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Vodafone Group Plc Annual Report 2025
Strategic report
Governance
Financials
Other information
ROCE on a non-GAAP basis The table below presents the calculation of ROCE using non-GAAP measures and reconciliations to the closest equivalent GAAP measure. FY25 FY24 €m €m Operating (loss)/profit (411) 3,665 Interest on lease liabilities (488) (440) Restructuring costs 164 703 Other income (565) (372) Share of results of equity accounted associates and joint ventures 123 96 Impairment charge/(reversal) 4,515 (64) Other adjustments 1 399 296 Adjusted operating profit for calculating pre-tax ROCE (controlled) 3,737 3,884 Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE 2 (159) (116) Notional tax at Adjusted effective tax rate 3 (905) (923) Adjusted operating profit for calculating post-tax ROCE (controlled and associates/joint ventures) 2,673 2,845 Capital employed for calculating ROCE on a GAAP basis 86,661 105,134 Adjustments to exclude: - Leases (10,826) (9,672) - Deferred tax assets (19,033) (20,177) - Deferred tax liabilities 798 699 - Taxation recoverable (174) (76) - Taxation liabilities 578 393 - Other investments (2,660) (1,543) - Associates and joint ventures (6,796) (10,032) - Pension assets and liabilities (55) (76) - Removal of capital employed related to discontinued operations – (12,129) - Other adjustments 1 (1,193) (1,009) Adjusted capital employed for calculating pre-tax ROCE (controlled) 47,300 51,512 Associates and joint ventures 6,796 10,032 Adjusted capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 54,096 61,544 Average capital employed for calculating pre-tax ROCE (controlled) 53,146 53,831 Average capital employed for calculating post-tax ROCE (controlled and associates/joint ventures) 61,030 64,381 Pre-tax ROCE (controlled) 7.0% 7.2% Post-tax ROCE (controlled and associates/joint ventures) 4.4% 4.4% Notes: 1. Comprises adjustments to exclude hyperinflationary accounting in Türkiye. 2. Adjusted share of results of equity accounted associates and joint ventures used in post-tax ROCE is a non-GAAP measure and excludes restructuring costs and other income. 3. Includes tax at the Adjusted effective tax rate of 25.3% (FY24: 24.5%).
Non-GAAP measures - Unaudited information (continued) ROCE on a GAAP basis The table below presents the calculation of ROCE using GAAP measures as reported in the consolidated income statement and consolidated statement of financial position. FY25 FY24 €m €m Operating (loss)/profit 1 (411) 3,665
Borrowings
53,143
56,987 (6,183) (4,226)
Cash and cash equivalents
(11,001)
Derivative financial instruments included in trade and other receivables Derivative financial instruments included in trade and other payables
(4,197)
1,906
1,524
Non-current investments in sovereign securities
(913)
–
Short-term investments
(5,280) (1,010)
(3,225)
Collateral assets
(741)
Financial liabilities under put option arrangements
97
–
Equity
53,916
60,998
Capital employed at end of the year Average capital employed for the year
86,661 105,134 95,898 107,771
ROCE on a GAAP basis
(0.4)%
3.4%
Note: 1. Operating (loss)/profit includes Other income which includes merger and acquisition activity that is non-recurring in nature.
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