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Report of the Directors
Unilever Annual Report and Accounts 2005 19
Financial Review
Non-GAAP measures (continued)
Underlying sales growth
USG reflects the change in revenue at constant rates of exchange, excluding the effects of acquisitions and disposals. It is a measure that
provides valuable additional information on the underlying performance of the business. In particular, it presents the organic growth of our
business year on year and is used internally as a core measure of sales performance.
The reconciliation of USG to the GAAP measure turnover is as follows:
2005
vs 2004
Underlying sales growth (%) 3.1
Effect of acquisitions (%) 0.1
Effect of disposals (%) (1.6)
Effect of exchange rates (%) 1.3
Turnover growth (%) 2.9
Net debt
Net debt is defined as the excess of total borrowings, bank overdrafts, relevant derivatives and finance leases over, cash, cash equivalents
and financial assets, excluding amounts held for sale. It is a measure that provides valuable additional information on the summary
presentation of the Group’s net financial liabilities and is a measure in common use elsewhere.
The reconciliation of net debt to the GAAP measure total borrowings is as follows:
€ million € million € million € million
IAS 32/39
31 December 1 January and IFRS 5 31 December
2005 2005 adjustments 2004
Total borrowings (12 399) (13 669) (1 621) (12 048)
Borrowings due within one year (5 942) (6 448) (1 293) (5 155)
Borrowings due after one year (6 457) (7 221) (328) (6 893)
Cash and cash equivalents as per balance sheet 1 529 1 582 (8) 1 590
Cash and cash equivalents as per cash flow statement 1 265 1 406 – 1 406
Add bank overdrafts deducted therein 265 184 – 184
Less cash and cash equivalents in assets/liabilities held for sale (1) (8) (8) n/a
Other financial assets 335 533 (480) 1 013
Derivatives and finance leases included in other receivables and other liabilities 33 369 587 (218)
Net debt (10 502) (11 185) (1 522) (9 663)