REG - Unilever PLC Unilever NV. - Full Results 2017 <Origin Href="QuoteRef">ULVR.L</Origin> <Origin Href="QuoteRef">UNc.AS</Origin> - Part 2
01/02/2018 07:06
- Part 2: For the preceding part double click ID:nRSA5603Da
16,980
Profit or loss for the period - - - 6,053 6,053 433 6,486
Other comprehensive income net of tax:
Fair value gains/(losses) on financial instruments - - (76) - (76) 1 (75)
Remeasurements of defined benefit pension plans net of tax - - - 1,282 1,282 - 1,282
Currency retranslation gains/(losses) - - (903) (27) (930) (53) (983)
Total comprehensive income - - (979) 7,308 6,329 381 6,710
Dividends on ordinary capital - - - (3,916) (3,916) - (3,916)
Repurchase of shares(a) - - (5,014) - (5,014) - (5,014)
Other movements in treasury shares(b) - - (30) (174) (204) - (204)
Share-based payment credit(c) - - - 284 284 - 284
Dividends paid to non-controlling interests - - - - - (345) (345)
Currency retranslation gains/(losses) net of tax - (4) - - (4) - (4)
Other movements in equity - - (167) (33) (200) 96 (104)
31 December 2017 484 130 (13,633) 26,648 13,629 758 14,387
(a) Repurchase of shares reflects the cost of acquiring ordinary shares as
part of the share buyback programme announced on 6 April 2017. At 31 December
2017 these shares have not been cancelled and are recognised as treasury
shares (see note 8).
(b) Includes purchases and sales of treasury shares other than the share
buyback programme, and transfers from treasury shares to retained profit of
share-settled schemes arising from prior years and differences between
exercise and grant price of share options.
(c) The share-based payment credit relates to the non-cash charge recorded in
operating profit in respect of the fair value of share options and awards
granted to employees.
BALANCE SHEET
(unaudited)
E million As at As at
31 December 31 December
2017 2016
Non-current assets
Goodwill 16,881 17,624
Intangible assets 11,520 9,809
Property, plant and equipment 10,411 11,673
Pension asset for funded schemes in surplus 2,173 694
Deferred tax assets 1,085 1,354
Financial assets 675 673
Other non-current assets 557 718
43,302 42,545
Current assets
Inventories 3,962 4,278
Trade and other current receivables 5,222 5,102
Current tax assets 488 317
Cash and cash equivalents 3,317 3,382
Other financial assets 770 599
Assets held for sale 3,224 206
16,983 13,884
Total assets 60,285 56,429
Current liabilities
Financial liabilities 7,968 5,450
Trade payables and other current liabilities 13,426 13,871
Current tax liabilities 1,088 844
Provisions 525 390
Liabilities held for sale 170 1
23,177 20,556
Non-current liabilities
Financial liabilities 16,462 11,145
Non-current tax liabilities 118 120
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 1,225 2,163
Unfunded schemes 1,509 1,704
Provisions 794 1,033
Deferred tax liabilities 1,913 2,061
Other non-current liabilities 700 667
22,721 18,893
Total liabilities 45,898 39,449
Equity
Shareholders' equity 13,629 16,354
Non-controlling interests 758 626
Total equity 14,387 16,980
Total liabilities and equity 60,285 56,429
CASH FLOW STATEMENT
(unaudited)
E million Full Year
2017 2016
Net profit 6,486 5,547
Taxation 1,667 1,922
Share of net profit of joint ventures/associates and other income
from non-current investments and associates (173) (231)
Net finance costs 877 563
Operating profit 8,857 7,801
Depreciation, amortisation and impairment 1,538 1,464
Changes in working capital (68) 51
Pensions and similar obligations less payments (904) (327)
Provisions less payments 200 65
Elimination of (profits)/losses on disposals (298) 127
Non-cash charge for share-based compensation 284 198
Other adjustments (153) (81)
Cash flow from operating activities 9,456 9,298
Income tax paid (2,164) (2,251)
Net cash flow from operating activities 7,292 7,047
Interest received 154 105
Net capital expenditure (1,621) (1,878)
Other acquisitions and disposals (4,335) (1,701)
Other investing activities (77) 286
Net cash flow (used in)/from investing activities (5,879) (3,188)
Dividends paid on ordinary share capital (3,916) (3,609)
Interest and preference dividends paid (470) (472)
Change in financial liabilities 8,928 1,771
Buy back of preference shares (448) -
Repurchase of shares (5,014) -
Other movements on treasury shares (204) (257)
Other financing activities (309) (506)
Net cash flow (used in)/from financing activities (1,433) (3,073)
Net increase/(decrease) in cash and cash equivalents (20) 786
Cash and cash equivalents at the beginning of the period 3,198 2,128
Effect of foreign exchange rate changes (9) 284
Cash and cash equivalents at the end of the period 3,169 3,198
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
(unaudited)
1 ACCOUNTING INFORMATION AND POLICIES
Except as set out below the accounting policies and methods of computation are
consistent with the year ended 31 December 2016. The condensed preliminary
financial statements are based on International Financial Reporting Standards
(IFRS) as adopted by the EU and IFRS as issued by the International Accounting
Standards Board. With effect from 1 January 2017 we have implemented
amendments to IAS 7 'Statement of Cash Flows'. The impact on the Group is not
material.
