Unilever 2004 Annual Report Download - page 154

Unilever Annual Report and Accounts 2004 151
Five-year record (continued)
Unilever Group
Consolidated cash flow statement € million € million € million € million € million
2004 2003 2002 2001 2000
Cash flow from operating activities 6 853 6 780 7 883 7 497 6 738
Dividends from joint ventures 60 52 83 82 38
Returns on investments and servicing of finance (807) (1 180) (1 386) (1 887) (798)
Taxation (1 378) (1 423) (1 817) (2 205) (1 734)
Capital expenditure and financial investment (1 044) (1 024) (1 706) (1 358) (1 061)
Acquisitions and disposals 316 622 1 755 3 477 (27 373)
Dividends paid on ordinary share capital (1 720) (1 715) (1 580) (1 420) (1 365)
Cash flow before management of liquid resources and financing 2 280 2 112 3 232 4 186 (25 555)
Management of liquid resources (31) (41) (592) 1 106 2 464
Financing (2 921) (2 917) (3 078) (5 172) 22 889
Increase/(decrease) in cash in the period (672) (846) (438) 120 (202)
Key ratios 2004 2003 2002 2001 2000
Return on invested capital (%) 10.8 12.5 9.8 8.7 6.2
Net profit margin (%) 4.7 6.5 4.4 3.3 2.2
Net interest cover (times) 5.9 6.7 4.5 3.1 5.0
Adjustment for depreciation, amortisation and impairment (5.3) (2.8) (2.5) (1.8) (3.2)
Adjusted net interest cover based on adjusted EBITDA (times) 11.2 9.5 7.0 4.9 8.2
Ratio of earnings to fixed charges (times) 4.3 4.6 3.6 2.6 3.1
Funds from operations after interest and tax over lease-adjusted net debt (%)(d)(e) 42 32 26 16 15
Adjustment for leases (%) (9) (5) (4) (2) (2)
Funds from operations after interest and tax over net debt (%) 51 37 30 18 17
Selected financial data and key ratios on a US GAAP basis(f)(g) € million € million € million € million € million
2004 2003 2002 2001 2000
Group turnover 39 108 41 455 46 933 50 235 46 345
Net profit 2 686 3 807 4 210 1 446 1 215
Capital and reserves 14 012 13 349 11 772 13 553 15 075
Total assets 41 625 44 145 48 146 56 546 63 818
Combined earnings per share(b)
Euros per €0.51 of ordinary capital 2.76 3.90 4.27 1.42 1.18
Euro cents per 1.4p of ordinary capital 41.39 58.52 64.01 21.29 17.76
Diluted earnings per share
Euros per €0.51 of ordinary capital 2.65 3.79 4.14 1.38 1.15
Euro cents per 1.4p of ordinary capital 39.70 56.81 62.11 20.72 17.32
Return on invested capital 10.5 11.4 11.3 8.6 6.7
Net profit margin (%) 6.9 9.2 9.0 2.9 2.6
Net interest cover (times) 6.8 7.4 6.2 2.8 4.7
Adjustment for depreciation and amortisation (3.9) (1.3) (1.2) (1.9) (3.1)
Net interest cover based on EBITDA (times) 10.7 8.7 7.4 4.7 7.8
Ratio of earnings to fixed charges (times) 5.0 5.2 4.8 2.4 3.0
(a) Interest cost in 2000 includes €37 million of exceptional interest.
(b) For the basis of the calculations of combined earnings per share see note 7 on page 112.
(c) At 31 December 2000, capital and reserves, restated for the pensions changes described on page 150, would have been €11 211 million.
(d) Lease-adjusted net debt includes five times operating lease costs to reflect fully the various financing options adopted.
(e) In the calculation for 2001, taxation is reduced by €430 million relating to tax paid on a disposal in the US.
(f) During the year ended 31 December 2002, Unilever recognised for US GAAP reporting purposes SFAS 142 which ceased amortisation of
goodwill and indefinite-lived intangible assets. Amortisation expense on goodwill and indefinite-lived intangible assets on a US GAAP basis
for the years ended 31 December 2001 and 2000 were €1 748 million and €810 million respectively.
(g) 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 and 2000 of
€86 million and €210 million respectively.