Vodafone 2024 Annual Report

29 Vodafone Group Plc Annual Report 2024

Strategic report



Other information

Cash flow, capital allocation and funding Analysis of cash flow FY24 €m FY23 €m

Re-presented 1 FY23 €m

FY24 €m

Reported change % (11.3)

Adjusted EBITDAaL 2 Capital additions 3 Working capital

11,019 12,424 (6,331) (7,067)

Reported change %

Inflow from operating activities Outflow from investing activities Outflow from financing activities Net cash outflow Cash and cash equivalents at beginning of the financial year Exchange gain on cash and cash equivalents Cash and cash equivalents at the end of the financial year

16,557 18,054 (15,855) (13,430) (6,122)




(379) (1,515.3)

Disposal of property, plant and equipment and intangible assets Integration capital additions Restructuring costs including working capital movements 4 Licences and spectrum Interest received and paid 5 Dividends received from associates and joint ventures Dividends paid to non-controlling shareholders in subsidiaries Taxation Free cash flow 2 Acquisitions and disposals Equity dividends paid Share buybacks 5 Foreign exchange gain/(loss) Other movements in net debt 6 Net debt decrease 2 Opening net debt 2 Other Closing net debt 2 Net debt of Vodafone Spain and Vodafone Italy 2 Closing net debt incl. Vodafone Spain and Vodafone Italy 2 Free cash flow 2 Adjustments: – Licences and spectrum – Restructuring costs including working capital movements 4 – Integration capital additions – Vantage Towers growth capital expenditure – Other adjustments 7 Adjusted free cash flow 2

14 (81)



(200) (249) (773)

(5,420) 4,245 (227.7)

(254) (454)

11,628 7,371



(1,279) (1,172) (724) (1,228)

6,114 11,628 Cash inflow from operating activities decreased to €16,557 million reflecting lower operating profit, excluding a lower share of results in equity accounted associates and joint ventures and a net gain in the prior year resulting from the sale of Vantage Towers, Vodafone Ghana and Vodafone Hungary, and adverse working capital movements, which offset lower taxation payments. Outflows from investing activities increased to €6,122 million, primarily in relation to the decrease in proceeds received in the prior year from disposal of interests in subsidiaries and a lower net inflow in respect of short-term investments, which outweighed proceeds from the sale of 3.9% of Oak Holdings 1 GmbH and the decrease in the purchase of intangible assets and property, plant and equipment in the year. Short-term investments include highly liquid government and government-backed securities and managed investment funds that are in highly rated and liquid money market investments with liquidity of up to 90 days. Outflows from financing activities increased to €15,855 million as higher net cash outflows in respect of borrowings, primarily arising from movements in collateral balances, outweighed lower outflows in relation to the purchase of treasury shares and in respect of discontinued operations.




(400) 164


1,783 2,583 (346) 8,727 (2,430) (2,484) - (1,893) 8 6,461 (33,250) (39,711) (33,242) (33,250) (64) 141 (613) 1,065





(33,349) (33,375) 1,783 2,583




254 81

249 200 497 (163)



2,600 4,139

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. Adjusted EBITDAaL, Free cash flow, Adjusted free cash flow and Net debt are non-GAAP measures. See page 235 for more information. 3. See page 248 for an analysis of tangible and intangible additions in the year. 4. Includes working capital in respect of integration capital additions. 5. Interest received and paid excludes €406 million outflow (FY23: €296 million) in relation to the cash portion of interest on lease liabilities included within Adjusted EBITDAaL, and €nil of cash flow (FY23: €26 million outflow) from the option structures relating to the issue of the mandatory convertible bonds which is included within Share buybacks. The share buyback programmes completed on 15 March 2023. 6. Other movements in net debt for FY24 includes a net inflow from discontinued operations of €455 million (FY23: €1,175 million outflow), mark-to-market losses recognised in the income statement of €97 million (FY23: €534 million gain) and of €185 million (FY23: €371 million) for the repayment of debt in relation to licences and spectrum. 7. The amount for FY23 includes €120 million received in respect of the Group’s fibre joint venture in Germany and an allocation of €43 million from the Vodafone Hungary proceeds for future services to be provided by the Group.

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