Report & accounts 2002 in full - Unilever

6 Taxation on profit on ordinary activities continued
The total charge in future periods will be affected by any changes
to the corporate tax rates in force in the countries in which the
Group operates. The current tax charges will also be affected by
changes in the excess of tax depreciation over book depreciation
and the use of tax credits.
Analyses of European and non-European profit on ordinary
activities before taxation, and of the actual taxation charge
thereon, are as follows:
€ million € million € million
2002 2001 2000
Profit on ordinary activities
before taxation
Europe:
Parent and group companies 2 062 2 429 1 792
Joint ventures 19 21 14
Associates 12 – –
Unilever Annual Report & Accounts and Form 20-F 2002
Notes to the consolidated accounts 79
Unilever Group
2 093 2 450 1 806
Outside Europe:
Group companies 1 831 1 111 754
Joint ventures 60 63 42
Associates (5) – –
1 886 1 174 796
Total 3 979 3 624 2 602
€ million € million € million
2002 2001 2000
Taxation on profit on
ordinary activities
Europe:
Parent and group companies
Taxes payable (723) (760) (942)
Deferred taxation
of which:
95 (114) 293
Accelerated depreciation 113 62 116
Other (18) (176) 177
Joint ventures (6) (6) (5)
Associates (5) – –
(639) (880) (654)
Outside Europe:
Group companies
Taxes payable (1 084) (642) (722)
Deferred taxation
of which:
197 (6) 100
Accelerated depreciation (63) 25 3
Other 260 (31) 97
Joint ventures (13) (19) (6)
Associates 1 – –
(899) (667) (628)
Total (1 538) (1 547) (1 282)
7 Combined earnings per share
€ € €
2002 2001 2000
Per €0.51 share of NV ordinary capital:
Basic earnings per share 2.14 1.82 1.07
Basic earnings per share before
exceptional items and amortisation
of goodwill and intangibles 4.06 3.55 3.21
Diluted earnings per share 2.07 1.77 1.05
€ cents € cents € cents
2002 2001 2000
Per 1.4p share of PLC ordinary capital:
Basic earnings per share 32.05 27.27 16.08
Basic earnings per share before
exceptional items and amortisation
of goodwill and intangibles 60.86 53.29 48.20
Diluted earnings per share 31.10 26.54 15.69
Basis of calculation:
The calculations of combined earnings per share are based on the
net profit attributable to ordinary capital divided by the average
number of share units representing the combined ordinary capital
of NV and PLC in issue during the year, after deducting shares held
to meet Unilever employee share options which are not yet exercised.
For the calculation of combined ordinary capital the exchange rate
of £1 = Fl. 12 = €5.445 has been used, in accordance with the
Equalisation Agreement.
Earnings per share before exceptional items and amortisation of
goodwill and intangibles is provided because the directors believe
it better explains the ongoing trends in the Group’s performance
during the duration of the Path to Growth programme.
The calculations of diluted earnings per share are based on
(a) conversion into PLC ordinary shares of the shares in a group
company which are convertible in the year 2038 as described in
‘Control of Unilever’ on page 141, and (b) the exercise of share
options, details of which are set out in note 29 on pages 103
to 111.
Calculation of average number of share units:
Millions of €0.51 share units
2002 2001 2000
Average ordinary capital: NV 571.6 571.6 571.6
PLC 436.7 436.7 436.7
less: shares held by employee share
trusts and companies (31.6) (25.5) (19.1)
Combined average number of share
units for all bases except diluted
earnings per share 976.7 982.8 989.2
add: shares issuable in 2038 23.6 23.6 23.6
add: shares under option 35.3 23.5 17.2
less: shares issuable at fair value (29.0) (19.9) (15.7)
Adjusted combined average number
of share units for diluted earnings
per share basis 1 006.6 1 010.0 1 014.3
Financial Statements