Capital allocation ⫶ €4bn capital return programme
Disciplined capital investment
Maintain robust balance sheet
Shareholder returns
• Country-level capital intensity broadly maintained • Includes extraordinary core network software licence of €300m (5 years), no cash impact in FY25
• New leverage policy of 2.25x – 2.75x net debt to Adjusted EBITDAaL • Targeting the bottom half of the range • M&A incl. €4.1bn Spain disposal & €1.3bn Vantage Towers 10% sell down
Rebased ordinary dividend • FY25 total ordinary dividend rebased to 4.5c • Ambition to grow dividend over time Capital returns • Delivered €1 billion 2 of €2 billion buybacks following completion of sale of Spain (FY25) • €2 billion buybacks upon completion of sale of Italy (FY26) • Subsequent review of potential for further capital return
Capital intensity (%)
Leverage & net debt progression (€billion)
0.9
1.2
0.1
1.0
19%
c.1%
Extraordinary licence
€33.2bn
(4.6)
Country-level capital intensity broadly maintained excl. one- off software licence
17%
c.17%
€31.8bn
FY24 2.5x Net debt/ Adj. EBITDAaL 1
H1 FY25 2.6x Net debt/ Adj. EBITDAaL
1
FY24 Adjusted FCF H1 FY25
Spectrum & restructuring
Dividends
Share buybacks
M&A & Other
H1 FY25
FY23
FY24
FY25e
1. FY24 ratio is pro forma for FX and M&A (incl. Vodafone Italy & Spain, excl. Hungary, Ghana & Vantage Towers); H1 FY25 ratio is pro forma for FX and M&A (incl. Vodafone Italy, excl. Vodafone Spain). Both periods exclude the impact of hyperinflationary accounting in Turkey. 2. As at 11/11/2024.
H1 FY25 results ⫶ November 2024
12
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