Vodafone 2026 Annual Report

141 Vodafone Group Plc Annual Report 2026

Strategic report

Governance

Financials

Other information

Consolidated statement of cash flows for the years ended 31 March Inflow from operating activities Cash flows from investing activities Purchase of interests in subsidiaries, net of cash acquired Purchase of interests in associates and joint ventures Purchase of intangible assets Purchase of property, plant and equipment Purchase of investments Disposal of interests in subsidiaries, net of cash disposed Disposal of interests in associates and joint ventures Disposal of property, plant and equipment and intangible assets Disposal of investments Dividends received from investments Cash outflows from discontinued operations Interest received (Outflow)/inflow from investing activities Cash flows from financing activities Proceeds from issue of long-term borrowings Repayment of borrowings Net movement in short-term borrowings Net movement in derivative and other financial instruments Payments for settlement of written put options Purchase of treasury shares Interest paid Issue of ordinary share capital and reissue of treasury shares Dividends paid to non-controlling shareholders in subsidiaries Other transactions with non-controlling shareholders in subsidiaries Equity dividends paid Cash outflows from discontinued operations Outflow from financing activities Net cash (outflow)/inflow Cash and cash equivalents at the beginning of the financial year 1 Exchange loss on cash and cash equivalents Cash and cash equivalents at the end of the financial year 1

1. Basis of preparation This section describes the critical accounting judgements and estimates that management has identified as having a potentially material impact on the Group’s consolidated financial statements and sets out our material accounting policies that relate to the consolidated financial statements as a whole. Where an accounting policy is generally applicable to a specific note to the consolidated financial statements, the policy is described within that note. We have also detailed below the new accounting pronouncements that we will adopt in future years and our current view of the impact they will have on our financial reporting. The consolidated financial statements are prepared in accordance with UK-adopted International Accounting Standards (‘IAS’), with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) and with the requirements of the Companies Act 2006 (the ‘Act’). The consolidated financial statements are prepared on a going concern basis (see page 125). Vodafone Group Plc is incorporated and domiciled in England and Wales (registration number 1833679). The registered address of the Company is Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, England. IFRS requires the Directors to adopt accounting policies that are the most appropriate to the Group’s circumstances. These have been applied consistently to all the years presented, unless otherwise stated. In determining and applying accounting policies, Directors and management are required to make judgements and estimates in respect of items where the choice of specific policy, accounting judgement, estimate or assumption to be followed could materially affect the Group’s reported financial position, results or cash flows and disclosure of contingent assets or liabilities during the reporting period; it may later be determined that a different choice may have been more appropriate. The Group’s critical accounting judgements and key sources of estimation uncertainty are detailed below. Actual outcomes could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods. Management regularly reviews, and revises as necessary, the accounting judgements that significantly impact the amounts recognised in the consolidated financial statements and the estimates that are considered to be ‘critical estimates’ due to their potential to give rise to material adjustments in the Group’s consolidated financial statements in the year to 31 March 2027. As at 31 March 2026, management has identified critical judgements in respect of revenue recognition, lease accounting, the recognition of deferred tax assets, the accounting for tax disputes, valuing assets and liabilities acquired in business combinations, determining whether the Group controls an entity, whether to recognise provisions or to disclose contingent liabilities, the identification of impairment indicators, the determination of whether assets are held for sale and the impacts of climate change. In addition, management has identified critical accounting estimates in relation to the recovery of deferred tax assets, post employment benefits and impairment reviews; estimates have also been identified that are not considered to be critical in respect of the allocation of revenue to goods and services, the useful economic lives of finite lived intangible assets and property, plant and equipment.

2026 €m

2025 €m

2024 €m

Note

14,291

15,373

16,557

(193) (729) (2,447) (4,871) (1,060) (131)

(9)

–

27 12

(321) (2,375) (4,324) (3,499) 11,221 3,021

(75) (2,641) (4,219) (1,233) (67) 500 1,931 442 542 (1,317) (6,122) 1,533 (8,970) (1,636) 15 144 (2,227) (493)

209 3,601 818 545

737 530 556 (787)

–

(4,238)

4,759 4,680

6,081

(11,924) (12,963)

(502)

404 (2,705) (1,868)

(2,257) (2,041)

– 2

– 3

(1,093)

(1,787)

(2,430)

(245)

(249)

(260)

100

(16) (1,503) (5,420) 11,628 (94)

–

(879)

(11,806) (15,278) (15,855)

(1,753) 10,893 (227)

4,854 6,114

(75)

8,913

10,893

6,114

Note: 1. Comprises cash and cash equivalents as presented in the consolidated statement of financial position of €8,982 million (€11,001 million as at 31 March 2025), together with overdrafts of €69 million (€108 million as at 31 March 2025).