The condensed financial statements are shown at current exchange rates, while
percentage year-on-year changes are shown at both current and constant
exchange rates to facilitate comparison. The income statement on page 13, the
statement of comprehensive income on page 13, the statement of changes in
equity on page 14 and the cash flow statement on page 16 are translated at
exchange rates current in each period. The balance sheet on page 15 is
translated at period-end rates of exchange.
The condensed financial statements attached do not constitute the full
financial statements within the meaning of Section 434 of the UK Companies Act
2006, which will be finalised and delivered to the Registrar of Companies in
due course. Full accounts for Unilever for the year ended 31 December 2016
have been delivered to the Registrar of Companies; the auditors' reports on
these accounts were unqualified, did not include a reference to any matters by
way of emphasis and did not contain a statement under Section 498 (2) or
Section 498 (3) of the UK Companies Act 2006.
Change in reporting of performance measures
Following our strategic review earlier this year, we announced that we would
be accelerating savings programmes and being more active in the development of
our portfolio, including exiting from our spreads business. This will mean
spending significant funds on restructuring costs. In order to provide a clear
picture of our performance against the objectives set out in the announcement
of the outcome of the review, where relevant, our non-GAAP measures will now
exclude restructuring costs, the change from our previous measure of core
operating profit is the additional exclusion of restructuring costs that are
not related to acquisitions and disposals.
Our non-GAAP measures have therefore changed from 'core operating profit',
'core operating margin', 'core earnings per share', 'core effective tax rate'
and 'constant core earnings per share' to 'underlying operating profit',
'underlying operating margin', 'underlying earnings per share', 'underlying
effective tax rate' and 'constant underlying earnings per share'
respectively.
Underlying operating profit and underlying operating margin exclude the impact
of business disposals, acquisition and disposal-related costs, restructuring
costs, impairments and other one-off items, which we collectively term
non-underlying items.
Underlying earnings per share, underlying effective tax rate and constant
underlying earnings per share exclude post-tax impact of non-underlying items
and post-tax impact of other significant unusual items within net profit but
not operating profit.
The definitions of underlying operating profit, underlying operating margin,
underlying earnings per share, underlying effective tax rate and constant
underlying earnings per share are provided on pages 9 and 10. Note 2 explains
non-underlying items in 2017 and 2016.NOTES TO THE CONDENSED FINANCIAL
STATEMENTS
2 SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT
Non-underlying items
Non-underlying items are costs and revenues relating to gains and losses on
business disposals, acquisition and disposal-related costs, restructuring
costs, impairments and other one-off items within operating profit, and other
significant and unusual items within net profit but outside of operating
profit, which we collectively term non-underlying items, due to their nature
and/or frequency of occurrence. These items are significant in terms of nature
and/or amount and are relevant to an understanding of our financial
performance.
Restructuring costs are charges associated with activities planned by
management that significantly change either the scope of the business or the
manner in which it is conducted.
