Unilever 2015 Annual Report Download - page 41

FINANE AND LIQUIDITY
We concentrate cash n the parent and central fnance companes
for maxmum flexblty These companes provde loans to our
subsdares that are also funded through retaned earnngs and
thrd party borrowngs We mantan access to global debt markets
through an nfrastructure of short and long-term debt
programmes We make use of plan vanlla dervatves, such as
nterest rate swaps and foregn exchange contracts, to help
mtgate rsks More detal s provded on pages 120 to 125 of our
overnance and Fnancal Report
Approxmately 18 bllon (or 79%) of the roup’s cash and cash
equvalents are held n foregn subsdares whch repatrate
dstrbutable reserves on a regular bass For most countres
ths s done through dvdends free of tax In a few countres we
face cross-border foregn exchange controls and/or other legal
restrctons that nhbt our ablty to make these balances
avalable n any means for general use by the wder busness
The amount of cash held n these countres was 284 mllon
(2014 452 mllon, 2013 243 mllon) The cash wll generally
be nvested or held n the relevant country and, gven the other
captal resources avalable to the roup, does not sgnfcantly
affect the ablty of the roup to meet ts cash oblgatons
We closely montor all our exposures and counter-party lmts
Unlever has commtted credt facltes n place for general
corporate purposes The undrawn blateral commtted credt
facltes n place on 31 December 2015 were US$6,550 mllon
ONTRATUAL OBLIATIONS AT 31 DEEMBER 2015
 mllon Total
Due
wthn
1 year
Due n
1-3
years
Due n
3-5
years
Due n
over
5 years
Total contractual
oblgatons(a) 21,041 6,037 4,567 3,798 6,639
(a) Included wthn total contractual oblgatons are long-term debt, nterest
on fnancal labltes, operatng lease oblgatons, purchase oblgatons
for raw and packng materals and fnshed goods, fnance leases and other
long-term oblgatons (not ncludng pensons)
Further detals are set out n the overnance and Fnancal Report
n the followng notes to the consoldated fnancal statements
note 10 on pages 111 and 112, note 15 on page 119, and note 20
on pages 130 and 131 Unlever s satsfed that ts fnancng
arrangements are adequate to meet ts workng captal needs for
the foreseeable future In relaton to the facltes avalable to the
roup, borrowng requrements do not fluctuate materally durng
the year and are not seasonal
AUDIT FEES
Included wthn operatng proft s 15 mllon (2014 14 mllon)
pad to the external audtor, of whch 14 mllon (2014 14 mllon)
related to statutory audt servces
NONAAP MEASURES
ertan dscussons and analyses set out n ths Annual Report and
Accounts nclude measures whch are not defned by generally
accepted accountng prncples (AAP) such as IFRS We beleve
ths nformaton, along wth comparable AAP measurements, s
useful to nvestors because t provdes a bass for measurng our
operatng performance, ablty to retre debt and nvest n new
busness opportuntes Our management uses these fnancal
measures, along wth the most drectly comparable AAP
fnancal measures, n evaluatng our operatng performance and
value creaton Non-AAP fnancal measures should not be
consdered n solaton from, or as a substtute for, fnancal
nformaton presented n complance wth AAP Non-AAP
fnancal measures as reported by us may not be comparable
wth smlarly ttled amounts reported by other companes
In the followng sectons we set out our defntons of the followng
non-AAP measures and provde reconclatons to relevant AAP
measures
• underlyng sales growth
• underlyng volume growth
• core operatng proft and core operatng margn
• core earnngs per share (core EPS)
• free cash flow and
• net debt
UNDERLYIN SALES ROWTH (US)
Underlyng sales growth (US) refers to the ncrease n turnover
for the perod, excludng any change n turnover resultng from
acqustons, dsposals and changes n currency The mpact of
acqustons and dsposals s excluded from US for a perod of
12 calendar months from the applcable closng date Turnover
from acqured brands that are launched n countres where they
were not prevously sold s ncluded n US as such turnover s
more attrbutable to our exstng sales and dstrbuton network
than the acquston tself
The reconclaton of US to changes n the AAP measure
turnover s as follows
TOTAL ROUP 2015
vs 2014
2014
vs 2013
Underlyng sales growth (%) 41 29
Effect of acqustons (%) 07 04
Effect of dsposals (%) (08) (13)
Effect of exchange rates (%) 59 (46)
Turnover growth (%)(a) 100 (27)
PERSONAL ARE 2015
vs 2014
2014
vs 2013
Underlyng sales growth (%) 41 35
Effect of acqustons (%) 10 –
Effect of dsposals (%) –(01)
Effect of exchange rates (%) 76 (50)
Turnover growth (%)(a) 132 (18)
FOODS 2015
vs 2014
2014
vs 2013
Underlyng sales growth (%) 15 (06)
Effect of acqustons (%) ––
Effect of dsposals (%) (25) (36)
Effect of exchange rates (%) 56 (39)
Turnover growth (%)(a) 45 (79)
HOME ARE 2015
vs 2014
2014
vs 2013
Underlyng sales growth (%) 59 58
Effect of acqustons (%) 02 18
Effect of dsposals (%) (01) –
Effect of exchange rates (%) 45 (48)
Turnover growth (%)(a) 109 24
38 Unilever Annual Report and Accounts 2015Strategic Report
FINANIAL REVIEW 2015
ONTINUED