Unilever 2006 Annual Report Download - page 29

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26 Unilever Annual Report and Accounts 2006
Report of the Directors (continued)
Financial review (continued)
€million €million € million
Ungeared free cash flow 2006 2005 2004
Net profit 5015 3975 2 941
Taxation 1332 1301 836
Share of net profit of joint ventures/associates and other income from non-current investments (144) (55) (95)
Net finance costs 725 618 631
Depreciation, amortisation and impairment 982 1274 2 063
Changes in working capital 87 193 547
Pensions charges in operating profit less payments (1 038) (532) (472)
Movements in provisions less payments 107 (230) 574
Elimination of profits on disposals (1 620) (789) (308)
Non-cash charge for share-based compensation 120 192 218
Other adjustments 8(23) (10)
Cash flow from operating activities 5574 5924 6 925
Less charge for share-based compensation (120) (192) (218)
Add back pension payments less pension charges in operating profit 1038 532 472
Less net capital expenditure (934) (813) (869)
Less tax charge adjusted to reflect an ungeared position (1 336) (1 440) (964)
Taxation on profit (1 332) (1 301) (836)
Taxation on profit on sales of frozen foods businesses 159 ––
Tax relief on net finance costs (163) (139) (128)
Ungeared free cash flow 4222 4011 5 346
€million €million € million
Return on invested capital 2006 2005 2004
Net profit 5015 3975 2 941
Add back net interest expense net of tax 365 424 431
Add back impairment charges net of tax(a) 15 245 536
Profit after tax, before interest and impairment of goodwill and indefinite-lived intangible assets 5 395 4644 3908
Year-end positions for invested capital:
Property, plant and equipment and other non-current investments 7142 7333 6 966
Software and finite-lived intangible assets 608 642 623
Inventories 3796 4107 3 756
Trade and other receivables 4667 5 185 4410
Trade payables and other creditors due within one year (8 513) (8 782) (8 232)
Elements of invested capital included in assets and liabilities held for sale 15 200 –
Goodwill and indefinite-lived intangible assets at gross book value 20 705 21 621 19 854
Total 28 420 30 306 27 377
Add back cumulative goodwill written off directly to reserves 6427 6870 7 246
Year-end invested capital 34 847 37 176 34 623
Average invested capital for the year 36 850 37 012 36 444
Returnon average invested capital 14.6% 12.5% 10.7%
(a) Excluding write-downs of goodwill and indefinite-lived intangible assets taken in connection with business disposals.