Vodafone 2002 Annual Report Download - page 143

Unaudited Proportionate Financial Information
Unaudited Proportionate Financial Information Vodafone Group Plc 141Annual Report & Accounts and Form 20-F
The following tables of unaudited financial information are presented on a proportionate basis. The basis of preparation of information is given below. Proportionate
presentation is not required by UK GAAP and is not intended to replace the consolidated financial statements prepared in accordance with UK GAAP. However, since
significant entities in which the Group has an interest are not consolidated, proportionate information is provided as supplemental data to facilitate a more detailed
understanding and assessment of the consolidated financial statements prepared in accordance with UK GAAP.
UK GAAP requires consolidation of entities controlled by the Group and the equity method of accounting for entities in which the Group has significant influence but not
a controlling interest. Proportionate presentation is a pro rata consolidation, which reflects the Group’s share of turnover and expenses in both its consolidated and
unconsolidated entities. Proportionate results are calculated by multiplying the Group’s ownership interest in each entity by each entity’s results.
Proportionate information includes results from the Group’s equity accounted investments and investments held at cost. The Group does not have control over the
turnover, expenses or cash flow of these investments and is only entitled to cash from dividends received from these entities. The Group does not own the underlying
assets of these investments.
Basis of preparation of unaudited information
Financial information for the year ended 31 March 2002 has been derived from the Group’s consolidated financial results for the year.
Pro forma financial information for the year ended 31 March 2001 has been derived from the Group’s consolidated financial results for the year and the unaudited financial
results of Mannesmann, excluding the results of businesses held for resale on acquisition, for the period from 1 April 2000 to 12 April 2000.
The pro forma comparatives include assumptions made by the Group’s management that it believes to be reasonable. The unaudited pro forma financial information does
not take into account any synergies, including cost savings, or any severance and restructuring cost, which may or are expected to occur as a result of the acquisition of
Mannesmann, except insofar as such costs and savings have been included in the financial statements of the Group for each of the periods presented.
Proportionate turnover 2002 2001
£m £m
Mobile telecommunications:
Northern Europe 6,516 5,357
Central Europe 4,694 4,323
Southern Europe 5,109 3,521
Europe 16,319 13,201
Americas 5,638 5,008
Asia Pacific 5,373 2,771
Middle East and Africa 488 448
27,818 21,428
Other operations:
Europe 821 767
Asia Pacific 1,160 35
29,799 22,230
Proportionate EBITDA* 2002 2001
£m £m
Mobile telecommunications:
Northern Europe 2,264 1,674
Central Europe 2,068 1,478
Southern Europe 2,131 1,450
Europe 6,463 4,602
Americas 1,907 1,627
Asia Pacific 1,321 587
Middle East and Africa 211 227
9,902 7,043
Other operations:
Europe (8) (32)
Asia Pacific 199 5
10,093 7,016
Less: depreciation and amortisation, excluding goodwill (3,693) (2,234)
Mobile telecommunications 6,688 5,019
Other operations (288) (237)
Proportionate total Group operating profit before goodwill and exceptional items 6,400 4,782
* Proportionate EBITDA is defined as operating profit before exceptional reorganisation costs plus depreciation and amortisation of subsidiary undertakings, joint ventures,
associated undertakings and investments, proportionate to equity stakes. Proportionate EBITDA represents the Group’s ownership interests in the respective entities’
EBITDA. As such, proportionate EBITDA does not represent EBITDA available to the Group.