Meeting everyday needs of people everywhere - Unilever

Unilever Group Notes to the consolidated accounts
25 Acquisition and disposal of group companies (continued)
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Fl. million
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1999 1998 1997
05111 01115 511111115115111111151105111
Speciality
chemicals
Total Total businesses Other Total
000000511101115 01115 0115 5111111115 015111
Disposals
Intangible assets 4 — — — —
Fixed assets 114 161 3 951 591 4 542
Current assets 101 102 3 069 792 3 861
Creditors (45) (46) (1 141) (384) (1 525)
Provisions for liabilities and charges:
Pensions and similar obligations (17) (3) (365) (145) (510)
Deferred taxation (5) (3) (432) 3 (429)
Other provisions (1) 16 214 63 277
Minority interests 20 (33) 27 (1) 26
01115 01115 511111115 5111111115 051111
Net assets sold 171 194 5 323 919 6 242
Attributable goodwill 83 187 1 730 394 2 124
Profit on sale attributable to Unilever 40 1 079 8 419 (95) 8 324
01115 01115 0115 5111111115 51111111115
Consideration 294 1 460 15 472 1 218 16 690
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Of which:
Cash 27 270 1 460 15 257 1 126 16 383
Cash balances of businesses sold 27 7 4 (77) 93 16
Current investments, cash deposits and borrowings of
businesses sold 10 (4) 292 (1) 291
Non cash and deferred consideration 7 — — — —
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26 Reconciliation of operating profit to operating cash flows
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Fl. million
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1999 1998 1997
05111 0511 000511
Continuing Discontinued
Total Total businesses operations
0000005111011151101115 0115 01115 01115
Operating profit 9 482 9 718 7 049 514
Depreciation and amortisation 2 529 2 068 2 188 148
Changes in working capital:
Stocks 41 (940) 259 (8)
Debtors (373) (493) (331) (151)
Creditors 587 386 901 (29)
Pensions and similar provisions less payments 400 116 (7) 17
Restructuring and other provisions less payments (417) (101) 1 258 57
Other adjustments 211 (806) 376 8
01115 0115 01115 05111
Cash flow from operating activities 12 460 9 948 11 693 556
01115 0115 01115 05111
In 1999 a charge of Fl. 594 million was booked in operating profit for exceptional items of which Fl. 512 million was charged for
restructuring projects, and a net Fl. 7 million for losses on disposal of businesses. Other exceptional items comprised primarily legal and
insurance settlements and amounted to Fl. 75 million.
The cash inflow relating to exceptional disposals and other items was Fl. 167,million all of which was received in 1999.
The net cash outflow in respect of the restructuring costs is estimated at Fl. 308 million. This comprises Fl. 248 million in respect
of employee compensation costs and Fl. 80 million of other related costs less proceeds of disposal of fixed assets of Fl. 20 million.
Of these cash flows, Fl. 238 million arose in 1999 and Fl. 70 million is expected in 2000 and later years.
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