Unilever 1999 Annual Report Download - page 52

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Five year record
Unilever Group
Consolidated cash flow statement
(a)
Fl. million
1995 1996 1997 1998 1999
Cash flow from operating activities 8 182 9 983 12 249 9 948 12 460
Returns on investments and servicing of finance (756) (687) (750) 201 (283)
Taxation (1 669) (1 877) (4 157) (2 779) (3 180)
Capital expenditure and financial investment (2 953) (2 819) (2 774) (3 083) (3 307)
Acquisitions and disposals (1 581) (2 275) 13 749 744 (799)
Dividends paid on ordinary share capital (1 533) (1 786) (2 062) (2 365) (2 791)
Special dividend (13 427)
Cash flow before management
of liquid resources and financing (310) 539 16 255 2 666 (11 327)
Management of liquid resources 651 (766) (14 122) (4 413) 12 509
Financing (195) 770 (1 517) 92 (322)
Increase/(decrease) in cash in the period 146 543 616 (1 655) 860
Key ratios
(b)
Return on shareholders’ equity (%) 26.4 29.4 49.8 24.6 42.3
Return on capital employed (%) 14.2 15.2 28.5 16.0 22.3
Operating margin (%) 8.0 8.6 8.0 10.9 10.5
Net profit margin (%)
(c)
4.7 4.8 11.6 7.3 6.8
Net interest cover (times) 10.1 11.6 68.0 — 319.0
Net gearing (%) 24.0 23.5 — — —
Sterling/guilder exchange rates
Annual average £1=Fl. 2.53 2.62 3.18 3.29 3.35
Year-end £1=Fl. 2.49 2.96 3.34 3.12 3.55
(a) The cash flow statement and the associated notes are presented in accordance with United Kingdom Financial Reporting
Standard 1. Figures for years prior to 1996 have been restated on the same basis.
(b) Return on shareholders’ equity is net profit attributable to ordinary shareholders expressed as a percentage of the average capital
and reserves attributable to ordinary shareholders during the year.
Return on capital employed is the sum of profit on ordinary activities after taxation plus interest after taxation on borrowings due
after more than one year, expressed as a percentage of the average capital employed during the year.
Operating margin is operating profit expressed as a percentage of turnover.
Net profit margin is net profit expressed as a percentage of turnover.
Net interest cover is profit on ordinary activities before net interest and taxation divided by net interest.
Net gearing is net debt (borrowings less cash and current investments) expressed as a percentage of the sum of capital
and reserves, minority interests and net debt.
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.
(c) Net profit margin includes the profit on sale of the speciality chemicals businesses in 1997.
52 Additional Financial Information