Unilever 2013 Annual Report Download - page 33

BALANE SHEET
Unilever NV’s and Unilever PLC’s combined market capitalisation
rose from €81.9 billion at the end of 2012 to €83.8 billion at 31
December 2013. The full year dividend for 2013 rose 10% to €1.05.
A final dividend of €0.2690 per NV ordinary share and £0.2222 per
PLC ordinary share was declared on 21 January 2014. Information
on dividends is set out in note 8 on page 109.
 mllon
2013
€ million
2012
(Restated)(1)
Goodwill and intangible assets 20,904 21,718
Other non-current assets 12,487 12,324
Current assets 12,122 12,147
Total assets 45,513 46,189
Current liabilities 17,382 15,815
Non-current liabilities 13,316 14,425
Total labltes 30,698 30,240
Shareholders’ equity 14,344 15,392
Non-controlling interest 471 557
Total equity 14,815 15,949
Total labltes and equty 45,513 46,189
(1) Refer to page 31.
Goodwill and intangible assets reduced by €0.8 billion mainly due
to business disposals and currency movements. All material
goodwill and indefinite-life intangible assets have been tested for
impairment. No impairments were identified.
During 2013 the Group sold its global Skippy business to Hormel
Foods for a total cash consideration of approximately US $700
million. It also sold its Wish-Bone and Western dressings brands
to Pinnacle Foods Inc. for approximately US $580 million.
In July 2013 Unilever paid INR 192 billion (€2,515 million) for
319,563,398 shares in Hindustan Unilever Limited (representing
14.78% of the total shareholding), increasing the Group ownership
to 67%. Accordingly, €104 million previously shown as attributable
to non-controlling interests within equity is now attributable to
shareholders and the resulting loss on the acquisition
recorded in retained earnings is €2,411 million.
Current assets were flat versus 2012, with good progress in
reducing inventory levels being offset by higher trade and other
receivables.
During 2013 Unilever recognised provisions of €120 million in
relation to investigations by national competition authorities.
Current liabilities were €1.6 billion higher mainly driven by the
impact of a €2.5 billion cash outflow to increase the Group’s
interest in Hindustan Unilever Limited. Non-current liabilities
(excluding pensions) were broadly in line with the previous year.
The net movements in assets and liabilities for all pension
arrangements during the year was as follows:
 mllon
2013
1 January (3,342)
Current service cost (301)
Employee contributions 18
Special termination benefits (18)
Past service costs 53
Settlements/curtailments 36
Actual return on plan assets (excluding amounts in interest) 934
Net interest cost (133)
Actuarial gain/(loss) 8
Employer contributions 593
Reclassification of benefits –
Currency retranslation 175
31 December (1,977)
The overall net liability for all pension arrangements was €2.0
billion at the end of 2013, down from €3.3 billion at the end of 2012.
€1.0 billion of this relates to funded schemes in surplus (2012: €0.8
billion). The decrease in the net obligation reflects the impact of
investment returns, in excess of the interest cost on liabilities, and
cash contributions. Cash expenditure on pensions was €0.7 billion,
the same as in the prior year and as forecast for 2014.
FINANE AND LIQUIDITY
The Group’s financial strategy provides the financial flexibility to
meet strategic and day-to-day needs. Our current long-term
credit rating is A+/A1 and our current short-term credit rating is
A1/P1. We aim to maintain a competitive balance sheet which we
consider to be the equivalent of a credit rating of A+/A1. We believe
this provides us with:
• appropriate access to equity and debt markets;
• sufficient flexibility for acquisitions;
• sufficient resilience against economic and financial
uncertainty ensuring ample liquidity; and
• optimal weighted average cost of capital, given the above
constraints.
Unilever aims to concentrate cash in the parent and central
finance companies in order to ensure maximum flexibility in
meeting changing business needs. Operating subsidiaries are
financed through the mixture of retained earnings, third-party
borrowings and loans from parent and central finance companies.
Unilever maintains access to global debt markets through an
infrastructure of short-term debt programmes (principally US
domestic and euro commercial paper programmes) and long-
term debt programmes (principally a US Shelf Registration
programme and a European markets Debt Issuance Programme).
Debt in the international markets is, in general, issued in the
name of NV, PLC, Unilever Finance International BV or Unilever
Capital Corporation. NV, PLC and Unilever United States Inc. will
normally guarantee such debt where they are not the issuer.
Approximately €1.3 billion (or 59%) of the Unilever Group’s cash and
cash equivalents balances are held in foreign subsidiaries. We
generally repatriate distributable reserves from our subsidiaries
on a regular basis. In the majority of countries we are able to
repatriate funds to Unilever N.V. and Unilever PLC through
dividends free of tax. In a few countries we face cross-border
foreign exchange controls and/or other legal restrictions that
prevent balances being available in any means for general use by
the parent companies or subsidiaries. In each of the last three
years the amount of cash held in these countries was less than
€250 million.
30 Unlever Annual Report and Accounts 2013Strategc report
FINANCIAL REVIEW 2013
CONTINUED