Vodafone Group Plc Annual Report 2025 221
Strategic report
Governance
Financials
Other information
- Non GAAP measures Unaudited information (continued) Financing and Taxation metrics Non-GAAP measure Purpose Definition Adjusted net financing costs -
Non-GAAP measure Purpose
Definition
Adjusted share of results of equity accounted
This metric is used in the calculation of post-tax ROCE
Share of results of equity accounted associates and joint ventures excluding restructuring costs
(controlled and associates/joint and other income and expense.
associates and joint ventures). ventures used in post-tax ROCE Adjusted tax metrics The table below reconciles Profit before taxation and Income tax expense to Adjusted profit before taxation, Adjusted income tax expense and Adjusted effective tax rate. FY25 FY24 €m €m (Loss)/profit before taxation (1,478) 1,620 Adjustments to derive Adjusted profit before tax 4,747 1,466 Adjusted profit before taxation 3,269 3,086 Adjusted share of results of equity accounted associates and joint ventures (153) (227) Adjusted profit before tax for calculating Adjusted effective tax rate 3,116 2,859 Income tax expense (2,246) (50) Tax on adjustments to derive Adjusted profit before tax 8 (342) Adjustments: - Deferred tax on use of Luxembourg losses in the year 423 598 - UK corporate interest restriction 16 78 - Tax relating to inflation-related adjustments in T ü rkiye 146 35 - Deferred tax on rate change in Luxembourg 718 – - Settlement of the VISPL tax cases 185 – -Other (38) – - Deferred tax on recognition of Luxembourg losses in the year – (1,019) Adjusted income tax expense for calculating Adjusted tax rate (788) (700) Adjusted effective tax rate 25.3% 24.5%
This metric is used by both management and the investor community. This metric is used in the calculation of Adjusted basic earnings per share. This metric is used in the calculation of the Adjusted effective tax rate (see below).
Adjusted net financing costs exclude mark-to- market and foreign exchange gains/losses, together with fair value movements on Other investments through profit and loss. Adjusted profit before taxation excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss. Adjusted income tax expense excludes the tax effects of items excluded from Adjusted basic earnings per share, including: impairment losses/reversals, amortisation of customer bases and brand intangible assets, restructuring costs arising from discrete restructuring plans, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss. It also excludes deferred tax movements relating to tax losses in Luxembourg as well as other significant one-off items. Adjusted income tax expense (see above) divided by Adjusted profit before taxation (see
Adjusted profit before taxation
Adjusted income tax This metric is used in the expense calculation of the Adjusted effective tax rate (see below).
Adjusted effective
This metric is used by both management and the investor
tax rate
community.
above).
Adjusted share of results of equity accounted associates and joint
This metric is used in the Share of results of equity accounted associates calculation of Adjusted effective and joint ventures excluding restructuring costs,
tax rate.
amortisation of acquired customer base and brand intangible assets and other income and
ventures
expense.
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