Vodafone 2007 Annual Report Download - page 133

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Vodafone Group Plc Annual Report 2007 131
Financials
29. Discontinued operations and disposals
Japan – Vodafone K.K.
On 17 March 2006, the Group announced an agreement to sell its 97.7% holding in Vodafone K.K. to SoftBank. The transaction completed on 27 April 2006,
with the Group receiving cash of approximately ¥1.42 trillion (£6.9 billion) including the repayment of intercompany debt of ¥0.16 trillion (£0.8 billion). In
addition, the Group received non-cash consideration with a fair value of approximately ¥0.23 trillion (£1.1 billion), comprised of preferred equity and a
subordinated loan. SoftBank also assumed debt of approximately ¥0.13 trillion (£0.6 billion). Vodafone K.K. represented a separate geographical area of
operation and, on this basis, Vodafone K.K. was treated as a discontinued operation in Vodafone Group Plc’s annual report for the year ended 31 March 2006.
Income statement and segment analysis of discontinued operations
2007 2006 2005
£m £m £m
Service revenue 376 5,264 5,610
Equipment and other revenue 144 2,004 1,786
Segment revenue 520 7,268 7,396
Inter-segment revenue –(2) (1)
Net revenue 520 7,266 7,395
Operating expenses (402) (5,667) (5,417)
Depreciation and amortisation(1) –(1,144) (1,314)
Impairment loss –(4,900) –
Operating profit/(loss) 118 (4,445) 664
Non operating income and expense ––13
Net financing costs 8(3) (11)
Profit/(loss) before taxation 126 (4,448) 666
Taxation relating to performance of discontinued operations (15) 7 436
Loss on disposal(2) (747) ––
Taxation relating to the classification of the discontinued operations 145 (147) –
(Loss)/profit for the financial year from discontinued operations(3) (491) (4,588) 1,102
Notes:
(1) Including gains and losses on disposal of fixed assets.
(2) Includes £794 million of foreign exchange differences transferred to the income statement on disposal.
(3) Amount attributable to equity shareholders for the year to 31 March 2007 was £(494) million (2006: £(4,598) million; 2005: £1,035 million).
(Loss)/earnings per share from discontinued operations
2007 2006 2005
Pence per share Pence per share Pence per share
Basic (loss)/earnings per share (0.90) (7.35) 1.56
Diluted (loss)/earnings per share (0.90) (7.35) 1.56
Cash flows from discontinued operations
2007 2006 2005
£m £m £m
Net cash flows from operating activities 135 1,651 1,739
Net cash flows from investing activities (266) (939) (448)
Net cash flows from financing activities (29) (536) (1,289)
Net increase in cash and cash equivalents (160) 176 2
Cash and cash equivalents at the beginning of the financial year 161 43
Exchange loss on cash and cash equivalents (1) (19) (1)
Cash and cash equivalents at the end of the financial year – 161 4