233 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
ROCE using non-GAAP measures The table below presents the calculation of ROCE using non-GAAP measures and reconciliations to the closest equivalent GAAP measure. FY26 FY25 €m €m Operating profit/(loss) 2,844 (411) Interest on lease liabilities (615) (488) Restructuring costs 370 164 Other expense/(income) 88 (565) Share of results of equity accounted associates and joint ventures 382 123 Impairment charge – 4,515 Other adjustments 1 412 399 Adjusted operating profit for calculating pre-tax ROCE (controlled) 3,481 3,737 Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE 2 110 (159) Notional tax at Adjusted effective tax rate 3 (1,009) (905) Adjusted operating profit for calculating post-tax ROCE (controlled and associates/joint ventures) 2,582 2,673 Capital employed for calculating ROCE on a GAAP basis 91,448 86,661 Adjustments to exclude: - Leases (12,388) (10,826) - Deferred tax assets (18,068) (19,033) - Deferred tax liabilities 1,043 798 - Taxation recoverable (186) (174) - Taxation liabilities 555 578 - Other investments (2,437) (2,660) - Associates and joint ventures (6,564) (6,796) - Pension assets and liabilities (82) (55) - Other adjustments 1 (1,196) (1,193) Adjusted capital employed for calculating pre-tax ROCE (controlled) 52,125 47,300 Associates and joint ventures 6,564 6,796 Adjusted capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 58,689 54,096 Average capital employed for calculating pre-tax ROCE (controlled) 52,563 53,146 Average capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 59,322 61,030 Pre-tax ROCE (controlled) 6.6% 7.0% Post-tax ROCE (controlled and associates/joint ventures) 4.4% 4.4% Notes: 1. Comprises adjustments to exclude hyperinflationary accounting in Türkiye. 2. Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE is a non-GAAP measure and excludes restructuring costs and other income. 3. Includes tax at the Adjusted effective tax rate of 28.1% (FY25: 25.3%).
Non-GAAP measures - Unaudited information (continued) ROCE using GAAP measures The table below presents the calculation of ROCE using GAAP measures as reported in the consolidated income statement and consolidated statement of financial position. FY26 FY25 €m €m Operating profit/(loss) 1 2,844 (411) Borrowings 52,636 53,143 Cash and cash equivalents (8,982) (11,001) Derivative and other financial instruments included in trade and other receivables (2,975) (4,197) Derivative and other financial instruments included in trade and other payables 1,812 1,906 Non-current investments in sovereign securities (915) (913) Short-term investments (3,431) (5,280) Collateral assets (1,169) (1,010) Financial liabilities under put option arrangements 107 97 Equity 54,365 53,916 Capital employed at end of the year 91,448 86,661 Average capital employed for the year 89,055 95,898 ROCE using GAAP measures 3.2% (0.4)% Note: 1. Operating profit/(loss) includes Other (expense)/income which includes merger and acquisition activity that is non-recurring in nature.
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