Vodafone 2007 Annual Report Download - page 116

114 Vodafone Group Plc Annual Report 2007
Notes to the Consolidated Financial Statements
continued
14. Investments in associated undertakings
The Company’s principal associated undertakings 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 associated undertakings is also their principal place of operation. The accounts of the associated
undertakings are drawn up to 31 March 2007 for inclusion in the Consolidated Financial Statements. The latest statutory financial statements of the
associated undertakings were drawn up to 31 December 2006. Summarised financial information of associated undertakings is disclosed in note 37.
Percentage(1)(3)(4)
Country of shareholding/
incorporation or partnership
Name Principal activity registration interest
Cellco Partnership(2) Mobile network operator USA 45.0
Société Française du Radiotéléphone S.A. Mobile network and fixed line operator France 44.0
Notes:
(1) Rounded to nearest tenth of one percent.
(2) Cellco Partnership trades under the name Verizon Wireless. The principal office of the partnership is One Verizon Way, Basking Ridge, New Jersey, 07920 USA whilst the registered office is
CSC – the Corporation Service Company, 2711 Centreville Road, Suite 400, Wilmington, DE 19808, USA.
(3) On 3 November 2006, the Group disposed of its 25% interest in Belgacom Mobile S.A. See note 29 for further information.
(4) On 20 December 2006, the Group disposed of its 25% interest in Swisscom Mobile A.G. See note 29 for further information.
The Group’s share of the aggregated financial information of equity accounted associated undertakings is set out below, and includes the share of results in
Belgacom Mobile S.A. and Swisscom Mobile A.G. up to the date of disposal.
2007 2006 2005
£m £m £m
Revenue 12,919 12,480 10,546
Operating profit 3,390 3,133 2,668
Non-operating income and expense 317 –
Net interest (206) (227) (197)
Income tax expense (398) (443) (448)
Minority interest (61) (52) (43)
Share of result in associated undertakings 2,728 2,428 1,980
2007 2006
£m £m
Non-current assets 25,120 29,055
Current assets 1,998 2,183
Share of total assets 27,118 31,238
Non-current liabilities 2,067 4,141
Current liabilities 4,438 3,468
Minority interests 386 432
Share of total liabilities 6,891 8,041
Share of net assets in associated undertakings 20,227 23,197
15. Other investments
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:
2007 2006
£m £m
Listed securities:
Equity securities 3,915 1,938
Unlisted securities:
Equity securities 634 7
Public debt and bonds 20 20
Other debt and bonds 1,046 –
Cash held in restricted deposits 260 154
5,875 2,119
The fair values of listed securities are based on quoted market prices, and include;
•the Group’s 3.3% 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.
•5.60% of the Group’s investment in Bharti Airtel Limited, which is listed on the National Stock Exchange of India Limited and The Stock Exchange, Mumbai,
and incorporated under the laws of India. Bharti Airtel Limited is a mobile network operator and its principal place of operation is India.
Unlisted equity securities include the 26% interest in Bharti Infotel Private Limited, which is equivalent to a 4.39% economic interest in Bharti Airtel Limited.
Unlisted equity investments are recorded at fair value, or at cost if their fair value cannot be reliably measured as there is no active market upon which they are
traded.
For public debt and bonds and cash held in restricted deposits, the carrying amount approximates the fair value. Other debt and bonds represents preferred
equity and a subordinated loan received as part of the disposal of Vodafone Japan to SoftBank. There was no significant difference between the carrying value
of these items and the fair value at 31 March 2007.
The cumulative unrealised pre-tax gain recognised in the statement of recognised income and expense in respect of equity securities was £2,884 million
(2006: £1,080 million).