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Vodafone – Financials Notes to the Consolidated Financial Statements continued 6. Taxation continued At 31 March 2008, the gross amount and expiry dates of losses available for carry forward are as follows: Expiring Expiring within within 5 years 6-10 years Unlimited Total £m £m £m £m Losses for which a deferred tax asset is recognised 275 24 901 1,200 Losses for which no deferred tax is recognised 226 332 86,780 87,338 501 356 87,681 88,538 Included above are losses amounting to £1,969 million (2007: £1,938 million) in respect of UK subsidiaries which are only available for offset against future capital gains and since it is uncertain whether these losses will be utilised, no deferred tax asset has been recognised. The losses above also include £82,204 million (2007: £41,298 million) that have arisen in overseas holding companies as a result of revaluations of those companies’ investments for local GAAP purposes. Since it is uncertain whether these losses will be utilised, no deferred tax asset has been recognised. In addition to the losses described above, the Group has potential tax losses of £40,181 million (2007: £34,292 million) in respect of a write down in the value of investments in Germany. These losses have to date been denied by the German tax authorities. Vodafone is in continuing discussions with them regarding the availability of the losses. However, the outcome of these discussions and the timing of the resolution are not yet known. The Group has not recognised the availability of the losses, nor the income statement benefit arising from them, due to this uncertainty. If upon resolution a benefit is recognised, it may impact both the amount of current income taxes provided since the date of initial deduction and the amount of the benefit from tax losses the Group will recognise. The recognition of these benefits could affect the overall profitability of the Group in future periods. The £5,889 million increase compared to the position at 31 March 2007 is due to foreign exchange, as a result of sterling weakening against the euro. The Group holds provisions in respect of deferred taxation that would arise if temporary differences on investments in subsidiaries, associates and interests in joint ventures were to be realised after the balance sheet date. No deferred tax liability has been recognised in respect of a further £49,000 million (2007: £34,946 million) of unremitted earnings of subsidiaries, associates and joint ventures because the Group is in a position to control the timing of the reversal of the temporary difference and it is probable that such differences will not reverse in the foreseeable future. It is not practicable to estimate the amount of unrecognised deferred tax liabilities in respect of these unremitted earnings. 7. Equity dividends 2008 2007 2006 £m £m £m Declared during the financial year: Final dividend for the year ended 31 March 2007: 4.41 pence per share (2006: 3.87 pence per share, 2005: 2.16 pence per share) 2,331 2,328 1,386 Interim dividend for the year ended 31 March 2008: 2.49 pence per share (2007: 2.35 pence per share, 2006: 2.20 pence per share) 1,322 1,238 1,367 3,653 3,566 2,753 Proposed after the balance sheet date and not recognised as a liability: Final dividend for the year ended 31 March 2008: 5.02 pence per share (2007: 4.41 pence per share, 2006: 3.87 pence per share) 2,667 2,331 2,328 8. Earnings/(loss) per share 2008 2007 2006 Millions Millions Millions Weighted average number of shares for basic earnings/(loss) per share 53,019 55,144 62,607 Effect of dilutive potential shares: restricted shares and share options (1) 268 − − Weighted average number of shares for diluted earnings/(loss) per share 53,287 55,144 62,607 £m £m £m Earnings/(loss) for basic and diluted earnings per share: Continuing operations 6,660 (4,932) (17,318) Discontinued operations (2) − (494) (4,598) Total 6,660 (5,426) (21,916) Notes: (1) In the years ended 31 March 2007 and 2006, 215 million and 183 million shares, respectively, have been excluded from the calculation of diluted loss per share as they are not dilutive. (2) See note 29 for further information on discontinued operations, including the per share effect of discontinued operations. 102 Vodafone Group Plc Annual Report 2008
9. Intangible assets Licences and spectrum Computer Goodwill fees software Other Total £m £m £m £m £m Cost: 1 April 2006 76,130 16,991 3,572 755 97,448 Exchange movements (2,321) (431) (55) (99) (2,906) Arising on acquisition 1,746 707 18 257 2,728 Additions – 308 799 – 1,107 Transfer to other investments (487) (319) – (48) (854) Disposals – – (29) – (29) 31 March 2007 75,068 17,256 4,305 865 97,494 Exchange movements 12,406 1,707 573 59 14,745 Arising on acquisition 4,316 3,045 8 256 7,625 Additions – 33 993 8 1,034 Disposals – (1) (79) – (80) Other (1) (28) – – – (28) 31 March 2008 91,762 22,040 5,800 1,188 120,790 Accumulated impairment losses and amortisation: 1 April 2006 23,524 2,359 2,339 108 28,330 Exchange movements (623) (61) (45) (14) (743) Amortisation charge for the year – 1,088 719 293 2,100 Impairment losses 11,600 – – – 11,600 Transfer to other investments – (30) – (11) (41) Disposals – – (24) – (24) 31 March 2007 34,501 3,356 2,989 376 41,222 Exchange movements 5,925 433 436 28 6,822 Amortisation charge for the year – 1,343 802 337 2,482 Disposals – – (67) – (67) 31 March 2008 40,426 5,132 4,160 741 50,459 Net book value: 31 March 2007 40,567 13,900 1,316 489 56,272 31 March 2008 51,336 16,908 1,640 447 70,331 Note: (1) Represents a pre-tax charge against goodwill offsetting the tax benefit arising on recognition of a pre-acquisition deferred tax asset. For licences and spectrum fees and other intangible assets, amortisation is included within the cost of sales line within the Consolidated Income Statement. The net book value at 31 March 2008 and expiry dates of the most significant purchased licences are as follows: 2008 2007 Expiry date £m £m Germany December 2020 5,089 4,684 UK December 2021 4,579 4,912 Vodafone Group Plc Annual Report 2008 103
