Vodafone 2006 Annual Report Download - page 97

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Vodafone Group Plc Annual Report 2006 95
13. Investments in joint ventures
Principal joint ventures
Unless otherwise stated, the Company’s principal joint ventures all have share capital consisting solely of ordinary shares, which are indirectly held, and the country of incorporation
or registration is also their principal place of operation. The accounts of the joint ventures are drawn up to 31 March 2006 for inclusion in the Consolidated Financial Statements.
Summarised financial information of joint ventures is disclosed in note 37.
Country of
incorporation Percentage(1)
Name Principal activity or registration shareholdings
Bharti Airtel Limited(2) Mobile network and fixed line operator India 10.0(3)
Polkomtel S.A.(4) Mobile network operator Poland 19.6
Safaricom Limited(5) Mobile network operator Kenya 35.0(3)
Vodacom Group (Pty) Limited Holding company South Africa 50.0
Vodafone Fiji Limited Mobile network operator Fiji 49.0(3)
Vodafone Omnitel N.V.(6) Mobile network operator Netherlands 76.9(7)
Notes:
(1) Rounded to nearest tenth of one percent.
(2) On 28 April 2006, Bharti Tele-Ventures Limited changed its name to Bharti Airtel Limited.
(3) The Group holds substantive participating rights which provide it with a veto over the significant financial and operating policies of these entities and which ensure it is able to exercise joint control over these entities with the respective majority
shareholder.
(4) Latest statutory financial statements were drawn up to 31 December 2005.
(5) The Group also holds two non-voting shares.
(6) The principal place of operation of Vodafone Omnitel N.V. is Italy.
(7) The Group considered the existence of substantive participating rights held by the minority shareholder which provide that shareholder with a veto right over the significant financial and operating policies of Vodafone Omnitel N.V. and determined that,
as a result of these rights, the Group does not have control over the financial and operating policies of Vodafone Omnitel N.V., despite the Group’s 76.9% ownership interest.
Effect of proportionate consolidation of joint ventures
The following presents, on a condensed basis, the effect of including joint ventures in the Consolidated Financial Statements using proportionate consolidation:
2006 2005
£m £m
Revenue 5,756 5,423
Cost of sales (2,832) (2,805)
Gross profit 2,924 2,618
Selling and distribution expenses (251) (230)
Administrative expenses (634) (389)
Impairment losses (3,600) –
Operating (loss)/profit (1,561) 1,999
Net financing costs 27 64
(Loss)/profit before tax (1,534) 2,063
Tax on (loss)/profit (711) (782)
(Loss)/profit for the financial year (2,245) 1,281
Intangible assets 20,985 21,925
Property, plant and equipment 2,506 1,951
Other non-current assets 27 470
Non-current assets 23,518 24,346
Cash and cash equivalents 1,345 3,931
Other current assets 1,148 1,013
Current assets 2,493 4,944
Total assets 26,011 29,290
Current liabilities 2,059 1,583
Other non-current liabilities 535 363
2,594 1,946
Total equity shareholders’ funds 23,402 27,340
Minority interests 15 4
Total equity and liabilities 26,011 29,290
Financials