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Notes 11-15

13. Investments in joint ventures

Principal joint ventures

At 31 March 2009, the Company had the following joint venture undertakings carrying on businesses which affect the profits and assets of the Group. 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
shareholdings		 (1)
Indus Towers Limited Network infrastructure India 21.7 (2)
Polkomtel S.A. Network operator Poland 24.4
Vodacom Group (Pty) Limited Holding company South Africa 50.0
Vodafone Fiji Limited Network operator Fiji 49.0 (3)
Vodafone Omnitel N.V.(4) Network operator Netherlands 76.9 (5)

Notes:

(1)
Rounded to nearest tenth of one percent.
(2)
Vodafone Essar, in which the Group has a 51.6% equity interest, owns 42.0% of Indus Towers Limited.
(3)
The Group holds substantive participating rights which provide it with a veto over the significant financial and operating policies of Vodafone Fiji Limited and which ensure it is able to exercise joint control over Vodafone Fiji Limited with the majority shareholder.
(4)
The principal place of operation of Vodafone Omnitel N.V. is Italy.
(5)
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 table presents, on a condensed basis, the effect on the consolidated financial statements of including joint ventures using proportionate consolidation. The results of Safaricom Limited (‘Safaricom’) are included until 28 May 2008, at which time its consolidation status changed from joint venture to associated undertaking following completion of the share allocation for the public offering of 25% of Safaricom’s shares previously held by the Government of Kenya and termination of the shareholding agreement with the Government of Kenya. The results related to the additional 4.8% stake in Polkomtel acquired in the year are included from 18 December 2008.


2009
£m		 2008
£m		 2007
£m
Revenue 7,737 6,448 6,232
Cost of sales (4,076) (3,225) (3,077)
Gross profit 3,661 3,223 3,155
Selling, distribution and administrative expenses (1,447) (1,155) (1,121)
Impairment losses – – (4,900)
Operating profit/(loss) 2,214 2,068 (2,866)
Net financing costs (170) (119) 46
Profit/(loss) before tax 2,044 1,949 (2,820)
Income tax expense (564) (829) (614)
Profit/(loss) for the financial year 1,480 1,120 (3,434)
       

2009
£m		 2008
£m
Non-current assets   22,688 19,102
Current assets   1,148 235
Total assets   23,836 19,337
       
Total shareholders’ funds   20,079 16,036
Minority interests   20 13
Total equity   20,099 16,049
       
Non-current liabilities   865 352
Current liabilities   2,872 2,936
Total liabilities   3,737 3,288
Total equity and liabilities   23,836 19,337
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