192 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Net financial instruments The table below shows the Group’s financial assets and liabilities that are subject to offset in the balance sheet and the impact of enforceable master netting or similar agreements.
22. Capital and financial risk management (continued) Fair value and carrying value information
The carrying value and valuation basis of the Group’s financial assets are set out in notes 13 ‘Other investments’, 14 ‘Trade and other receivables’ and 19 ‘Cash and cash equivalents’. For all financial assets held at amortised cost the carrying values approximate fair value except as disclosed in note 13 ‘Other investments’. The carrying value and valuation basis of the Group’s financial liabilities are set out in notes 15 ‘Trade and other payables’ and 21 ‘Borrowings’. The carrying values approximate fair value for the Group’s trade payables and other payables categories. For other financial liabilities a comparison of fair value and carrying value is disclosed in note 21 ‘Borrowings’. Level 3 financial instruments Following the completion of the sale of Vodafone Spain on 31 May 2024 (See note 7 ‘Discontinued operations and assets held for sale’), the Group received the non-cash consideration component in the form of €900 million Redeemable Preference Shares (‘RPS’) issued by EJLSHM Funding Ltd (‘EJLSHM’). The RPS were redeemed in January 2026. The Zegona shares were recorded at fair value through profit and loss and had a fair value of €937 million on 31 March 2025. In the prior year, the valuation approach for the Zegona shares reflected the contractual terms of the RPS arrangement and utilised a bespoke option model which drew on observable Level 2 market data inputs, including bond yields, share prices, and foreign exchange rates. The model also includes certain key inputs that requires judgement. These included the timing settlement of the RPS liability to the Group, Zegona’s share price volatility and the share’s expected dividend yield.
Related amounts not set off in the balance sheet
Amounts presented in balance sheet
Right of set off with derivative counterparties
Collateral (liabilities)/
Gross amount Amount set off
assets 1 Net amount
At 31 March 2026 Derivative and other financial instrument assets Derivative and other financial instrument liabilities
€m
€m
€m
€m
€m
€m
2,975
– –
2,975
(921) (1,599)
455 278 733
(1,812) 1,163
(1,812) 1,163
921
1,169
Total
–
–
(430)
Related amounts not set off in the balance sheet
Amounts presented in balance sheet
Right of set off with derivative counterparties
Collateral (liabilities)/
Gross amount Amount set off
assets 1 Net amount
At 31 March 2025 Derivative and other financial instrument assets Derivative and other financial instrument liabilities
€m
€m
€m
€m
€m
€m
4,197
– –
4,197
(1,146) (2,357)
694 250 944
(1,906) 2,291
(1,906) 2,291
1,146
1,010 (1,347)
Total
–
–
Note: 1. Excludes non-cash collateral of €609 million (2025: €613 million) which is not recognised on balance sheet, but which would become payable to the Group in the event of a counterparty default on the related derivative financial assets. Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Derivative financial instruments that do not meet the criteria for offset could be settled net in certain circumstances under ISDA (‘International Swaps and Derivatives Association’) agreements where each party has the option to settle amounts on a net basis in the event of default from the other. Collateral may be offset and net settled against derivative financial instruments in the event of default by either party. The aforementioned collateral balances are recorded in notes 13 ‘Other investments’ or 21 ‘Borrowings’ respectively.
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