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Notes to the consolidated accounts Unilever Group
124 Unilever Annual Report and Accounts 2008
Financial statements
24 Retained profit(a)
€ million € million € million € million € million € million € million € million € million
NV NV NV PLC PLC PLC Total Total Total
Movements during the year 2008 2007 2006 2008 2007 2006 2008 2007 2006
1 January 10 403 8 404 8 721 4 759 4 320 1 294 15 162 12 724 10 015
Recognised income and expense through
retained profit 1 742 2 599 3 727 950 1 829 1 848 2 692 4 428 5 575
Dividends on ordinary capital (1 176) (1 167) (1 529) (876) (903) (1 155) (2 052) (2 070) (2 684)
Utilisation of treasury stock (66) (53) (217) (47) (46) (68) (113) (99) (285)
Share-based compensation credit(b) 79 90 70 46 50 41 125 140 111
Adjustment arising from change in structure
of group companies(c) 4 346 499 (2 368) (4 346) (499) 2 368 –––
Other movements in retained profit 15 31 – (17) 8 (8) (2) 39 (8)
31 December 15 343 10 403 8 404 469 4 759 4 320 15 812 15 162 12 724
Of which retained by:
Parent companies 10 602 10 009 9 755 1 996 2 344 2 306 12 598 12 353 12 061
Other group companies 4 732 345 (1 294) (1 348) 2 555 2 006 3 384 2 900 712
Joint ventures and associates 949 (57) (179) (140) 8 (170) (91) (49)
15 343 10 403 8 404 469 4 759 4 320 15 812 15 162 12 724
(a) The movements in retained profit are analysed between the NV and PLC parts of the Group, aggregated according to the relative legal
ownership of individual entities by NV or PLC.
(b) The share-based compensation credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair
value of share options and awards granted to employees.
(c) As part of the review of Unilever's corporate structure, and in the light of the constitutional and operational arrangements which enable
Unilever N.V. and Unilever PLC to operate as nearly as practicable as a single company, the Directors have been authorised to take any
action necessary or desirable in order to ensure that the ratio of the dividend generating capacity of PLC to that of NV does not differ
substantially from the ratio of the dividend entitlement of ordinary shareholders in PLC to that of ordinary shareholders in NV. During 2007,
Unilever’s shareholding in Unilever Jerónimo Martins in Portugal was transferred from NV to PLC for no consideration. In addition, a part
of indirect shareholdings in Unilever US was sold by NV to PLC and the fair value economic swap in South Africa led to further adjustments
between NV and PLC. In 2006, shareholdings in the Unilever companies in Czech Republic, Hungary, Russia and Turkey, as well as a part
of indirect shareholdings in Unilever US, were transferred from NV to PLC for no consideration. In addition, part of a dividend which would
otherwise be due from a Unilever US intermediate company to a company within the NV part of the Group was instead paid to a company
within the PLC part of the Group. In 2008 shareholdings in the Unilever companies in Belgium, Austria, Netherlands, Poland and
Switzerland were transferred to 100% NV ownership. In addition, shareholdings in Canada and Indonesia were re-aligned between NV and
PLC. Reorganisations of group companies have produced similar types of adjustments in previous years.
Cumulative goodwill written off directly to reserves prior to the transition to IFRS on 1 January 2004 was €5 199 million for NV and
€2 063 million for PLC.