156 Vodafone Group Plc Annual Report 2026
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4. Impairment losses (continued) Year ended 31 March 2024 The disclosures below for the year ended 31 March 2024 are as previously disclosed in the Annual Report for the year ended 31 March 2024. Indus Towers Limited Management determined the recoverable amount of the Group’s investment in Indus Towers on a fair value less costs to sell basis. Indus Towers’ share price was observable in a quoted market and was considered a level 1 input under the fair value hierarchy in IFRS 13 ‘Fair Value Measurement’. The share price of INR291.15 per share implied a recoverable amount of INR165 billion (€1.8 billion), which exceeded the carrying value of the Group’s investment at the same date. The increase in recoverable amount supported the reversal of the prior year impairment of €64 million. Value in use assumptions The table below shows key assumptions used in the value in use calculation for Germany as its carrying amount of goodwill is significant in comparison with the Group’s total carrying amount of goodwill. Assumptions used in value in use calculations Germany % Pre-tax discount rate 8.3 Long-term growth rate 1.0 Projected adjusted EBITDAaL CAGR 1 2.4 Projected capital expenditure 2 17.4 - 19.9 Sensitivity analysis The estimated recoverable amounts of the Group’s operations in Germany and the UK exceeded their carrying values by €2.3 billion and €1.6 billion respectively. 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, have led to an impairment loss being recognised for the year ended 31 March 2024. Change required for carrying value to equal recoverable amount Germany UK pps pps Pre-tax discount rate 0.5 2.2 Long-term growth rate (0.4) (2.1) Projected adjusted EBITDAaL CAGR 1 (1.2) (2.9) Projected capital expenditure 2 3.9 4.9 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.
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