E million Full Year
2017 2016
Acquisition and disposal-related costs (159) (132)
Gain/(loss) on disposal of group companies(a) 334 (95)
Restructuring costs (638) (578)
Impairment and other one-off items(b) (80) (18)
Non-underlying items within operating profit before tax (543) (823)
Tax on non-underlying items within operating profit 77 213
Non-underlying items within operating profit after tax (466) (610)
Premium paid on buy back of preference shares (see note 9) (382) -
Tax impact of non-underlying items not in operating profit but within net profit:
Tax on premium paid on buy back of preference shares (non-deductible) - -
Impact of US tax reform 578 -
Non-underlying items not in operating profit but within net profit after tax 196 -
Non-underlying items after tax(c) (270) (610)
Attributable to:
Non-controlling interests (8) (9)
Shareholders' equity (262) (601)
(a) 2017 includes a gain of E309 million from the sale of AdeS soy beverage
business in Latin America.
(b) 2017 includes an E80 million charge for legal cases in relation to
investigations by national competition authorities including those within
Italy and South Africa. 2016 includes E18 million in foreign exchange losses
resulting from remeasurement of the Argentinian business
(c) Non-underlying items after tax is calculated as non-underlying items
within operating profit after tax plus non-underlying items not in operating
profit but within net profit after tax.
3 SEGMENT INFORMATION - CATEGORIES
Fourth Quarter Personal Care Home Care Home Care and Personal Care Foods Refreshment Foods and Refreshment Total
Turnover (E million)
2016 5,240 2,573 7,813 3,376 1,861 5,237 13,050
2017 5,195 2,587 7,782 3,277 1,765 5,042 12,824
Change (%) (0.9) 0.5 (0.4) (2.9) (5.2) (3.7) (1.7)
Impact of:
Exchange rates* (%) (7.2) (7.5) (7.3) (4.4) (6.3) (5.2) (6.4)
Acquisitions (%) 2.4 2.1 2.3 0.2 1.3 0.6 1.6
Disposals (%) - (0.1) (0.1) - (3.2) (1.1) (0.5)
Underlying sales growth (%) 4.4 6.5 5.1 1.4 4.0 2.3 4.0
Price (%) - 1.1 0.3 1.1 1.6 1.3 0.7
Volume (%) 4.4 5.4 4.7 0.3 2.3 1.0 3.2
Full Year Personal Care Home Care Home Care and Personal Care Foods Refreshment Foods and Refreshment Total
Turnover (E million)
2016 20,172 10,009 30,181 12,524 10,008 22,532 52,713
2017 20,697 10,574 31,271 12,512 9,932 22,444 53,715
Change (%) 2.6 5.6 3.6 (0.1) (0.8) (0.4) 1.9
Impact of:
Exchange rates* (%) (1.9) (1.7) (1.8) (1.1) (3.9) (2.4) (2.1)
Acquisitions (%) 1.8 3.1 2.2 0.1 0.3 0.2 1.3
Disposals (%) (0.1) (0.2) (0.1) (0.1) (1.7) (0.8) (0.4)
Underlying sales growth (%) 2.9 4.4 3.4 1.0 4.9 2.7 3.1
Price (%) 1.5 2.3 1.8 1.7 4.5 3.0 2.3
Volume (%) 1.4 2.1 1.6 (0.7) 0.4 (0.2) 0.8
Operating profit (E million)
2016 3,704 949 4,653 2,180 968 3,148 7,801
2017 4,103 1,138 5,241 2,275 1,341 3,616 8,857
Underlying operating profit (E million)
2016 4,033 1,086 5,119 2,394 1,111 3,505 8,624
2017 4,375 1,288 5,663 2,471 1,266 3,737 9,400
Operating margin (%)
2016 18.4% 9.5% 15.4% 17.4% 9.7% 14.0% 14.8%
2017 19.8% 10.8% 16.8% 18.2% 13.5% 16.1% 16.5%
Underlying operating margin (%)
2016 20.0% 10.9% 17.0% 19.1% 11.1% 15.6% 16.4%
2017 21.1% 12.2% 18.1% 19.7% 12.7% 16.7% 17.5%
* Q4 underlying price growth in Venezuela has been excluded from the Price
rows in the tables above, and an equal and opposite adjustment made in the
Exchange rate rows.
