191 notes to the consolidated financial statements

191

Notes to the consolidated financial statements (continued)
14. Investments in associates (continued)
(b) Other associates For all of the group’s investments in associates other than Mo¨ et Hennessy,
summarised financial information, aggregating 100% of the assets and liabilities of each associate,
including acquisition fair value adjustments, is presented below:
2010 2009
£ million £ million
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637 539
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432 412
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,069 951
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (349) (318)
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122) (74)
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (471) (392)
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598 559
Included in other associates is a 19% (2009 – 19%) effective interest held indirectly in Sichuan
ShuiJingFang Co., Ltd. (ShuiJing Fang), a manufacturer and distributor of Chinese white spirits, which
is listed on the Shanghai Stock Exchange. At 30 June 2010, the carrying value of the group’s interest in
ShuiJingFang was £96 million (2009 – £78 million), while the quoted value, based on a share price of
RMB18.41 (2009 – RMB16.54) was £172 million (2009 – £140 million). As at 16 August 2010, the share
price of ShuiJingFang was RMB21.82 per share. Information on potential increase in the group’s
effective interest in ShuiJingFang is given in note 31.
15. Investments in joint ventures
The group consolidates its attributable share of the results and net assets of joint ventures on a
line-by-line basis, measured according to the terms of the arrangements. The group’s principal joint
ventures that are consolidated on a proportional basis are as follows:
Country of Country of Percentage of
incorporation operation equity owned Principal activities
Don Julio BV . . . . . . . . . . . . Netherlands Mexico 50% Production, marketing and
distribution of premium
drinks
Guinness Anchor Berhad . . . Malaysia Malaysia 50% Production, marketing and
distribution of premium
drinks
Mo¨ et Hennessy Diageo
(China) Co Ltd . . . . . . . . . China China 50% Marketing and distribution of
premium drinks
In addition, the group consolidates on a proportional basis a number of other joint ventures involved in
the production, marketing and distribution of premium drinks in Europe, South Africa and the Far
East.
192

Notes to the consolidated financial statements (continued)
15. Investments in joint ventures (continued)
Included in the consolidated financial statements are the following amounts that represent the
group’s interest in the results and assets and liabilities of joint ventures:
2010 2009 2008
£ million £ million £ million
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568 579 516
Operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (495) (535) (474)
Profit before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 44 42
2010 2009
£ million £ million
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 120
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 245
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 365
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (180) (186)
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29) (26)
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (209) (212)
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 153
16. Other investments
Escrow Loans and
account other Total
£ million £ million £ million
Cost less provisions or fair value
At 30 June 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 68 168
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 24 76
Repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (7) (7)
Fair value adjustments and provisions . . . . . . . . . . . . . . . . . . . . . . . . . . (8) 2 (6)
At 30 June 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 87 231
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5 5
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 58 58
Repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (26) (26)
Transfer to the UK Diageo Pension Scheme (note 4 (f)) . . . . . . . . . . . . (147) — (147)
Fair value adjustments and provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (7) (4)
At 30 June 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 117 117
193