Download the report - Vodafone

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.
Country of
incorporation Percentage (1)
Name Principal activity or registration shareholdings
Indus Towers Limited Tower company India 21.7 (2)
Polkomtel S.A. Mobile network operator Poland 19.6
Safaricom Limited (3)(4) Mobile network operator Kenya 35.0 (5)
Vodacom Group (Pty) Limited Holding company South Africa 50.0
Vodafone Fiji Limited Mobile network operator Fiji 49.0 (5)
Vodafone Omnitel N.V. (6) Mobile network operator Netherlands 76.9 (7)
Notes:
(1) Rounded to nearest tenth of one percent.
(2) Vodafone Essar, in which the Group has a 51.58% equity interest, owns 42.0% of Indus Towers Limited.
(3) The Group also holds two non-voting shares.
(4) An initial public offering of 25% of Safaricom shares held by the Government of Kenya closed to applicants on 23 April 2008. Share allocations are expected to be announced on, or around,
30 May 2008, following which Safaricom will be accounted for as an associate, rather than as a joint venture. The Group’s effective equity interest will remain unchanged.
(5) 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.
(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 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:
2008 2007 2006
£m £m £m
Revenue 6,448 6,232 5,756
Cost of sales (3,225) (3,077) (2,832)
Gross profit 3,223 3,155 2,924
Selling, distribution and administrative expenses (1,155) (1,121) (885)
Impairment losses – (4,900) (3,600)
Operating profit/(loss) 2,068 (2,866) (1,561)
Net financing costs (119) 46 27
Profit/(loss) before tax 1,949 (2,820) (1,534)
Income tax expense (829) (614) (711)
Profit/(loss) for the financial year 1,120 (3,434) (2,245)
2008 2007
£m £m
Non-current assets 19,102 16,594
Current assets 235 1,062
Total assets 19,337 17,656
Total shareholders’ funds 16,036 17,754
Minority interests 13 8
Total equity 16,049 17,762
Non-current liabilities 352 333
Current liabilities 2,936 (439)
Total liabilities 3,288 (106)
Total equity and liabilities 19,337 17,656
Vodafone Group Plc Annual Report 2008 109