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Vodafone Group Plc. FY25 Q&A Transcript JP Morgan
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Ottavio Adorisio Bernstein
My question is again on free cash flow. You provided a good breakdown on slide 23, where you see Germany only 33% of adjusted free cash flow. There is a mismatch between that number and the one calculates when it does the operating free cash flow, EBITDAaL minus CAPEX, where Germany is around 47%. The question is that, do you book all the interest in hard currency in Germany? The €19 billion of tax assets this quarter in Luxembourg, you cannot use for to offset again German taxes? Again, on free cash flow, you received around €307 million from Vantage Towers this year. Last time Vantage Towers was listed, it was generating around €430 million of cash. If I do pro rata, it looks that you are overdistributing Vantage Towers. Are you over-gearing the balance sheet like you do for VodafoneZiggo, or it is just organically generated? So maybe just an observation and then hand over to Luka for the detail. I suspect your numbers are from pre-UK merger, Octavio, because even on EBITDAaL, that is not what you find in our results for FY25. But more broadly, Luka? I think you are probably referring to the slide that has the distribution of free cash flow generation across markets. That is a very simplified view, obviously. So from that perspective, we should not one-to-one try to reconcile this with the Group numbers. Yes. But everything is attributed fairly. There is no extra interest or other things. It is EBITDAaL minus CAPEX with then an attribution of interest across the markets irrespective of if you want specific technical elements. It is what you would expect to do. What is in there, just to be clear, is indeed the Vodafone Investments dividends, of course, and all the dividends that the Group received because it is a breakdown of free cash flow. It is not a breakdown of EBITDAaL. The full perimeter, including the Vodafone Investments division which is 9% in the slides, comes into play. There, maybe if I can just add then on the Vantage Towers results. Actually, this is underpinned by the performance of Vantage Towers, which has been growing, both revenues as well as profits quite reliably, and if I can add that, obviously, has their own investments as well, which includes INWIT, for example, which is doing very well and will actually provide a special dividend in FY26 that will provide support as well. So, in that respect, this is just a reflection of the strong performance of Vantage Towers that allows us to distribute dividends, not only to us, by the way, but also to our co-shareholders from the consortium.
Margherita Della Valle Vodafone
Luka Mucic Vodafone
Margherita Della Valle Vodafone
Luka Mucic Vodafone
Ottavio Adorisio Bernstein
So, you would expect to extract around €300 million of dividends from Vantage going forward annually?
Luka Mucic Vodafone
There is no reason to not expect the same dividend levels from Vantage.
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