The adjustment made at Total Group level in these tables in respect of Q4
price growth in Venezuela was 3.4% for the fourth quarter and 0.8% for the
full year. Prior to this adjustment being made, fourth quarter price growth at
Total Group level would have been 4.0% and fourth quarter exchange rate impact
(9.4%). The corresponding adjustments for Refreshment were 24.5% for the
fourth quarter and 4.4% for the full year, and for Foods and Refreshment 8.4%
for the fourth quarter and 1.9% for the full year. There is no adjustment in
the other categories.
Turnover growth is made up of distinct individual growth components namely
underlying sales, currency impact, acquisitions and disposals. Turnover growth
is arrived at by multiplying these individual components on a compounded basis
as there is a currency impact on each of the other components. Accordingly,
turnover growth is more than just the sum of the individual components.
Underlying operating profit represents our measure of segment profit or loss
as it is the primary measure used for the purpose of making decisions about
allocating resources and assessing performance of segments. Underlying
operating margin is calculated as underlying operating profit divided by
turnover.TO THE CONDENSED FINANCIAL STATEMENTS
(unaudited)
4 SEGMENT INFORMATION - GEOGRAPHICAL AREA
Fourth Quarter Asia / AMET / RUB The Americas Europe Total
Turnover (E million)
2016 5,547 4,481 3,022 13,050
2017 5,556 4,239 3,029 12,824
Change (%) 0.2 (5.4) 0.2 (1.7)
Impact of:
Exchange rates* (%) (8.0) (8.3) (0.6) (6.4)
Acquisitions (%) 2.3 1.5 0.5 1.6
Disposals (%) - (1.4) - (0.5)
Underlying sales growth (%) 6.5 3.4 0.3 4.0
Price (%) 2.2 - (1.0) 0.7
Volume (%) 4.2 3.4 1.3 3.2
Full Year Asia / AMET / RUB The Americas Europe Total
Turnover (E million)
2016 22,445 17,105 13,163 52,713
2017 23,266 17,525 12,924 53,715
Change (%) 3.7 2.5 (1.8) 1.9
Impact of:
Exchange rates* (%) (3.0) (1.3) (1.4) (2.1)
Acquisitions (%) 1.1 2.4 0.3 1.3
Disposals (%) (0.2) (1.1) (0.0) (0.4)
Underlying sales growth (%) 5.9 2.4 (0.7) 3.1
Price (%) 3.7 2.2 (0.2) 2.3
Volume (%) 2.1 0.2 (0.5) 0.8
Operating profit (E million)
2016 3,275 2,504 2,022 7,801
2017 3,802 3,086 1,969 8,857
Underlying operating profit (E million)
2016 3,529 2,905 2,190 8,624
2017 4,108 3,063 2,229 9,400
Operating margin (%)
2016 14.6% 14.6% 15.4% 14.8%
2017 16.3% 17.6% 15.2% 16.5%
Underlying operating margin (%)
2016 15.7% 17.0% 16.6% 16.4%
2017 17.7% 17.5% 17.2% 17.5%
* Q4 underlying price growth in Venezuela has been excluded from the Price
rows in the tables above, and an equal and opposite adjustment made in the
Exchange rate rows.
The adjustment made at Total Group level in these tables in respect of Q4
price growth in Venezuela was 3.4% for the fourth quarter and 0.8% for the
full year. Prior to this adjustment being made, fourth quarter price growth at
Total Group level would have been 4.0% and fourth quarter exchange rate impact
(9.4%). The corresponding adjustments for the Americas were 10.1% for the
fourth quarter and 2.6% for the full year. There is no adjustment in the other
geographical areas.NOTES TO THE CONDENSED FINANCIAL ATEMENTS
5 TAXATION
The effective tax rate for the year was 20.8% compared to 26.2% in 2016. The
change was primarily driven by the impact of the US tax reform which resulted
in a 720bps tax benefit. The tax rate is calculated by dividing the tax charge
by pre-tax profit excluding the contribution of joint ventures and
associates.
