Unilever 2004 Annual Report Download - page 6

Unilever Annual Report and Accounts 2004 03
General information
(continued)
In our reporting, Turnover comprises Group turnover plus the
Group share of turnover of joint ventures, net of the Group share
of any sales to the joint ventures already included in the Group
figures, but does not include our share of the turnover of
associates. Operating profit comprises Group operating profit
plus our share of operating profit of joint ventures. This measure
does not include our share of the operating profit of associates.
References to turnover growth include the effects of acquisitions
and disposals. Underlying sales growth reflects the change in
revenue at constant rates of exchange excluding the effects of
acquisitions and disposals. We believe this measure provides
valuable additional information on the underlying performance
of the business.
Leading brand growth is a subset of underlying sales growth
and measures the change in revenue arising from our leading
brands. Leading brand growth has been a key metric used to
measure the progress of the Path to Growth programme.
Return on invested capital is profit after tax but excluding
net interest on net debt and amortisation or impairment of
goodwill and intangible assets both net of tax, divided by average
invested capital for the year. Invested capital is the sum of
tangible fixed assets and fixed investments, working capital,
goodwill and intangible assets at gross book value and cumulative
goodwill written off directly to reserves under an earlier
accounting policy.
Ungeared free cash flow is defined as cash flow from group
operating activities, less capital expenditure and financial
investment and less a tax charge adjusted to reflect an
ungeared position. It is not a measure of liquidity.
Ungeared free cash flow generation and return on invested
capital are key measures of value creation, used to monitor
progress towards our long-term strategic objectives.
Tables reconciling certain of these measures to the statutory
measures included in the Financial Statements are shown on
pages 4 to 6 and throughout the section entitled ‘Operating
review’ on pages 24 to 49.
€is used in this report to denote amounts in euros.
£and pare used in this report to denote amounts in pounds
sterling and pence respectively.
Fl. is used in this report to denote amounts in Dutch guilders.
$is used in this report to denote amounts in United States
dollars, except where specifically stated otherwise.
The brand names shown in italics in this report are trademarks
owned by or licensed to companies within the Unilever Group.
Cautionary statement
This document may contain forward-looking statements, including
‘forward-looking statements’ within the meaning of the United
States Private Securities Litigation Reform Act of 1995. Words
such as ‘expects’, ‘anticipates’, ‘intends’ or the negative of these
terms and other similar expressions of future performance or
results and their negatives are intended to identify such forward-
looking statements. These forward-looking statements are based
upon current expectations and assumptions regarding anticipated
developments and other factors affecting the Group. They are not
historical facts, nor are they guarantees of future performance.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements, including, among others,
competitive pricing and activities, consumption levels, costs, the
ability to maintain and manage key customer relationships and
supply chain sources, currency values, interest rates, the ability to
integrate acquisitions and complete planned divestitures, physical
risks, environmental risks, the ability to manage regulatory, tax
and legal matters and resolve pending matters within current
estimates, legislative, fiscal and regulatory developments, political,
economic and social conditions in the geographic markets where
the Group operates and new or changed priorities of the Boards.
Further details of potential risks and uncertainties affecting the
Group are described in the Group’s filings with the London Stock
Exchange, Euronext Amsterdam and the US Securities and
Exchange Commission, including the Annual Report and Accounts
on Form 20-F. These forward-looking statements speak only as of
the date of this document. Except as required by any applicable
law or regulation, the Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any
change in the Group’s expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.