Vodafone 2025 Annual Report

218 Vodafone Group Plc Annual Report 2025

Strategic report

Governance

Financials

Other information

Cash flow, funding and capital allocation metrics

- Non GAAP measures Unaudited information (continued) -

Adjusted basic earnings per share earnings per share, is provided below.

Non-GAAP measure Purpose

Definition

The reconciliation of Adjusted basic earnings per share to the closest equivalent GAAP measure, Basic

Free cash flow

Internal performance reporting. External metric used by the investor Assists comparability with other community. companies, although our metric may not be directly comparable to similarly titled measures used by other companies.

Free cash flow is Adjusted EBITDAaL after cash flows in relation to capital additions, working capital movements including in respect of capital additions, disposal of property, plant and equipment and intangible assets, integration capital additions and restructuring costs, together with related working capital, licences and spectrum, interest received and paid (excluding interest on bank borrowings secured against Indian assets), taxation, dividends received from associates and joint ventures, dividends paid to non- controlling shareholders in subsidiaries, payments in respect of lease liabilities and other. Adjusted free cash flow is Free cash flow before licences and spectrum, restructuring costs arising from discrete restructuring plans, integration capital additions and working capital related Non-current borrowings and current borrowings, excluding lease liabilities, collateral liabilities and borrowings specifically secured against Indian assets. equivalents, short-term investments, non-current investments in sovereign securities, derivative financial Gross debt less cash and cash instruments excluding mark-to-market adjustments and net collateral assets. items and M&A.

FY25 €m

FY24 €m

(Loss)/profit attributable to owners of the parent Adjusted profit attributable to owners of the parent

(4,169) 2,058 Million 26,149

1,140 2,021

Million 27,056

Weighted average number of shares outstanding - Basic

eurocent eurocent (15.94)c 4.21c 7.87c 7.47c

Basic (loss)/earnings per share Adjusted basic earnings per share

Adjusted free cash

Internal performance reporting. External metric used by the investor Setting director and management community. remuneration. Key external metric used to evaluate liquidity and the cash generated by our operations. Prominent metric used by debt rating agencies and the investor community.

flow

Gross debt

Net debt

Prominent metric used by debt rating agencies and the investor community.

Powered by