Report & accounts 2002 in full - Unilever

Definitions
Unilever Annual Report & Accounts and Form 20-F 2002
Five year record 115
Unilever Group
Return on shareholders’ equity Net profit attributable to ordinary shareholders expressed as a percentage of the
average capital and reserves attributable to ordinary shareholders during the year.
Return on capital employed The sum of profit on ordinary activities after taxation plus interest after taxation on
borrowings due after more than one year, expressed as a percentage of the average
capital employed during the year.
Group operating margin Group operating profit expressed as a percentage of group turnover.
Operating margin Operating profit expressed as a percentage of turnover.
Net profit margin Net profit expressed as a percentage of group turnover.
Net interest cover Profit on ordinary activities excluding associates before net interest and taxation divided
by net interest excluding associates.
Net interest cover based on EBITDA Earnings on ordinary activities excluding associates before net interest, taxation,
(before exceptional items) depreciation and amortisation and exceptional items divided by net interest
excluding associates.
Net gearing (adjusted) Net debt (borrowings less cash and current investments) expressed as a percentage of
the sum of capital and reserves, minority interests and net debt. In calculating capital
and reserves, the book value of shares or certificates held in connection with share
option plans is classified as fixed assets, rather than deducted from reserves as required
by Netherlands law.
Net operating assets The total of:
• goodwill and intangible assets of subsidiaries purchased after 1 January 1998
• tangible fixed assets
• stocks
• debtors (excluding deferred taxation)
less:
• trade and other creditors (excluding taxation and dividend creditors)
• provisions for liabilities and charges (excluding deferred taxation and deferred
purchase consideration).
Ratio of earnings to fixed charges Earnings consist of net profit excluding joint ventures and associates increased
by fixed charges and income taxes. Fixed charges consist of interest payable on debt
and a portion of lease costs determined to be representative of interest. This ratio takes
no account of interest receivable although Unilever’s treasury operations involve both
borrowing and depositing funds.
Funds from operations after interest and tax Profit on ordinary activities excluding joint ventures and associates before depreciation
(before exceptional items) over lease adjusted and amortisation of goodwill and intangibles and exceptional items, and after actual
net debt tax paid and other non exceptional non cash items, expressed as a percentage of the
lease adjusted net debt. Lease adjusted net debt is calculated by adding to the net
debt five times the operational lease costs.
Weighted average cost of capital The real cost of equity multiplied by the market capitalisation, plus the real after
taxation interest cost of debt multiplied by the market value of the net debt, divided
by the sum of the market values of debt and equity.
Financial Statements