Vodafone 2002 Annual Report Download - page 89

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Notes to the Consolidated Financial Statements Vodafone Group Plc 87Annual Report & Accounts and Form 20-F
Joint ventures and associated undertakings
Group turnover includes sales to joint ventures and associated undertakings of £27m (2001: £211m, 2000: £303m), primarily comprising network airtime
and access charges. Total operating costs include charges from joint ventures and associated undertakings of £42m (2001: £84m, 2000: £82m), primarily
comprising roaming charges.
The Group’s share of the turnover and operating loss of joint ventures and associated undertakings is further analysed as follows:
Continuing
operations Acquisitions 2002 2001 2000
£m £m £m £m £m
Share of turnover:
Joint ventures 3 – 3 98 362
Associated undertakings 10,542 151 10,693 8,891 3,286
10,545 151 10,696 8,989 3,648
Continuing 2001 2000
operations Acquisitions 2002 as restated as restated
£m £m £m £m £m
Share of operating loss:
Joint ventures (231) –(231) (42) (40)
Associated undertakings (658) (568) (1,226) (508) (145)
(889) (568) (1,457) (550) (185)
6. Exceptional non-operating items
2002 2001 2000
£m £m £m
Amounts written off fixed asset investments (920) (193) –
Profit on disposal of fixed asset investments 96 954
Profit on disposal of fixed assets 10 6 –
Profit on disposal of businesses 41 ––
Profit on termination of hedging instrument –261 –
(860) 80 954
Amounts written off fixed asset investments primarily relate to the Group’s interest in China Mobile. The profit on disposal of fixed asset investments relates
to a profit on disposal of the Group’s 11.7% interest in the Korean mobile operator, Shinsegi Telecom, Inc. The profit on disposal of businesses principally
relates to a gain arising on the reduction in the Group’s interest in Vodafone-Panafon Hellenic Telecommunications Company S.A., from 55% to 51.9%.
The profit on termination of the hedging instrument arose in March 2001 upon the settlement of a hedging transaction entered into by the Group in order
to obtain protection against an adverse market-related price adjustment included in the original terms of the agreement for the sale of Infostrada S.p.A.
This hedging transaction was terminated with cash proceeds to the Group of approximately 1410 million. The amounts written off of fixed asset investments
in the year ended 31 March 2001 are in relation to the Group’s interest in Globalstar and its previous interest in Shinsegi Telecom, Inc.
The profit on disposal of fixed asset investments in the year ended 31 March 2000 arose primarily from the disposal of the Group’s 17.24% shareholding in
E-Plus Mobilfunk GmbH, the disposal of the Group’s 20% shareholding in a UK service provider, Martin Dawes Telecommunications Limited, and the disposal
of the Group’s 50% shareholding in Comfone AG in Switzerland.
Under US GAAP, the above exceptional non-operating items would be reclassified as “Operating items”and would reduce or increase operating
profit accordingly.