E million Full Year 2017 Full Year 2016
Before tax Tax (charge)/ credit After tax Before tax Tax (charge)/ credit After tax
Fair value gains/(losses) on financial instruments (61) (14) (75) (15) - (15)
Remeasurements of defined benefit pension plans 1,620 (338) 1,282 (1,221) 241 (980)
Currency retranslation gains/(losses) (1,024) 41 (983) 217 - 217
Other comprehensive income 535 (311) 224 (1,019) 241 (778)
6 COMBINED EARNINGS PER SHARE
The combined earnings per share calculations are based on the average number
of share units representing the combined ordinary shares of NV and PLC in
issue during the period, less the average number of shares held as treasury
shares.
In calculating diluted earnings per share and underlying earnings per share, a
number of adjustments are made to the number of shares, principally the
exercise of share options by employees.
Earnings per share for total operations for the twelve months were calculated
as follows:
2017 2016
Combined EPS - Basic
Net profit attributable to shareholders' equity (E million) 6,053 5,184
Average number of combined share units (millions of units) 2,801.6 2,840.2
Combined EPS - basic (E) 2.16 1.83
Combined EPS - Diluted
Net profit attributable to shareholders' equity (E million) 6,053 5,184
Adjusted average number of combined share units (millions of units) 2,814.0 2,853.9
Combined EPS - diluted (E) 2.15 1.82
Underlying EPS
Net profit attributable to shareholders' equity (E million) 6,053 5,184
Post tax impact of non-underlying items attributable to shareholders' equity (see note 2) 262 601
Underlying profit attributable to shareholders' equity 6,315 5,785
Adjusted average number of combined share units (millions of units) 2,814.0 2,853.9
Underlying EPS - diluted (E) 2.24 2.03
In calculating underlying earnings per share, net profit attributable to
shareholders' equity is adjusted to eliminate the post-tax impact of
non-underlying items.
During the period the following movements in shares have taken place:
Millions
Number of shares at 31 December 2016 (net of treasury shares) 2,839.7
Shares repurchased under the share buyback programme (101.9)
Net movements in shares under incentive schemes 1.1
Number of shares at 31 December 2017 2,738.9
7 ACQUISITIONS AND DISPOSALS
In 2017, the Group completed the following business acquisitions and disposals
as listed below. Total consideration for 2017 acquisitions is E4,912 million
(2016: E2,069 million for acquisitions completed during that year).
Deal completion date Acquired/Disposed business
1 February 2017 Acquired Living Proof, an innovative premium hair care business, using patented technology and breakthrough science. Living Proof forms part of our prestige Personal Care business.
28 March 2017 Sold the AdeS soy beverage business in Latin America to Coca Cola FEMSA and The Coca Cola Company.
1 May 2017 Acquired Kensington's, a condiment maker. Kensington's is a mission-driven company with a leading brand sold in the organic and naturals marketplace.
1 August 2017 Acquired 60% of EAC Myanmar, a home care business to form Unilever EAC Myanmar Company Limited.
1 August 2017 Acquired Hourglass, a luxury colour cosmetics business, known for innovation and exceptional product. Hourglass forms part of our prestige Personal Care business.
7 September 2017 Acquired Pukka Herbs, an organic herbal tea business that enhances our presence in the Naturals segment of Refreshment.
9 September 2017 Acquired Weis, an ice cream business. Weis is a second-generation Australian ice cream and frozen dessert manufacturer with the original iconic Fruito Bar and aims to increase our market position in Refreshment.
1 November 2017 Acquired 98% of Carver Korea, a leading skincare business in North Asia from Bain Capital Private Equity and Goldman Sachs. The brands acquired provide Unilever a presence in South Korea. Further details are provided below.
1 December 2017 Acquired Mãe Terra, a Brazilian naturals and organic food business. Mãe Terra is a fast-growing and well-loved brand in Brazil and adds to the Foods business by providing health-conscious consumers with organic and nutritious food products.
11 December 2017 Acquired TAZO, the leading brand in the specialty tea category, which enhances our presence in the Black, Green and Herbal tea segments of Refreshment.
18 December 2017 Acquired Sundial Brands, a leading haircare and skincare company recognised for its innovative use of high-quality and culturally authentic ingredients.
31 December 2017 Acquired Schmidt's Naturals, a personal care company. Schmidt's Naturals is a strong, innovative brand in the fast-growing naturals category, that will complement our existing portfolio of US deodorants.
