EX-7.1 4 d305877dex71.htm EX-7.1

Exhibit 7.1

Calculation of Ratio of Earnings to Fixed Charges (times)

The ratio of earnings to fixed charges is determined using the following applicable factors:

Earnings available for fixed charges are calculated, first, by determining the sum of: (a) net profit before taxation and the Unilever Group’s share of net profit/(loss) of joint ventures and associates; (b) dividend income receivable from joint ventures and associates; and (c) fixed charges, as defined below.

Fixed charges are calculated as the sum of: (a) finance costs (both expensed and capitalized); and (b) one-third of lease costs (e.g., that portion of rental expense that is representative of the interest factor).

Earnings to Fixed Charges |  | € million 2016 |  |  | € million 2015 |  |  | € million 2014 |  |  | € million 2013 |  |  | € million 2012 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net profit |  |  | 5,547 |  |  |  | 5,259 |  |  |  | 5,515 |  |  |  | 5,263 |  |  |  | 4,836 |
Add: Taxation |  |  | 1,922 |  |  |  | 1,961 |  |  |  | 2,131 |  |  |  | 1,851 |  |  |  | 1,697 |
(Less)/Add: Share of net profit/(loss) of joint ventures and associates |  |  | (127 | ) |  |  | (107 | ) |  |  | (98 | ) |  |  | (113 | ) |  |  | (105 | )
Add: Dividend income receivable from joint ventures and associates |  |  | 144 |  |  |  | 124 |  |  |  | 131 |  |  |  | 110 |  |  |  | 119 |
Add: Fixed charges |  |  | 761 |  |  |  | 694 |  |  |  | 678 |  |  |  | 663 |  |  |  | 712 |
|  |  | 8,247 |  |  |  | 7,931 |  |  |  | 8,357 |  |  |  | 7,774 |  |  |  | 7,259 |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance costs |  |  | 584 |  |  |  | 516 |  |  |  | 500 |  |  |  | 500 |  |  |  | 526 |
Add: One-third of lease costs |  |  | 177 |  |  |  | 178 |  |  |  | 178 |  |  |  | 163 |  |  |  | 186 |
|  |  | 761 |  |  |  | 694 |  |  |  | 678 |  |  |  | 663 |  |  |  | 712 |
Ratio of earnings to fixed charges (times) |  |  | 10.8 |  |  |  | 11.4 |  |  |  | 12.3 |  |  |  | 11.7 |  |  |  | 10.2 |