13. Investments in joint ventures

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Financials

Notes to the Consolidated Financial Statements

Notes 11-15

11. Property, plant and equipment
12. Principal subsidiary undertakings
13. Investments in joint ventures
14. Investments in associated undertakings
15. Other investments

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.

Name	Principal activity	Country of incorporation or registration	Percentage⁽¹⁾ 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 £m	2007 £m	2006 £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 £m	2007 £m
Non-current assets	19,102	16,594
Current assets	235	1,062
Total assets	19,337	17,656

Total shareholder’ 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