155 Vodafone Group Plc Annual Report 2026
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4. Impairment losses (continued) Year ended 31 March 2025 The disclosures below for the year ended 31 March 2025 are as previously disclosed in the Annual Report for the year ended 31 March 2025. For the year ended 31 March 2025, the Group recorded impairment charges of €4.4 billion and €0.2 billion with respect to the Group’s investments in Germany and Romania respectively. The impairment charges relate solely to goodwill and are recognised in the consolidated income statement within operating loss. The goodwill impairment charges reflect management’s latest assessment of likely trading and economic conditions, including the drivers of the reduction in Germany EBITDAaL from the year ended 31 March 2024 to the year ended 31 March 2025, in the five-year business plan. The carrying values of Germany and Romania have been reduced to their value in use estimates of €30.9 billion and €0.6 billion respectively. Value in use assumptions The table below shows key assumptions used in the value in use calculations of Germany and Romania: Assumptions used in value in use calculations Germany Romania % % Pre-tax discount rate 7.8 11.0 Long-term growth rate 1.2 2.5 Projected adjusted EBITDAaL CAGR 1 1.3 1.5 Projected capital expenditure 2 17.6 - 20.7 9.2 - 11.0 Sensitivity analysis The recoverable amount estimate of the UK exceeds carrying value by €1.0 billion. If the assumptions used in the impairment review were changed to a greater extent than as presented in the following table, the changes would, in isolation, lead to an impairment loss being recognised for the year ended 31 March 2025. Change required for carrying value to equal recoverable amount UK pps Pre-tax discount rate 1.5 Long-term growth rate (1.4) Projected adjusted EBITDAaL CAGR 1 (2.0) Projected capital expenditure 2 3.3 Notes: 1. Projected adjusted EBITDAaL CAGR is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing. 2. Projected capital expenditure, which excludes licences and spectrum, is expressed as capital expenditure as a percentage of revenue in the initial five years for all cash-generating units of the plans used for impairment testing.
For the Group’s operations in Germany and Romania management has prepared the following sensitivity analysis to the base case recoverable amount less carrying value for changes in pre-tax discount rate and projected adjusted EBITDAaL CAGR 1 assumptions. The associated impact of the change in each key assumption does not consider any consequential impact on other assumptions used in the impairment review. Recoverable amount less carrying value Germany Romania €bn €bn Base case (prior to impairment charge recognition) (4.4) (0.2) Change in pre-tax discount rate Decrease by 0.5pps (1.7) (0.1) Increase by 0.5pps (6.6) (0.2) Change in projected adjusted EBITDAaL CAGR 1 Decrease by 2.0pps (7.6) (0.2) Increase by 2.0pps (0.8) (0.1) Note: 1. Projected adjusted EBITDAaL CAGR is expressed as the compound annual growth rates in the initial five years for all cash-generating units of the plans used for impairment testing.
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