EX-7 7 a17-12473_1ex7.htm EX-7

Exhibit 7

 

UNAUDITED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)

 

 

 

2017

 

Restated
2016

 

Restated
2015

 

Restated
2014

 

Restated
2013

 

 

 

€m

 

€m

 

€m

 

€m

 

€m

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing costs per consolidated income statement(2)

 

1,406

 

2,046

 

1,399

 

1,418

 

1,423

 

Financing costs — discontinued operations

 

—

 

—

 

—

 

—

 

—

 

One third of rental expense

 

1,358

 

821

 

792

 

764

 

892

 

Interest capitalized

 

—

 

1

 

3

 

3

 

6

 

Fixed charges

 

2,764

 

2,868

 

2,194

 

2,185

 

2,321

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss/(profit) before taxation from continuing operations

 

2,792

 

(190

)

1,734

 

(5,960

)

(3,913

)

Share of results of equity accounted associates and joint ventures

 

(47

)

(60

)

78

 

(327

)

(708

)

Fixed charges

 

2,764

 

2,868

 

2,194

 

2,185

 

2,321

 

Dividends received from associates and joint ventures

 

433

 

92

 

732

 

5,805

 

6,806

 

Interest capitalized

 

—

 

(1

)

(3

)

(3

)

(6

)

Earnings

 

5,942

 

2,709

 

4,735

 

1,700

 

4,500

 

Ratio of earnings to fixed charges

 

2.1

 

—

 

2.2

 

—

 

1.9

 

Deficiency between fixed charges and earnings

 

—

 

159

 

—

 

485

 

—

 

 

Notes:

(1)         All of the financial information presented in this exhibit is unaudited. With effect from 1 April 2016, the Group’s presentation currency was changed from pounds sterling to the euro to better align with the geographic split of the Group’s operations. The results for the year ended 31 March 2016, 2015, 2014 and 2013 have been restated into euros and include the results of Vodafone India as discontinued operations following the agreement to combine with Idea Cellular.

(2)         Fixed charges include (1) interest expensed (2) interest capitalized (3) amortisation of premiums, discounts and capitalised expenses related to indebtedness, and (4) an estimate of the interest within rental expense. These include the financing costs of subsidiaries.  Fixed charges include net foreign exchange gains arising from net foreign exchange movements on certain intercompany loans of €28 million for the year ended 31 March 2017 (2016: €573 million loss, 2015: €614 million gain, 2014: €25 million gain, 2013: €112 million loss), interest charge on settlement of tax issues of €47 million for the year ended 31 March 2017 (2016: €19 million charge, 2015: €1 million credit, 2014: €18 million credit, 2013: €112 million credit) and equity put rights and similar arrangements of €nil for the year ended 31 March 2017 (2016: €nil, 2015: €12 million, 2014: €170 million, 2013: €167 million).