications, Inc. or the acquisition of Mannesmann AG, except insofar as such
costs and savings have been included in the financial statements of the Vodafone Group for each of the periods presented.
2001 2000
Pro forma p roportion ate tu rn over £m £m
Mobile telecommunications:
Continental Europe 9,743 8,063
United Kingdom 3,458 2,945
United States 5,008 3,650
Asia Pacific 2,771 1,537
Middle East and Africa 448 395
–––––––– ––––––––
21,428 16,590
Other operations 802 825
–––––––– ––––––––
22,230 17,415
–––––––– ––––––––
Pro forma p roportion ate EBITDA*
Mobile telecommunications:
Continental Europe 3,534 2,906
United Kingdom 1,068 934
United States 1,627 1,145
Asia Pacific 587 377
Middle East and Africa 227 142
–––––––– ––––––––
7,043 5,504
Other operations (27) 17
–––––––– ––––––––
Pro forma proportionate EBITDA* 7,016 5,521
Less: Depreciation and amortisation, excluding goodwill (2,234) (1,715)
Mobile telecommunications 5,019 3,977
Other operations (237) (171)
–––––––– ––––––––
Pro forma proportionate total Group operating profit before
goodwill and exceptional items 4,782 3,806
–––––––– ––––––––
* Proportionate EBITDA (earnings before interest, tax, depreciation and amortisation) is defined as operating profit before exceptional reorganisation costs plus depreciation and
amortisation of subsidiary undertakings, joint ventures, associated undertakings and investments, proportionate to equity stakes. Proportionate EBITDA represents the Group’s
ownership interests in the respective entities’ EBITDA. As such, proportionate EBITDA does not represent EBITDA available to the Group.