184 Vodafone Group Plc Annual Report 2025
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 instruments: With quoted prices in an active market Without quoted prices in an active market Property: With quoted prices in an active market Without quoted prices in an active market Derivatives 1 : Without quoted prices in an active market Annuity policies Without quoted prices in an active market 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 2025. Rate of increase Rate of inflation in salaries Discount rate Life expectancy
2025 €m 61
2024 €m 52
471 37
261 293 928 944 16 374
Decrease Increase Decrease Increase Decrease Increase Decrease Increase by 0.5% by 0.5% by 0.5% by 0.5% by 0.5% by 0.5% by 1 year by 1 year €m €m €m €m €m €m €m €m
1,151 683
(Decrease)/increase in the present value of the defined benefit obligation 1
(198) 189
(2)
2 286 (264) (108) 111
17 313 927 572
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.
1,040 580 660 5,148
622 4,854
Total
Note: 1. Derivatives include collateral held in the form of cash. Assets are valued using ‘level 2’ inputs under IFRS 13 ‘Fair Value Measurement’ principles and classified as unquoted accordingly. 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 € 572 million at 31 March 2025 (2024 : € 580 million) include investments in diversified alternative beta funds held in the Vodafone Section of the Vodafone UK plan. The actual return on plan assets over the year to 31 March 2025 was a loss of € 238 million (2024 : € 121 million gain).
Powered by FlippingBook