In addition to the completed deals in the table above:
- On 15 May 2017, the Group announced that it had signed an agreement to
purchase the home and personal care business of Quala in Latin America.
Subject to regulatory approval, this transaction is expected to complete
during the first quarter of 2018.
- On 22 September 2017, the Group announced the disposal of the South
African spreads business plus a cash consideration of E331 million in exchange
for Remgro's 25.75% shareholding in Unilever South Africa. Subject to
regulatory approval, this transaction is expected to complete during 2018.
- On 15 December 2017, the Group announced that it had signed an
agreement with KKR to sell its global spreads business excluding South
Africa). Subject to regulatory approval, the sale is expected to complete
during 2018.
Carver Korea acquisition
The Group acquired 98% equity of Carver Korea for a cash consideration of
E2,284 million. This acquisition adds the AHC brand to Unilever's portfolio.
The provisional fair value of net assets for the acquisition that is
recognised on the balance sheet is E1,281 million; the provisional fair values
have been determined pending the completion of valuations in 2018. The
intangible assets are principally brands. No contingent liabilities were
acquired.
The provisional estimate of goodwill is E1,030 million. It represents the
future value which the Group believes it will obtain through operational
synergies and the market position.
Total acquisition-related costs incurred to date for Carver Korea are E1
million which have been recorded within non-underlying items in the income
statement for the year ended 31 December 2017.
Since acquisition, Carver Korea has contributed E75 million to Group revenue
and E23 million to Group operating profit. If the acquisition had taken place
at the beginning of the year, Group revenue would have been E53,984 million
and Group operating profit would have been E8,982 million.
The following table summarises the consideration paid and net assets acquired
for the Group's acquisition of Carver Korea and other acquisitions.
E million Carver Other acquisitions Total 2017
Intangible assets 1,520 1,090 2,610
Other non-current assets 14 79 93
Trade and other receivables 18 78 96
Other current assets 150 99 249
Non-current liabilities (369) (119) (488)
Current liabilities (52) (85) (137)
Net assets acquired 1,281 1,142 2,423
Non-controlling interest (27) (23) (50)
Goodwill 1,030 1,509 2,539
Cash consideration 2,284 2,541 4,825
Deferred consideration - 87 87
Total consideration 2,284 2,628 4,912
8 SHARE BUYBACK PROGRAMME
On 6 April 2017, Unilever announced a share buyback programme of E5 billion in
2017. As at 31 December 2017, the Group has repurchased 101,942,383 ordinary
shares as part of the programme which are held by Unilever as treasury shares.
Consideration paid for the repurchase of shares including transaction costs
was E5,014 million which is recorded within other reserves.
9 PURCHASE OF PREFERENCE SHARES
On 11 October 2017 Unilever Corporate Holdings Nederland B.V., a wholly owned
subsidiary of Unilever PLC launched an unconditional and irrevocable offer for
the purchase of the issued and outstanding 6% and 7% preference shares in the
capital of Unilever N.V. On 3 November 2017, the offer period ended with 99%
of the preference shares having been tendered.
Consideration paid for the repurchase of these shares in 2017 was E448 million
and a liability of E2 million is recorded in other financial liabilities for
the remaining 1% as statutory buy out proceedings have been initiated. As the
preference shares were classified as debt in the balance sheet, the difference
between consideration paid and carrying value of the shares of E382 million is
recorded within finance costs in the consolidated income statement.
10 FINANCIAL INSTRUMENTS
The Group is exposed to the risks of changes in fair value of its financial
assets and liabilities. The following tables summarise the fair values and
carrying amounts of financial instruments and the fair value calculations by
category.
