Vodafone Group Plc Annual Report 2025 27
Strategic report
Governance
Financials
Other information
Our financial performance continued
Borrowings and cash position FY25 €m
Funding position
Other funding considerations include: FY25 €m
Acquisitions and disposals includes the disposal of 10% of Oak Holdings 1 GmbH (€1,336 million) and the disposal of 18% of Indus Towers Limited (€1,684 million). Additionally, the Group disposed of Vodafone Spain to Zegona Communications plc (‘Zegona’) for total cash consideration of €4,069 million (subject to closing accounts adjustments), of which €3,669 million is included in this line, and Vodafone Italy to Swisscom AG (‘Swisscom’) for total cash consideration of €7,885 million (after closing accounts adjustments), of which €7,707 million is included in this line. The remaining €400 million and €178 million respectively relates to the future use of the Vodafone brand by Zegona and Swisscom and to certain procurement services to be provided by the Group to Zegona. Adjusted free cash flow was an inflow of €2,548 million in the period, representing a decline of €52 million compared to the comparative period.
Reported change %
FY24 €m
Re-presented 1 FY24 €m
Reported change %
FY25 €m
FY24 €m
Lease liabilities Pension fund liabilities Guarantees over loan issued by Australia joint venture Equity characteristic of 50% attributed by credit rating agencies to ‘Hybrid bonds’ included in net debt, EUR swapped
(10,826) (9,672) (187) (181) (1,479) (1,479)
Bonds Bank loans
(36,402) (40,743) (1,213) (767) (2,345) (1,457) (39,960)(42,967) 11,001 6,183
Non-current borrowings (46,096) (49,259) Current borrowings (7,047) (7,728) Borrowings (53,143)(56,987) Cash and cash equivalents 11,001 6,183 Borrowings less cash and cash equivalents (42,142)(50,804) 17.0 Note: 1. On 1 April 2024, the Group adopted amendments to IAS 1 ‘Presentation of Financial Statements’ which has impacted the classification of certain bonds between current borrowings and non-current borrowings. See note 1 ‘Basis of preparation’ in the consolidated financial statements for more information. Borrowings principally includes bonds of €36,402 million (31 March 2024: €40,743 million), lease liabilities of €10,826 million (31 March 2024: €9,672 million), cash collateral liabilities of €2,357 million (31 March 2024: €2,628 million) and €nil (31 March 2024: €1,720 million) of bank borrowings that are secured against the Group’s shareholdings in Indus Towers and Vodafone Idea. The decrease in borrowings of €3,844 million was primarily driven by the repayment of the bank borrowings that are secured against the Group’s shareholdings in Indus Towers and Vodafone Idea assets of €1,794 million, repayment of bonds of €7,408 million and a net reduction in collateral liabilities of €271 million, partially offset by the issue of new bonds of €3,358 million, an increase in lease liabilities of €1,154 million and an increase in bank loans and other borrowings of €1,335 million.
Other borrowings including spectrum Gross debt 1 Cash and cash equivalents Non-current investments in sovereign securities
7.0
value of €8,162 million (€8,993 million as at 31 March 2024) 4,081 4,497 The Group’s borrowings, which mainly include certain bonds that have been designated in hedge relationships, are carried at €899 million (2024: €1,229 million) higher than their euro equivalent redemption value. In addition, where bonds are issued in currencies other than euros, the Group has entered into foreign currency swaps to fix the euro cash outflows on redemption. The impact of these swaps is not reflected in gross debt and would decrease the euro equivalent redemption value of the bonds by €1,132 million (2024: €1,559 million).
913 – Short-term investments 2 5,280 3,225 Derivative financial instruments 3 1,716 2,204 Net collateral liabilities 4 (1,347) (1,887) Net debt 1 Notes: 1. Gross debt and Net debt are non-GAAP measures. See page 213 for more information. 2. Short-term investments include €2,139 million (31 March 2024: €1,201 million) of highly liquid government and government- backed securities and managed investment funds of €3,141 million (31 March 2024: €2,024 million) that are in highly rated and liquid money market investments with liquidity of up to 90 days. 3. Derivative financial instruments exclude derivative movements in cash flow hedging reserves of €574 million gain (31 March 2024: €498 million gain). (22,397)(33,242) 32.6 4. Collateral arrangements on derivative financial instruments result in cash being held as security. This is repayable when derivatives are settled and is therefore deducted from liquidity. Net debt decreased by €10,845 million to €22,397 million. This was driven by cash proceeds from acquisitions and disposals (€13,917 million) and a free cash inflow of €1,850 million, partially offset by equity dividends of €1,787 million, share buybacks of €1,868 million and €1,794 million in relation to the repayment of borrowings secured against Indian assets.
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