197 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
25. Post employment benefits (continued) Fair value of plan assets Cash and cash equivalents Equity investments: With quoted prices in an active market Without quoted prices in an active market Debt and derivative instruments: With quoted prices in an active market Without quoted prices in an active market 1 Property: With quoted prices in an active market Without quoted prices in an active market Annuity policies Without quoted prices in an active market Note: 1. Includes immaterial amounts of derivative instruments. Total Investment funds
Sensitivity analysis Measurement of the Group’s defined benefit retirement obligation is sensitive to changes in certain key assumptions. The sensitivity analysis below shows how a reasonably possible increase or decrease in a particular assumption would, in isolation, result in an increase or decrease in the present value of the defined benefit obligation as at 31 March 2026. Rate of increase Rate of inflation in salaries Discount rate Life expectancy Decrease by 0.5% Increase by 0.5% Decrease by 0.5% Increase by 0.5% Decrease by 0.5% Increase by 0.5% Decrease by 1 year
2026 €m 35
2025 €m 61
450 35
471 37
Increase by 1 year
€m
€m
€m
€m
€m
€m
€m
€m
1,140 1,599
1,042 1,719
(Decrease)/increase in the present value of the defined benefit obligation 1
(158) 169
(2)
2 253 (229) (119) 117
12 291 602
17 313 572
Note: 1. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another. In presenting this sensitivity analysis, the change in the present value of the defined benefit obligation has been calculated on the same basis as prior years using the projected unit credit method at the end of the year, which is the same as that applied in calculating the defined benefit obligation liability recognised in the statement of financial position. The rate of inflation assumption sensitivity factors in the impact of changes to all assumptions relating to inflation including the rate of increase in salaries, pension increases and deferred revaluations.
575 4,739
622 4,854
The fair value of plan assets, which have been measured in accordance with IFRS 13 ‘Fair Value Measurement’, are analysed by asset category above and are subdivided by assets that have a quoted market price in an active market and those that do not, such as investment funds. Where available, the fair values are quoted prices (e.g. listed equity, sovereign debt and corporate bonds). Unlisted investments without quoted prices in an active market (e.g. private equity) are included at values provided by the fund manager in accordance with relevant guidance. Other significant assets are valued based on observable inputs such as yield curves. The Vodafone UK plan annuity policies fully match the pension obligations of those pensioners insured and therefore are set equal to the present value of the related obligations. Investment funds of €602 million at 31 March 2026 (2025: €572 million) includes investments in private equity and investment grade corporate bond funds held across both sections of the Vodafone UK plan. The actual return on plan assets over the year to 31 March 2026 was a gain of €202 million (2025: €238 million loss).
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