234 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Non-GAAP measures - Unaudited information (continued) Financing and Taxation metrics Non-GAAP measure Purpose Definition Adjusted net financing costs This metric is used by both management and the investor community. This metric is used in the calculation of Adjusted basic earnings per share.
Non-GAAP measure Purpose
Definition
Adjusted share of results of equity accounted associates and joint ventures used in Post-tax ROCE
This metric is used in the calculation of Post-tax ROCE (controlled and associates/joint ventures).
Share of results of equity accounted associates and joint ventures excluding restructuring costs and other income and expense.
Adjusted net financing costs exclude mark-to- market and foreign exchange gains/losses, together with fair value movements on Other investments through profit and loss. Adjusted profit before taxation excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss. Adjusted income tax expense excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss. It also excludes deferred tax movements relating to tax losses in Luxembourg as well as other significant one-off items. Adjusted income tax expense (see above) divided by Adjusted profit before taxation (see above). Share of results of equity accounted associates and joint ventures excluding restructuring costs, amortisation of acquired customer bases and brand intangible assets and other income and expense.
Adjusted tax metrics The table below reconciles Profit before taxation and Income tax expense to Adjusted profit before taxation, Adjusted income tax expense and Adjusted effective tax rate. FY26 FY25 €m €m Profit/(loss) before taxation 1,864 (1,478) Adjustments to derive Adjusted profit before tax 1,904 4,747 Adjusted profit before taxation 3,768 3,269 Adjusted share of results of equity accounted associates and joint ventures (218) (153) Adjusted profit before tax for calculating Adjusted effective tax rate 3,550 3,116 Income tax expense (1,805) (2,246) Tax on adjustments to derive Adjusted profit before tax (291) 8 Adjustments: - Deferred tax on rate change in Germany 305 – - Deferred tax on use of Luxembourg losses in the year 307 423 - Derecognition of certain UK deferred tax assets 358 – - UK corporate interest restriction 23 16 - Tax relating to inflation-related adjustments in T ü rkiye 105 146 - Deferred tax on rate change in Luxembourg – 718 - Settlement of the VISPL tax cases – 185 - Other – (38) Adjusted income tax expense for calculating Adjusted tax rate (998) (788) Adjusted effective tax rate 28.1% 25.3%
Adjusted profit before taxation
This metric is used in the calculation of the Adjusted effective tax rate (see below).
Adjusted income tax expense
This metric is used in the calculation of the Adjusted effective tax rate (see below).
Adjusted effective tax rate Adjusted share of results of equity accounted associates and joint ventures
This metric is used by both management and the investor community. This metric is used in the calculation of the Adjusted effective tax rate.
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