Vodafone 2024 Annual Report

186 Vodafone Group Plc Annual Report 2024

Notes to the consolidated financial statements (continued) 186 Vodafone Group Plc Annual Report 2024 2020 18. Reconciliation of net cash flow from operating activities The table below shows how our profit for the year from continuing operations translates into cash flows generated from our operating activities. Re-presented 1 Re-presented 1 2024 2023 2022 Notes €m €m €m Profit for the financial year 1,505 12,335 2,773 Loss/(Profit) for the financial year from discontinued operations 65 247 (185) Profit for the financial year from continuing operations 1,570 12,582 2,588 Investment income 5 (581) (232) (251) Financing costs 5 2,626 1,609 1,842 Income tax expense 6 50 492 1,561 Operating profit 3,665 14,451 5,740 Adjustments for: Share-based payments and other non-cash charges 98 58 165 Depreciation and amortisation 10, 11 10,414 10,255 10,417 Loss on disposal of property, plant and equipment and intangible assets 34 33 40 Share of result of equity accounted associates and joint ventures 12 96 (433) (389) Impairment (reversal)/loss 4 (64) 64 – Other income 3 (372) (9,402) (244) Decrease / (increase) in inventory 177 (168) (171) (Increase)/decrease in trade and other receivables 14 (597) (486) (629) Increase/(decrease) in trade and other payables 15 534 1,446 581 Cash generated by operations 13,985 15,818 15,510 Net tax paid (724) (1,228) (916) Cashflows from discontinued operations 3,296 3,464 3,487 Net cash flow from operating activities 16,557 18,054 18,081 Note: 1 The results for the years ended 31 March 2023 and 31 March 2022 have been re-presented to reflect that the results of Vodafone Spain and Vodafone Italy are now reported as discontinued operations. See note 7 ‘Discontinued operations and assets held for sale’ for more information. 19. Cash and cash equivalents The majority of the Group’s cash is held in bank deposits or money market funds which have a maturity of three months or less from acquisition to enable us to meet our short-term liquidity requirements. Accounting policies Cash and cash equivalents comprise cash and bank deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Assets in money market funds, whose contractual cash flows do not represent solely payments of interest and principal, are measured at fair value with gains and losses arising from changes in fair value included in net profit or loss for the period. All other cash and cash equivalents are measured at amortised cost. 2024 2023 €m €m Cash and bank deposits 1 4,168 3,924 Money market funds 2 2,015 7,781 Cash and cash equivalents as presented in the consolidated statement of financial position 6,183 11,705 Bank overdrafts (111) (77) Cash and cash equivalents of discontinued operations 42 – Cash and cash equivalents as presented in the consolidated statement of cash flows 6,114 11,628 Note: 1 Includes bank deposits under repurchase agreements of €2,034 million (2023: €1,750 million). 2 Items are measured at fair value and the valuation basis is level 1 classification, which comprises financial instruments where fair value is determined by unadjusted quoted prices in active markets. The carrying amount of balances at amortised cost approximates their fair value. Cash and cash equivalents of €1,629 million (2023: €1,572 million) are held in countries with restrictions on remittances but where the balances could be used to repay subsidiaries’ third party liabilities. In addition, those balances could also be used to repay €790 million (2023: €722 million) of intercompany liabilities as at 31 March 2024. Strategic report Governance Financials Other information

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