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98 Vodafone Group Plc Annual Report 2010
Notes to the consolidated nancial statements continued
14. Investments in associates
At 31 March 2010 the Company had the following principal associates carrying on businesses which affect the profits and assets of the Group. The Company’s principal
associates all have share capital consisting solely of ordinary shares, unless otherwise stated, and are all indirectly held. The country of incorporation or registration of all
associates is also their principal place of operation.
Country of
incorporation Percentage(1)
Name Principal activity or registration shareholdings
Cellco Partnership(2) Network operator USA 45.0
Société Française du Radiotéléphone S.A. Network operator France 44.0
Safaricom Limited(3)(4) Network operator Kenya 40.0
Notes:
(1) Rounded to nearest tenth of one percent.
(2) Cellco Partnership trades under the name Verizon Wireless.
(3) The Group also holds two non-voting shares.
(4) At 31 March 2010 the fair value of Safaricom Limited was KES89 billion (£756 million) based on the closing quoted share price on the Nairobi Stock Exchange.
The Group’s share of the aggregated financial information of equity accounted associates is set out below. The amounts for the year ended 31 March 2009 include the share
of results in Safaricom from 28 May 2008, at which time its consolidation status changed from being a joint venture to an associate.
2010 2009 2008
£m £m £m
Revenue 23,288 19,307 13,630
Share of result in associates 4 ,74 2 4,091 2,876
Share of discontinued operations in associates 93 57 –
2010 2009
£m £m
Non-current assets 47,048 50,732
Current assets 4,901 4,641
Share of total assets 51,949 55,373
Non-current liabilities 8,295 8,668
Current liabilities 6,685 11,394
Non-controlling interests 592 596
Share of total liabilities and non-controlling interests 15,572 20,658
Share of equity shareholders’ funds in associates 36,377 34,715
15. Other investments
Non-current other investments comprise the following, all of which are classified as available-for-sale, with the exception of other debt and bonds, which are classified as
loans and receivables, and cash held in restricted deposits:
2010 2009
£m £m
Included within non-current assets:
Listed securities:
Equity securities 4,072 3,931
Unlisted securities:
Equity securities 879 833
Public debt and bonds 11 20
Other debt and bonds 2,355 2,094
Cash held in restricted deposits 274 182
7, 591 7, 060
Included within current assets:
Government bonds 388 –
The fair values of listed securities are based on quoted market prices and include the Group’s 3.2% investment in China Mobile Limited, which is listed on the Hong Kong and
New York stock exchanges and incorporated under the laws of Hong Kong. China Mobile Limited is a mobile network operator and its principal place of operation is China.
Unlisted equity securities include a 26% interest in Bharti Infotel Private Limited, through which the Group has a 4.36% economic interest in Bharti Airtel Limited. Unlisted
equity investments are recorded at fair value where appropriate, or at cost if their fair value cannot be reliably measured as there is no active market from which their fair
values can be derived.
For public debt and bonds and cash held in restricted deposits, the carrying amount approximates fair value.
Other debt and bonds include preferred equity and a subordinated loan received as part of the disposal of Vodafone Japan to SoftBank. The fair value of these instruments
cannot be reliably measured as there is no active market in which these are traded. As discussed in note 29, the Group has covenanted to provide security in favour of the
Trustee of the Vodafone Group UK Pension Scheme in respect of the funding deficit in the scheme. The initial security takes the form of a Japanese law share pledge over
400,000 class 1 preferred shares of ¥200,000 in BB Mobile Corp, a subsidiary of SoftBank.
Current short-term investments of £388 million (2009: £nil) are classified as available-for-sale and consist of index linked government bonds which are held on an effective
floating rate basis.