E million Fair value Carrying amount
As at 31 December 2017 As at 31 December 2016 As at 31 December 2017 As at 31 December 2016
Financial assets
Cash and cash equivalents 3,317 3,382 3,317 3,382
Held-to-maturity investments 163 142 163 142
Loans and receivables 463 398 463 398
Available-for-sale financial assets 564 509 564 509
Financial assets at fair value through profit and loss:
Derivatives 116 91 116 91
Other 139 132 139 132
4,762 4,654 4,762 4,654
Financial liabilities
Preference shares - (125) - (68)
Bank loans and overdrafts (995) (1,147) (992) (1,146)
Bonds and other loans (23,368) (15,844) (22,709) (15,053)
Finance lease creditors (147) (165) (131) (143)
Derivatives (421) (185) (421) (185)
Other financial liabilities (177) - (177) -
(25,108) (17,466) (24,430) (16,595)
E million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
As at 31 December 2017 As at 31 December 2016
Assets at fair value
Other cash equivalents - 80 - - 90 -
Available-for-sale financial assets 215 7 342 138 98 273
Financial assets at fair value through profit or loss:
Derivatives(a) - 173 - - 226 -
Other 137 - 2 - 131 1
Liabilities at fair value
Derivatives(b) - (534) - - (331) -
Deferred consideration - - (445) - - (380)
(a) Includes E57 million (2016: E135 million) derivatives, reported within
trade receivables, that hedge trading activities.
(b) Includes E(113) million (2016: E(146) million) derivatives, reported
within trade creditors, that hedge trading activities.
There were no significant changes in classification of fair value of financial
assets and financial liabilities since 31 December 2016. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2016.
The fair value of trade receivables and payables is considered to be equal to
the carrying amount of these items due to their short-term nature.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as the
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date.
Methods and assumptions used to estimate the fair values are consistent with
those used in the year ended 31 December 2016.
TO THE CONDENSED FINANCIAL STATEMENTS
11 ASSETS AND LIABILITIES HELD FOR SALE
The following assets and liabilities have been disclosed as held for sale at
31 December 2017:
E million 2017 Spreads(a) 2017 Total 2016 Total(b)
Property, plant and equipment held for sale - 30 22
Disposal groups held for sale
Non-Current assets
Goodwill and intangible assets 2,311 2,311 98
Property, plant and equipment 548 552 46
Deferred tax assets 145 145 -
Other non-current assets 1 1 -
3,005 3,009 144
Current assets
Inventories 130 130 34
Trade and other receivables 17 18 1
Current tax assets 13 13 -
Cash and cash equivalents 19 19 -
Other - 5 5
179 185 40
Assets held for sale 3,184 3,224 206
Current liabilities
Trade payables and other current liabilities 106 106 1
Current tax liabilities 11 11 -
Provisions 1 1 -
118 118 1
Non-Current liabilities
Pensions and post-retirement healthcare liabilities 9 9 -
Provisions 1 1 -
Deferred tax liabilities 42 42 -
52 52 -
Liabilities held for sale 170 170 1
(a) Refer to note 7 for an explanation of this disposal.
(b) In 2016, disposal groups held for sale were primarily related to the AdeS
soy beverage business in Latin America.OTES TO THE CONDENSED FINANCIAL
STATEMENTS
12 DIVIDENDS
The Boards have declared a quarterly interim dividend for Q4 2017 at the
following rates which are equivalent in value at the rate of exchange applied
under the terms of the Equalisation Agreement between the two companies:
Per Unilever N.V. ordinary share: E
0.3585
Per Unilever PLC ordinary share: £ 0.3155
Per Unilever N.V. New York share: US$ 0.4452
Per Unilever PLC American Depositary Receipt: US$ 0.4452
The quarterly interim dividends have been determined in euros and converted
into equivalent sterling and US dollar amounts using exchange rates issued by
WM/Reuters on 30 January 2018.
US dollar cheques for the quarterly interim dividend will be mailed on 21
March 2018 to holders of record at the close of business on 16 February 2018.
In the case of the NV New York shares, Netherlands withholding tax will be
deducted.
The quarterly dividend calendar for the remainder of 2018 will be as follows:
Announcement Date NV, PLC, NV NY and PLC ADR ex-Dividend Date Record Date Payment Date
Quarterly dividend for Q4 2017 1 February 2018 15 February 2018 16 February 2018 21 March 2018
Quarterly dividend for Q1 2018 19 April 2018 3 May 2018 4 May 2018 6 June 2018
Quarterly dividend for Q2 2018 19July 2018 2 August 2018 3 August 2018 5 September 2018
Quarterly dividend for Q3 2018 18 October 2018 1 November 2018 2 November 2018 5 December 2018
13 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned
elsewhere in this report.
This information is provided by RNS
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