245 Vodafone Group Plc Annual Report 2024 245 Vodafone Group Plc Annual Report 2024
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Return on Capital Employed (‘ROCE’) : Non-GAAP basis The table below presents the calculation of ROCE using non-GAAP measures and reconciliations to the closest equivalent GAAP measure. Re-presented 1 FY24 2 FY23 2 €m €m Operating profit 3,665 14,451 Interest on lease liabilities (440) (355) Restructuring costs 703 538 Other income (372) (9,402) Share of results of equity accounted associates and joint ventures 96 (433) Impairment (reversal)/loss (64) 64 Other adjustments 3 296 (413) Adjusted operating profit for calculating pre-tax ROCE (controlled) 3,884 4,450 Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE 4 (116) 430 Notional tax at Adjusted effective tax rate 5 (923) (1,249) Adjusted operating profit for calculating post-tax ROCE (controlled and associates/joint ventures) 2,845 3,631 Capital employed for calculating ROCE on a GAAP basis 105,134 110,407 Adjustments to exclude: - Leases (9,672) (13,364) - Deferred tax assets (20,177) (19,316) - Deferred tax liabilities 699 771 - Taxation recoverable (76) (279) - Taxation liabilities 393 457 - Other investments (1,543) (1,781) - Investments in associates and joint ventures (10,032) (11,079) - Pension assets and liabilities (76) (71) - Removal of capital employed related to discontinued operations (12,129) (12,180) - Other adjustments 3 (1,009) (877) Adjusted capital employed for calculating pre-tax ROCE (controlled) 51,512 52,688 Investments in associates and joint ventures 2 10,032 11,079 Adjusted capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 61,544 63,767 Average capital employed for calculating pre-tax ROCE (controlled) 2 52,100 54,440 Average capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 2 62,656 59,713 Pre-tax ROCE (controlled) 7.5% 8.2% Post-tax ROCE (controlled and associates/joint ventures) 4.5% 6.1% Notes: 1 The results for the year ended 31 March 2023 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’ in the consolidated financial statements for more information. 2 FY23 ROCE calculations exclude the results of Vantage Towers until its disposal on 22 March 2023 and the investment in Oak Holdings 1 GmbH from that date. FY23 capital employed for calculating post-tax ROCE (controlled and associates/joint ventures), FY22 Capital employed for calculating pre-tax ROCE (controlled) and FY22 capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) have been adjusted to €57,911 million, €56,192 million and €61,515 million, respectively, for the purposes of calculating relevant FY23 averages. 3 Comprises adjustments to exclude hyperinflationary accounting in Turkey. 4 Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE is a non-GAAP measure and excludes restructuring costs and other income. 5 Includes tax at the Adjusted effective tax rate of 24.5% (FY23: 25.6%).
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