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Vodafone Group Plc Annual Report Fo
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Vodafone - Executive Summary Highli
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Total shareholder return April 2007
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Messaging revenue increased by 8.1%
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As well as driving growth in our ex
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Services Voice Messaging Data Fixed
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Strategy Vodafone’s five key stra
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EMAPA Deliver strong growth in emer
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Voice Voice services continue to ma
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• • Access & transmission netwo
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Research and development (“R&D”
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It also allows an open exchange of
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Sponsorships Vodafone’s global sp
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Voice services continue to make up
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The Group offers a number of produc
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Enables customers to utilise the se
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Strategic KPIs Year ended 31 March
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Adjusted operating profit increased
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Mobile telecommunications KPIs Germ
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Germany Adjusted operating profit f
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Mobile telecommunications KPIs 2008
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Associates 2008 2007 Verizon Wirele
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The Group’s share of results from
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Mobile telecommunications KPIs Germ
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As many of the cost reduction initi
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Mobile telecommunications KPIs 2007
Page 53 and 54: Outlook 2009 financial year Adjuste
Page 55 and 56: Expected benefits from investment i
Page 57 and 58: Equity dividends The table below se
Page 59 and 60: Funding The Group’s consolidated
Page 61 and 62: Corporate Responsibility The Board
Page 63 and 64: Vodafone requires manufacturers of
Page 65 and 66: 8 9 10 11 12 13 14 8. Nick Land §
Page 67 and 68: Corporate Governance The Board of t
Page 69 and 70: Re-election of directors Although n
Page 71 and 72: provisions of the Companies Act 198
Page 73 and 74: Directors’ Remuneration Dear Shar
Page 75 and 76: How the executive directors were pa
Page 77 and 78: Grants made and payouts received in
Page 79 and 80: Audited information Remuneration fo
Page 81 and 82: Long term incentives Performance sh
Page 83 and 84: Beneficial interests The directors
Page 85 and 86: Directors’ Statement of Responsib
Page 87 and 88: Critical Accounting Estimates The G
Page 89 and 90: Taxation The Group’s tax charge o
Page 91 and 92: Consolidated Balance Sheet at 31 Ma
Page 93 and 94: Notes to the Consolidated Financial
Page 95 and 96: determined had no impairment loss b
Page 97 and 98: Capital market and bank borrowings
Page 99 and 100: A reconciliation of adjusted operat
Page 101 and 102: 5. Investment income and financing
Page 103: Deferred tax Analysis of movements
Page 107 and 108: Key assumptions used in the value i
Page 109 and 110: 11. Property, plant and equipment L
Page 111 and 112: 13. Investments in joint ventures P
Page 113 and 114: 16. Inventory 2008 2007 £m £m Goo
Page 115 and 116: 20. Share-based payments The Compan
Page 117 and 118: 21. Transactions with equity shareh
Page 119 and 120: would reduce or increase profit bef
Page 121 and 122: Bank loans also include INR66 billi
Page 123 and 124: 25. Post employment benefits Backgr
Page 125 and 126: 26. Provisions Asset retirement Oth
Page 127 and 128: Pro forma full year information The
Page 129 and 130: 30. Reconciliation of net cash flow
Page 131 and 132: 33. Directors and key management co
Page 133 and 134: 37. New accounting standards The Gr
Page 135 and 136: Audit Report on the Company Financi
Page 137 and 138: Notes to the Company Financial Stat
Page 139 and 140: 5. Creditors 2008 2007 £m £m Amou
Page 141 and 142: 9. Equity dividends 2008 2007 £m
Page 143 and 144: Shareholders and other interested p
Page 145 and 146: any connected person) is a sharehol
Page 147 and 148: This section describes, primarily f
Page 149 and 150: Vodafone - Additional Information R
Page 151 and 152: EMAPA Eastern Europe Poland The NRA
Page 153 and 154: Impact Impact of of foreign acquisi
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Item Form 20-F caption Location in
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Definition of Terms 3G broadband 3G
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Contact Details Investor Relations
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