Unilever 2008 Annual Report Download - page 135

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Notes to the consolidated accounts Unilever Group
132 Unilever Annual Report and Accounts 2008
Financial statements
28 Reconciliation of net profit to cash flow from operating activities
€ million € million € million
Cash flow from operating activities 2008 2007 2006
Net profit 5 285 4 136 5 015
Taxation 1 844 1 137 1 332
Share of net profit of joint ventures/associates and other income from non-current investments (219) (191) (144)
Net finance costs: 257 252 725
Finance income (106) (147) (138)
Finance cost 506 550 602
Preference shares provision – 7 300
Pensions and similar obligations (143) (158) (39)
Operating profit (continuing and discontinued operations) 7 167 5 334 6 928
Depreciation, amortisation and impairment 1 003 943 982
Changes in working capital: (161) 27 87
Inventories (345) (333) (156)
Trade and other current receivables (248) (43) (172)
Trade payables and other current liabilities 432 403 415
Pensions and similar provisions less payments (502) (910) (1 038)
Provisions less payments (62) 145 107
Elimination of (profits)/losses on disposals (2 259) (459) (1 620)
Non-cash charge for share-based compensation 125 118 120
Other adjustments 15 (10) 8
Cash flow from operating activities 5 326 5 188 5 574
The cash flows of pension funds (other than contributions and other direct payments made by the Group in respect of pensions and similar
obligations) are not included in the Group cash flow statement.
Major non-cash transactions
During 2007 the Group entered into new finance lease arrangements in respect of equipment with a capital value at inception of the lease of
€51 million (2006: €51 million). In addition, a lease for €181 million related to the sale and leaseback transaction carried out for the head office
building in UK was signed during 2007.
During 2006 the Group took a provision of €300 million for possible compensation payments relating to the 2005 conversion of
preference shares, issued by Unilever N.V. in 1999. See note 25 on page 127 for further details.