Vodafone 2025 Annual Report

Vodafone Group Plc Annual Report 2025 217

Strategic report

Governance

Financials

Other information

Adjusted EBITDAaL and Adjusted profit attributable to owners of the parent The table below reconciles Adjusted EBITDAaL and Adjusted profit attributable to owners of the parent to their closest equivalent GAAP measures, being Operating profit and Profit attributable to owners of the parent, respectively.

- Non GAAP measures Unaudited information (continued) Other metrics Non-GAAP measure Purpose -

Definition

FY25

FY24

Adjusted profit attributable to owners of the parent

This metric is used in the calculation of Adjusted basic earnings per share.

Adjusted profit attributable to owners of the parent excludes restructuring costs arising from discrete restructuring plans, amortisation of customer bases and brand intangible assets, impairment losses/reversals, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss, together with related tax effects. Adjusted basic earnings per share is Adjusted profit attributable to owners of the parent divided by the weighted average number of shares outstanding. This is the same denominator used when calculating basic earnings per share.

Reported Adjustments Adjusted

€m

Adjusted EBITDAaL Restructuring costs Interest on lease liabilities Loss on disposal of property, plant & equipment and intangible assets Depreciation and amortisation on owned assets 1 Share of results of equity accounted associates and joint ventures 2 Impairment (charge)/reversal

10,932

– 10,932 11,019

– 11,019

(164) 488

164

–

(703) 440

703

–

– –

488

– –

440

(25)

(34)

(7,569) (123) (4,515) 565 (411) 864 (1,931) (1,478) (2,246) (3,724) (22) (3,746) (4,147) (4,169) 423 (3,746)

605 (6,964) (7,397)

606 (6,791)

276 4,515

153

(96) 64

323 (64) (372)

227

– –

Other income Operating (loss)/profit Investment income Financing costs 3

(565)

372 581

Adjusted basic earnings per share

This performance measure is used in discussions with the investor community.

4,995 4,584 3,665 (247) 617 (1) (1,932) (2,626)

1,196 4,861

–

581

270 (2,356)

(Loss)/profit before taxation Income tax expense 4 (Loss)/profit for the financial year - Continuing operations Loss for the financial year - Discontinued operations (Loss)/profit for the financial year (Loss)/profit attributable to: - Owners of the parent (Continuing) - Owners of the parent (Total Group) - Non-controlling interests (Loss)/profit for the financial year

4,747 1,458

3,269

1,620

1,466

3,086

(788)

(50)

(650)

(700)

6,205 2,481 1,570

816 2,386

–

(65)

–

6,227 2,481 1,505

881 2,386

6,205 2,058 1,205 6,227 2,058 1,140 6,227 2,481 1,505 – 423 365

816 2,021 881 2,021 881 2,386 – 365

Notes: 1. Depreciation and amortisation on owned assets excludes depreciation on leased assets and loss on disposal of leased assets included within Adjusted EBITDAaL. See page 222 for an analysis of depreciation and amortisation. The adjustment of €605 million (FY24: €606 million) relates to amortisation of customer bases and brand intangible assets. 2. See page 222 for a breakdown of the adjustments to Share of results of equity accounted associates and joint ventures to derive Adjusted share of results of equity accounted associates and joint ventures.

3. See ‘Net financing costs’ on page 24 for further analysis. 4. See ‘Adjusted tax metrics’ on page 221 for further analysis.