Unilever 2002 Annual Report Download - page 117

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114 Five year record
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
Consolidated cash flow statement (a) €million € million € million € million € million
2002 2001 2000 1999 1998
Cash flow from operating activities 7 883 7 497 6 738 5 654 4 514
Dividends from joint ventures 83 82 38 28 24
Returns on investments and servicing of finance (1 386) (1 887) (798) (156) 67
Taxation (1 817) (2 205) (1 734) (1 443) (1 261)
Capital expenditure and financial investment (1 706) (1 358) (1 061) (1 501) (1 399)
Acquisitions and disposals 1 755 3 477 (27 373) (362) 338
Dividends paid on ordinary share capital (1 580) (1 420) (1 365) (1 266) (1 073)
Special dividend –––(6 093) –
Cash flow before management of
liquid resources and financing 3 232 4 186 (25 555) (5 139) 1 210
Management of liquid resources (592) 1 106 2 464 5 675 (2 003)
Financing (2 591) (5 098) 22 902 (146) 42
Increase/(decrease) in cash in the period 49 194 (189) 390 (751)
Key ratios (g)(e) 2002 2001 2000 1999 1998
Return on shareholders’ equity (%) 31.7 23.8 12.8 44.7 25.1
Return on capital employed (%) 10.5 8.8 7.8 22.6 16.2
Group operating margin (%) 10.4 10.0 6.7 10.5 10.9
Net profit margin (%) 4.4 3.6 2.3 6.8 7.3
Net interest cover (times) 4.5 3.2 5.1 319.0 –
Net interest cover based on EBITDA before exceptional items (times) 7511412 –
Net gearing (adjusted) (%) 67 72 73 – –
Ratio of earnings to fixed charges (times) 3.5 2.7 3.2 8.1 9.7
Funds from operations after interest and tax before exceptional
items over lease adjusted net debt (%) 26 18 14 250 –
Selected financial data on a US GAAP basis (a)(h)(i) €million € million € million € million € million
2002 2001 2000 1999 1998
Net profit 4 309 1 506 1 266 2 490 2 543
Capital and reserves 11 699 13 553 15 075 15 375 19 292
Combined earnings per share (c)
Euros per 0.51 (1998: Fl. 1) of ordinary capital 4.36 1.48 1.24 2.36 2.27
Euro cents per 1.4p (1998: 1.25p) of ordinary capital 65.51 22.21 18.53 35.45 34.09
Diluted earnings per share
Euros per 0.51 (1998: Fl. 1) of ordinary capital 4.24 1.44 1.20 2.30 2.22
Euro cents per 1.4p (1998: 1.25p) of ordinary capital 63.56 21.61 18.07 34.57 33.25
Ratio of earnings to fixed charges (times) 4.7 2.5 3.2 7.6 8.4
Net gearing (%) 54.3 62.0 62.8 – –
Net interest cover (times) 6.1 3.1 5.0 178.4 –
Notes
(a) Amounts previously reported in guilders have been restated and are now reported in euros using the fixed conversion rate of
1.00 = Fl. 2.20371 that became effective on 1 January 1999.
(b) Interest cost in 2000 includes 37 million of exceptional interest (see note 5 on page 78).
(c) For the basis of the calculations of combined earnings per share see note 7 on page 79 and 80.
(d) In 1999 and prior years, NV dividends were declared and paid in guilders. For comparative purposes, guilder values have been
converted into euros in this table using the official rate of 1.00 = Fl. 2.20371. Full details of dividends for the years 1998 to 2002
are given on page 147.
(e) Amounts restated following the implementation of FRS 19, see note 18 on page 94.
(f) Figures for 1998 include the special dividend of 7 267 million assuming all shareholders had taken the cash dividend. Capital and
reserves in 1999 reflect the increase of 1 382 million as a result of the issue of the preference shares.
(g) Return on shareholders’ equity is substantially influenced by the Group’s policy prior to 1998, of writing off purchased goodwill in
the year of acquisition as a movement in profit retained. Return on capital employed and net gearing are also influenced but to a
lesser extent.
(h) During the year ended 31 December 2002, Unilever recognised for US GAAP reporting purposes SFAS 142 which ceased amortisation
of goodwill and indefinite-lived assets. Amortisation expense on goodwill and indefinite-lived intangible assets on a US GAAP basis for
the years ended 31 December 2001, 2000, 1999 and 1998 were 1 748 million, 810 million, 369 million and 356 million
respectively.
(i) During the year ended 31 December 2002, Unilever changed its method of calculating expected return on plan assets for US GAAP
purposes by adopting the actual fair market value at the balance sheet date rather than a market related value. Had this methodology
been applied in previous years, it would have resulted in an increase in net income for the years ended 31 December 2001, 2000, 1999
and 1998 of 86 million, 210 million, 57 million and 83 million respectively.