Vodafone 2014 Annual Report Download - page 163

Pro-forma full year information
The following unaudited pro-forma summary presents the Group as if the acquisitions of KDG and the remaining interests in Vodafone Italy had
been completed on 1 April 2013. The pro-forma amounts include the results of these acquisitions, amortisation of the acquired intangible assets
recognised on acquisition and interest expense on the increase in net debt as a result of the acquisitions. The pro-forma information is provided for
comparative purposes only and does not necessarily reect the actual results that would have occurred, nor is it necessarily indicative of future
results of operations of the combined companies.
2014
£m
Revenue 44,127
Prot for the nancial year 59,024
Prot attributable to equity shareholders 58,959
Pence
Basic earnings per share 222.72
Diluted earnings per share 220.97
Other acquisitions
During the 2014 nancial year the Group completed a number of other acquisitions for an aggregate net cash consideration of £6 million,
all of which was paid during the year. The aggregate fair values of goodwill, identiable assets, and liabilities of the acquired operations were
£4 million, £3 million and £1 million, respectively. In addition, the Group completed the acquisition of certain non-controlling interests for a net cash
consideration of £111 million.
Cable & Wireless Worldwide plc (‘CWW’)
On 27 July 2012 the Group acquired the entire share capital of CWW for cash consideration of approximately £1,050 million before tax and
transaction costs. CWW de-listed from the London Stock Exchange on 30 July 2012. CWW provides a wide range of managed voice, data, hosting
and IP-based services and applications. The primary reasons for acquiring the business were to strengthen the enterprise business of Vodafone
Group in the UK and internationally, and the attractive network and other cost saving opportunities for the Vodafone Group.
The results of the acquired entity have been consolidated in the Group’s income statement from 27 July 2012 and contributed £1,234 million
of revenue and a loss of £151 million to the prot attributable to equity shareholders of the Group during the year ended 31 March 2013.
The purchase price allocation is set out in the table below:
Fair value
£m
Net assets acquired:
Identiable intangible assets1325
Property, plant and equipment 1,207
Inventory 34
Trade and other receivables 452
Cash and cash equivalents 78
Current and deferred taxation 788
Short and long-term borrowings (306)
Trade and other payables (754)
Provisions (249)
Post employment benets (47)
Net identiable assets acquired 1,528
Non-controlling interests (5)
Negative goodwill2(473)
Total consideration 1,050
Notes:
1 Identiable intangible assets of £325 million consisted of customer relationships of £225 million, CWW brand of £54 million and software of £46 million and are amortised in line with Group accounting policies.
2 Transaction costs of £11 million were charged in the Group’s consolidated income statement in the year ended 31 March 2013.
The negative goodwill primarily arose from an upward fair value adjustment in relation to acquired property, plant and equipment, the recognition
of acquired identiable intangible assets not previously recognised by CWW together with the recognition of a deferred tax asset resulting from
previously unclaimed UK capital allowances. The change in the purchase price allocation from that previously disclosed relates to further deferred
tax asset recognition following the completion of new long-term business plans. No deferred tax assets have been recognised in respect of the
losses of CWW (see “Factors affecting the tax charge in future years” on page 122). The income statement credit in respect of the negative goodwill
is reported within “Other income and expense” on the face of the consolidated income statement in the year ended 31 March 2013.
On 27 July 2012 the Group acquired convertible bonds issued by CWW amounting to £245 million which resulted in £6 million of interest being
charged to the Group’s consolidated income statement in the year ended 31 March 2013.
Annual Report 2014 161Overview Strategy review Performance Governance Financials Additional information