Vodafone 2024 Annual Report

246 Vodafone Group Plc Annual Report 2024 246 Vodafone Group Plc Annual Report 2024

Strategic report

Governance

Financials

Other information

Non-GAAP measures (continued) Unaudited information Financing and Taxation metrics Non-GAAP measure Purpose

Definition

Adjusted net financing costs

This metric is used by both management and the investor community. This metric is used in the calculation of Adjusted basic earnings per share. This metric is used in the calculation of the Adjusted effective tax rate (see below).

Adjusted net financing costs exclude mark-to-market and foreign exchange gains/losses.

Adjusted profit before taxation

Adjusted profit before taxation excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense and mark-to-market and foreign exchange movements. Adjusted income tax expense excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense and mark-to-market and foreign exchange movements. It also excludes deferred tax movements relating to tax losses in Luxembourg as well as other significant one- off items. Adjusted income tax expense (see above) divided by Adjusted profit before taxation (see above). Share of results of equity accounted associates and joint ventures excluding restructuring costs, amortisation of acquired customer base and brand intangible assets and other income and expense. Share of results of equity accounted associates and joint ventures excluding restructuring costs and other income and expense.

Adjusted income tax expense

This metric is used in the calculation of the Adjusted effective tax rate (see below).

Adjusted effective tax rate This metric is used by both management and the investor community. This metric is used in the calculation of Adjusted effective tax rate.

Adjusted share of results of equity accounted associates and joint ventures Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE

This metric is used in the calculation of post-tax ROCE (controlled and associates/joint ventures).

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