Vodafone 2016 Annual Report Download - page 132

Vodafone Group Plc
Annual Report 2016
130
Notes to the consolidated nancial statements (continued)
21. Borrowings (continued)
Borrowing facilities
Committed facilities expiry
2016 2015
Drawn Undrawn Drawn Undrawn
£m £m £m £m
Within one year 1,317 1,816 1,065 –
In one to two years 694 9 431 –
In two to three years 971 7 736 –
In three to four years 691 230 757 573
In four to ve years 662 5,855 317 2,790
In more than ve years 609 280 1,065 3,257
31 March 4,944 8,197 4,371 6,620
At 31 March 2016, the Group’s most signicant committed facilities comprised two revolving credit facilities which remained undrawn throughout
the year of US$4.1 billion (£2.8 billion) and €4.0 billion (£3.2 billion) maturing in ve years. Under the terms of these bank facilities, lenders have
the right, but not the obligation, to cancel their commitment 30 days from the date of notication of a change of control of the Company and have
outstanding advances repaid on the last day of the current interest period. The facility agreements provide for certain structural changes that do not
affect the obligations of the Company to be specically excluded from the denition of a change of control. This is in addition to the rights of lenders
to cancel their commitment if the Company has committed an event of default.
The terms and conditions of the Group’s drawn facilities obtained in relation to projects in its Italian, German, Turkish and Romanian operations
of €1.2 billion in aggregate (£0.9 billion) and the undrawn facilities in the Group’s UK and Irish operations totalling £0.5 billion and the undrawn facility
in the German operation of €0.4 billion (£0.3 billion) are similar to those of the US dollar and euro revolving credit facilities. Further information
on these facilities can be found in note 22 “Liquidity and capital resources”.
22. Liquidity and capital resources
This section includes an analysis of net debt, which we use to manage capital, and committed borrowing facilities.
Net debt
Net debt was £29.2 billion at 31 March 2016 and includes liabilities for amounts payable under the domination agreement in relation to Kabel
Deutschland AG (£1.4 billion) and deferred spectrum licence costs in India (£4.1 billion). This increased by £6.9 billion in the year as a result
of payments for spectrum licences and equity shareholder dividends which outweighed positive free cash ow.
Net debt represented 45.8% of our market capitalisation at 31 March 2016 compared to 35.1% at 31 March 2015. Average net debt at month end
accounting dates over the 12 month period ended 31 March 2016 was £25.9 billion and ranged between net debt of £22.3 billion and £30.8 billion.
Our consolidated net debt position at 31 March was as follows:
2016 2015
£m £m
Cash and cash equivalents 10,218 6,882
Short-term borrowings
Bonds (2,033) (1,786)
Commercial paper1(7,396) (5,077)
Put options over non-controlling interests2(1,430) (1,307)
Bank loans (2,254) (1,876)
Other short-term borrowings3(2,907) (2,577)
(16,020) (12,623)
Long-term borrowings
Put options over non-controlling interests (5) (7)
Bonds, loans and other long-term borrowings4 (29,322) (22,428)
(29,327) (22,435)
Other nancial instruments55,940 5,905
Net debt (29,189) (22,271)
Notes:
1 At 31 March 2016 US$471 million was drawn under the US commercial paper programme and €8,907 million and US$38 million were drawn under the euro commercial paper programme.
2 Includes a £1.4 billion (2015: £1.3 billion) liability for payments due to holders of the equity shares in Kabel Deutschland AG under the terms of a domination and prot and loss
transfer agreement.
3 At 31 March 2016 the amount includes £2,837 million (2015: £2,542 million) in relation to cash received under collateral support agreements. Amount also includes £50 million (2015: £nil)
in relation to the short-term debt component of the mandatory convertible bonds maturing on 25 August 2017 and 25 February 2019.
4 At 31 March 2016 the amount includes £69 million (2015: £nil) in relation to the long -term debt component of the mandatory convertible bonds maturing on 25 August 2017 and
25 February 2019.
5 Comprises mark-to-market adjustments on derivative nancial instruments which are included as a component of trade and other receivables £4,304 million (2015: £4,005 million) and trade
and other payables £1,564 million (2015: £984 million). Amount also includes short-term investments primarily in index linked government bonds and managed investment funds included
as a component of other investments and cash paid as collateral £3,200 million (2015: £2,884 million).