Vodafone 2025 Annual Report

Vodafone Group Plc Annual Report 2025 131

Strategic report

Governance

Financials

Other information

Consolidated statement of cash flows for the years ended 31 March Inflow from operating activities Cash flows from investing activities Purchase of interests in subsidiaries, net of cash acquired Purchase of interests in associates and joint ventures Purchase of intangible assets Purchase of property, plant and equipment Purchase of investments Disposal of interests in subsidiaries, net of cash disposed Disposal of interests in associates and joint ventures Disposal of property, plant and equipment and intangible assets Dividends received from associates and joint ventures Disposal of investments Cash outflows from discontinued operations Inflow/(outflow) from investing activities Cash flows from financing activities Proceeds from issue of long-term borrowings Repayment of borrowings Net movement in short-term borrowings Net movement in derivatives Payments for settlement of written put options Interest paid Purchase of treasury shares Issue of ordinary share capital and reissue of treasury shares Dividends paid to non-controlling shareholders in subsidiaries Other transactions with non-controlling shareholders in subsidiaries Cash outflows from discontinued operations Equity dividends paid Outflow from financing activities Net cash inflow/(outflow) Cash and cash equivalents at the beginning of the financial year 1 Exchange (loss)/gain on cash and cash equivalents Cash and cash equivalents at the end of the financial year 1 Interest received

1. Basis of preparation This section describes the critical accounting judgements and estimates that management has identified as having a potentially material impact on the Group’s consolidated financial statements and sets out our material accounting policies that relate to the financial statements as a whole. Where an accounting policy is generally applicable to a specific note to the financial statements, the policy is described within that note. We have also detailed below the new accounting pronouncements that we will adopt in future years and our current view of the impact they will have on our financial reporting. The consolidated financial statements are prepared in accordance with UK-adopted International Accounting Standards (‘IAS’), with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) and with the requirements of the Companies Act 2006 (the ‘Act’). The consolidated financial statements are prepared on a going concern basis (see page 117). Vodafone Group Plc is incorporated and domiciled in England and Wales (registration number 1833679). The registered address of the Company is Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, England. IFRS requires the Directors to adopt accounting policies that are the most appropriate to the Group’s circumstances. These have been applied consistently to all the years presented, unless otherwise stated. In determining and applying accounting policies, Directors and management are required to make judgements and estimates in respect of items where the choice of specific policy, accounting judgement, estimate or assumption to be followed could materially affect the Group’s reported financial position, res ults or cash flows and disclosure of contingent assets or liabilities during the reporting period; it may later be determined that a different choice may have been more appropriate. The Group’s critical accounting judgements and key sources of estimation uncertainty are detailed below. Actual outcomes could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods. Management regularly reviews, and revises as necessary, the accounting judgements that significantly impact the amounts recognised in the financial statements and the estimates that are considered to be ‘critical estimates’ due to their potential to give rise to material adjustments in the Group’s financial statements in the year to 31 March 2026. As at 31 March 2025, management has identified critical judgements in respect of revenue recognition, lease accounting, the recognition of deferred tax assets, the accounting for tax disputes, valuing assets and liabilities acquired in business combinations, whether to recognise provisions or to disclose contingent liabilities and the impacts of climate change. In addition, management has identified critical accounting estimates in relation to the recovery of deferred tax assets, post employment benefits, the valuation of compensation payable under one of the legal claims against the Group and impairment reviews; estimates have also been identified that are not considered to be critical in respect of the allocation of revenue to goods and services, the useful economic lives of finite lived intangible assets and property, plant and equipment.

2025 €m

2024 €m

2023 €m

Note

15,373

16,557

18,054

(9)

–

(321) (2,375) (4,324) (3,499) 11,221 3,021

(75) (2,641) (4,219) (1,233) (67) 500 1,931 442 542 (1,317) (6,122) 15

(78) (2,799) (4,957) (766) 6,976 1,647 617 321 (1,430) (379) – 90 4,071 3,171 261 (1,815) (12) (1,867) 10 (2,484)

737 530 556 (787)

4,759 4,680 (12,963) (2,705) (1,868) 3 78 404 – (1,787)

1,533

(8,970) (10,501)

(1,636) 144 (2,227) (493)

– 3

(2,430)

(249) 8 (879)

(260)

(400)

(16) (1,503) (5,420) 11,628 (94)

(692) (3,172) 4,245

(15,278) (15,855) (13,430)

4,854 6,114

7,371 12

(75)

10,893

6,114

11,628

Note: 1. Comprises cash and cash equivalents as presented in the consolidated statement of financial position of €11,001 million (€6,183 million as at 31 March 2024), together with overdrafts of € 108 million (€111 million as at 31 March 2024) and € Nil million (€42 million as at 31 March 2024) of cash and cash equivalents included within Assets held for sale.